[House Report 113-575] [From the U.S. Government Publishing Office] 113th Congress Report HOUSE OF REPRESENTATIVES 2d Session 113-575 ====================================================================== ENHANCE LABELING, ACCESSING, AND BRANDING OF ELECTRONIC LICENSES ACT OF 2014 _______ September 8, 2014.--Committed to the Committee of the Whole House on the State of the Union and ordered to be printed _______ Mr. Upton, from the Committee on Energy and Commerce, submitted the following R E P O R T [To accompany H.R. 5161] [Including cost estimate of the Congressional Budget Office] The Committee on Energy and Commerce, to whom was referred the bill (H.R. 5161) to promote the non-exclusive use of electronic labeling for devices licensed by the Federal Communications Commission, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. CONTENTS Page Purpose and Summary.............................................. 1 Background and Need for Legislation.............................. 2 Committee Consideration.......................................... 2 Committee Votes.................................................. 2 Committee Oversight Findings..................................... 2 Statement of General Performance Goals and Objectives............ 3 New Budget Authority, Entitlement Authority, and Tax Expenditures 3 Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 3 Committee Cost Estimate.......................................... 3 Congressional Budget Office Estimate............................. 3 Federal Mandates Statement....................................... 4 Duplication of Federal Programs.................................. 4 Disclosure of Directed Rule Makings.............................. 4 Advisory Committee Statement..................................... 4 Applicability to Legislative Branch.............................. 4 Section-by-Section Analysis of the Legislation................... 4 Changes in Existing Law Made by the Bill, as Reported............ 5 Purpose and Summary H.R. 5161, the ``Enhance Labeling, Accessing, and Branding of Electronic Licenses Act of 2014,'' authorizes the Federal Communications Commission (FCC or Commission) to promulgate regulations to allow manufacturers of devices with an integrated display to use electronic labeling for the equipment in place of affixing physical labels to the equipment. Background and Need for Legislation One of the FCC's duties is the certification and labeling of radiofrequency devices, verifying compliance with the Commission's interference rules. Current rules require a physical label on the device, detailing the identification of the device as authorized for use in the United States. The specific requirements for labeling vary depending on the type of device and its equipment authorization process. As these devices become smaller in size, it is increasingly difficult for manufacturers to comply with the physical labeling requirements. The E-LABEL Act allows manufacturers to ``digitally label'' devices with a screen, such as a smartphone. The device would comply with labeling requirements by displaying a digital label on the screen of the device. The digital label still would contain all relevant certification information, but would be displayed and easily accessed on the digital screen. Electronic labeling has potential benefits for consumers and manufacturers alike, as e-labeling creates flexibility for manufacturers, resulting in greater aesthetic and design innovation. The lack of a physical label also may reduce the cost of the labeling. Authorizing the FCC to permit electronic labeling is a step towards modernizing the laws that regulate communications and technology equipment, and will help to streamline the approval processes for bringing innovative devices to American consumers. Committee Consideration On July 24, 2014, the Subcommittee on Communications and Technology held a legislative hearing on H.R. 5161. Witnesses included one of the bill's sponsors, Representative Robert E. Latta, and Harold Feld, Senior Vice President, Public Knowledge. On July 29 and 30, 2014, the Committee on Energy and Commerce met in open markup session, to consider H.R. 5161. H.R. 5161 was ordered favorably reported to the House, by voice vote. Committee Votes Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion to report legislation and amendments thereto. There were no record votes taken in connection with ordering H.R. 5161 reported. A motion by Mr. Upton to order H.R. 5161 reported to the House, as amended, was agreed to by a voice vote. Committee Oversight Findings Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House of Representatives, the Committee held hearings and made findings that are reflected in this report. Statement of General Performance Goals and Objectives The goal and objective of H.R. 5161, the ``E-LABEL Act,'' is to promote the use of electronic labeling for devices licensed by the FCC. New Budget Authority, Entitlement Authority, and Tax Expenditures In compliance with clause 3(c)(2) of rule XIII of the Rules of the House of Representatives, the Committee finds that H.R. 5161 would result in no new or increased budget authority, entitlement authority, or tax expenditures or revenues. Earmark, Limited Tax Benefits, and Limited Tariff Benefits In compliance with clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of the House of Representatives, the Committee finds that H.R. 5161 contains no earmarks, limited tax benefits, or