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Bono Mack: Sony Data Breach Is Cybersecurity ‘Ground Zero’

WASHINGTON, June 3, 2011 – The House Subcommittee on Commerce, Manufacturing and Trade met on Thursday to learn the lessons from recent large-scale customer data breaches at Sony and Epsilon.

The hearing examined the risks of the unprecedented data breaches, which Rep. Mary Bono Mack (R-CA), Chair of the subcommittee, called a ‘ground zero’ for cyber attacks. Other members of the subcommittee also assessed current investigation efforts by those companies, and gathered input and support to craft new data breach legislation.

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WASHINGTON, June 3, 2011 – The House Subcommittee on Commerce, Manufacturing and Trade met on Thursday to learn the lessons from recent large-scale customer data breaches at Sony and Epsilon.

The hearing examined the risks of the unprecedented data breaches, which Rep. Mary Bono Mack (R-CA), Chair of the subcommittee, called a ‘ground zero’ for cyber attacks. Other members of the subcommittee also assessed current investigation efforts by those companies, and gathered input and support to craft new data breach legislation.

Bono Mack, along with Rep. Henry Waxman (D-CA), and other members of the subcommittee, used the hearing to consider measures for the first phase of broader privacy legislation.

The breaches at Sony and Epsilon are the two largest in what has been a string of recent virtual break-ins at companies internationally.  Google announced the breach of several hundred personal Gmail accounts – including those of several senior U.S. government officials, military personnel and political activists – a day prior to the hearing.

Bono Mack is not the first to attempt to draft data breach legislation. Waxman, in an opening statement to the subcommittee, urged Congress to pass the Data Accountability and Trust Act, from the 111th Congress.

During comments she made after the hearing, however, Bono Mack emphasized that the increased sophistication of hackers and their support from organized crime, along with the increased consumer reliance upon cloud-based technologies necessitates new legislative action.

“You don’t want to reinvent the entire wheel, and you never want legislation that’s going to stifle the growth of the Internet,” said Bono Mack, “but the world has changed in the past two and four years.”

While 45 U.S. states and territories have data breach laws in place, companies expressed their frustration that current state data breach notification laws only create confusion and unnecessary burdens on consumers and businesses.

“A uniform national law would provide predictability and equity for consumers, regardless of their state of residence, and would make it easier and less costly for businesses to ensure any applicable notification requirements are met,” said Jeanette Fitzgerald, General Counsel for Epsilon Data Management, LLC. “

Republicans and Democrats alike emphasized the bi-partisan nature of the legislative action being considered. While there is no certain date for when legislation can be expected, the recent breaches stressed need for action.

“I’d rather get it right, and create something that’s going to move and become law,” said Bono Mack.

“Data security is not a partisan issue,” said Waxman. “It is an issue that affects all of us because sooner or later everyone is vulnerable to cyber attacks: private sector companies of all sizes; federal, state, and local governments; and the American public.”

Between April 19 and May 25 of this year, Sony reported five major data security breaches affecting over 100 million of its account holders in North America, Europe, and Japan. Sony denied that customers’ personal financial information were compromised. Sony’s investigations, however, confirmed that hackers accessed names, email addresses, passwords, physical addresses, and birthdates.

On April 1, Epsilon announced that a criminal intrusion into its systems affected an estimated 60 million email accounts. Internal investigations conducted in conjunction with the Secret Service and FBI determined that hackers had accessed only email addresses and customer names.

Members, while pleased with the aggressive action that both companies took to address the issue, expressed frustration with Sony for its methods in which it chose to announce the breaches to its customers.

Along with sending out 77 million emails, Tim Schaaff, President of Sony Network Entertainment International, said that Sony also notified its account holders by way of the company’s blog.

In a follow up email after the hearing, Patrick Seybold, Senior Director of Corporate Communications & Social Media of Sony Computer Entertainment & Sony Network Entertainment, explained the company chose to utilize its blog to announce the breach due to the blog’s high ranking on Technorati, a website that measures the influence, reach, and authority of blogs.

“During the crisis, the Playstation blog was [ranked] 19th, just behind the White House blog the day after they announced the news on Osama Bin Laden. It is now currently the number-31 blog on the internet, on all topics,” said Seybold.

Sony also waited several days before notifying its customers of the breach. Epsilon notified its customers and relevant Federal authorities immediately.

Bono Mack stressed in her opening statement, however, that the hearing was not about pointing fingers, but about finding solutions to protect the American consumer. She reiterated these same sentiments during further comments after the hearing. The congresswoman stressed the need for companies to institute faster customer notification times when a data security breach occurs.

“The consumer needs to be empowered to protect themselves. If they think their credit cards were hacked, they should call their banks.”