limited tariff benefits. Committee Cost Estimate The Committee adopts as its own the cost estimate prepared by the Director of the Congressional Budget Office pursuant to section 402 of the Congressional Budget Act of 1974. Congressional Budget Office Estimate Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House of Representatives, the following is the cost estimate provided by the Congressional Budget Office pursuant to section 402 of the Congressional Budget Act of 1974: U.S. Congress, Congressional Budget Office, Washington, DC, August 25, 2014. Hon. Fred Upton, Chairman, Committee on Energy and Commerce, House of Representatives, Washington, DC. Dear Mr. Chairman: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5161, the Enhance Labeling, Accessing, and Branding of Electronic Licenses Act of 2014. If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is Susan Willie. Sincerely, Douglas W. Elmendorf. Enclosure. H.R. 5161--Enhance Labeling, Accessing, and Branding of Electronic Licenses Act of 2014 CBO estimates that implementing H.R. 5161 would have a negligible effect on net discretionary costs over the 2015-2019 period. Enacting H.R. 5161 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. H.R. 5161 would direct the Federal Communications Commission (FCC) to allow manufacturers of electronic devices with a screen to display information required by the agency digitally on the screen rather than on a label affixed to the device. On July 10, 2014, the FCC issued guidance that describes how devices with integrated displays can present label information electronically. Based on information from the FCC, CBO expects that any additional actions that agency would take to comply with the bill's requirements would not have a significant effect on the agency's workload, and thus, its spending. In addition, the FCC is authorized to collect fees sufficient to cover its annual appropriation; therefore, CBO estimates that implementing H.R. 5161 would have a negligible effect on net discretionary costs, assuming appropriation action consistent with that authority. H.R. 5161 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments. The CBO staff contact for this estimate is Susan Willie. The estimate was approved by Theresa Gullo, Deputy Assistant Director for Budget Analysis. Federal Mandates Statement The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office pursuant to section 423 of the Unfunded Mandates Reform Act. Duplication of Federal Programs No provision of H.R. 5161 establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111-139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. Disclosure of Directed Rule Makings The Committee estimates that enacting H.R. 5161 specifically directs to be completed one rule making within the meaning of 5 U.S.C. 551. Advisory Committee Statement No advisory committees within the meaning of section 5(b) of the Federal Advisory Committee Act were created by this legislation. Applicability to Legislative Branch The Committee finds that the legislation does not relate to the terms and conditions of employment or access to public services or accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. Section-by-Section Analysis of the Legislation Section 1. Short title Section 1 provides the short title of the ``Enhance Labeling, Accessing, and Branding of Electronic Licenses Act of 2014,'' or the ``E-LABEL Act.'' Section 2. Findings Section 2 details the findings, including the history of FCC device labeling and the benefits of electronic labeling. Section 3. Authorization for Federal Communications Commission to allow electronic labeling Section 3 amends Title VII of the Communications Act of 1934 by adding new definitions for ``electronic labeling'' and ``radiofrequency device with display.'' Section 3 also requires the FCC to complete a rulemaking to allow electronic labeling of such devices within 9 months of the enactment of the legislation. Section 4. Savings clause Section 4 clarifies that the legislation does not affect the authority of the FCC under section 302 of the Communications Act. Changes in Existing Law Made by the Bill, as Reported In compliance with clause 3(e) of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (new matter is printed in italic and existing law in which no change is proposed is shown in roman): COMMUNICATIONS ACT OF 1934 * * * * * * * TITLE VII--MISCELLANEOUS PROVISIONS * * * * * * * SEC. 720. OPTIONAL ELECTRONIC LABELING OF COMMUNICATIONS EQUIPMENT. (a) Definitions.--In this section-- (1) the term ``electronic labeling'' means displaying required labeling and regulatory information electronically; and (2) the term ``radiofrequency device with display'' means any equipment or device that-- (A) is required under regulations of the Commission to be authorized by the Commission before the equipment or device may be marketed or sold within the United States; and (B) has the capability to digitally display required labeling and regulatory information. (b) Requirement To Promulgate Regulations for Electronic Labeling.--Not later than 9 months after the date of enactment of the Enhance Labeling, Accessing, and Branding of Electronic Licenses Act of 2014, the Commission shall promulgate regulations or take other appropriate action, as necessary, to allow manufacturers of radiofrequency devices with display the option to use electronic labeling for the equipment in place of affixing physical labels to the equipment. * * * * * * *