Josh Peterson is a DC-based journalist with a professional writing portfolio that includes work on US foreign policy and international affairs, telecom policy and cyber security, religion, arts, and music. He is currently a journalism intern at The National Journalism Center in Washington, D.C. and a former tech and social media intern at The Allan P. Kirby, Jr. Center for Constitutional Studies & Citizenship. Peterson received his Bachelor of Arts in philosophy and religion with a minor concentration in music from Hillsdale College in 2008. When he is not writing, Peterson lives a double life as a web designer, social media strategist, photographer, musician and mixed martial artist.

Congress

With Congress Debating Trillions, a Community Guide to Federal Broadband Funding

Muninetworks.org has put together a handy overview of broadband programs – current and pending.

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Photo from office of Rep. Dan Newhouse, R-Wash.

September 30, 2021 – In response to the Covid-19 pandemic, Congress and the Biden Administration passed two federal stimulus relief packages with historic levels of funding for programs devoted to advancing digital equity – the American Rescue Plan Act and the Consolidated Appropriations Act.

In early August, legislators in the U.S. Senate passed the Infrastructure Investment and Jobs Act, a $1.2 trillion infrastructure package which continues many of the federal programs started by previous relief packages and includes $65 billion more for expanding high-speed Internet infrastructure and connectivity. Members of Congress returned from their summer break on September 20th and U.S. House Representatives are expected to vote on the infrastructure relief bill, which enjoys bipartisan support, on September 30th.

This guide consolidates the different funding opportunities made available through various relief packages to assist communities interested in accessing federal funds to expand broadband infrastructure and digital inclusion services. It updates ILSR’s Community Guide to Broadband Funding released in April of 2021, which describes programs established under ARPA and CAA in more detail, provides additional resources and answers FAQs.

Important upcoming deadlines are bolded throughout this guide.

Infrastructure Investment and Jobs Act – Pending 

Though the legislation is pending in Congress, the version of the Infrastructure Investment and Jobs Act passed by the U.S. Senate in August of 2021 includes $65 billion for expanding Internet access and digital inclusion initiatives. The Senate bill takes a more holistic approach to addressing the digital divide than previous relief packages, as it includes historic levels of funding for digital skills training. Of the $65 billion:

  • $42.5 billion is being issued as block grants to states to fund the deployment of broadband infrastructure in “unserved” and “underserved” parts of the country. Funds can also be utilized to deploy affordable networks to low-income, multi-dwelling units (MDUs). Block grants of at least $100 million are reserved for all states.
  • $14.2 billion is devoted to extending and making permanent the Emergency Broadband Benefit Program established under the Consolidated Appropriations Act. The name of the program will change to the Affordable Connectivity Program, the monthly stipend offered will be reduced to $30 a month maximum in most cases, and eligibility for the program will increase to include households within 200 percent of the poverty line.
  • $2.75 billion will go to NTIA to establish programs promoting digital inclusion initiatives for communities which lack the skills, technologies and support necessary to take advantage of Internet connections. Of the $2.75 billion, $1.25 billion ($250 million a year for 5 years) is allocated for a competitive grant program, $60 million is for state planning grants, and $1.44 billion is for state implementation grants.
  • $2 billion will extend the Tribal Connectivity Program administered by NTIA, established under the Consolidated Appropriations Act.
  • $2 billion for USDA’s ReConnect Loan and Grant Program to deploy broadband to rural areas.
  • $1 billion will go to NTIA to create a grant program to expand access to middle-mile infrastructure.
  • $600 million will finance private activity bonds to fund broadband projects in partnership with the private sector.

As this legislation is pending, the rules and deadlines for these programs have yet to be established. A bipartisan federal infrastructure package is expected to pass Congress in the next two months. In the meantime, check out ILSR’s recent piece deciphering broadband provisions in the U.S. Senate infrastructure bill, Broadband Infrastructure Bill: The Good, The Bad & The Ugly.

Resources:

American Rescue Plan Act – Enacted March 2021

With the American Rescue Plan Act, the federal government specifically recognized and began to address critical infrastructure and connectivity needs across the country, and provided billions to states, municipalities, and counties to expand broadband infrastructure. The federal broadband programs introduced under the Rescue Plan required eligible projects to deliver higher-speed Internet connections than the federal government has required in the past, and also placed an emphasis on funding futureproof fiber infrastructure for the first time. The American Rescue Plan appropriated:

1. $350 billion to the Coronavirus State and Local Fiscal Recovery Fund – aid sent directly to states, counties, local municipalities and Tribal governments eligible to be used to make necessary investments in water, sewer, and broadband infrastructure.

Funding Guidance:

  • Eligible broadband projects are expected to be designed to deliver Internet service that reliably meets or exceeds symmetrical upload and download speeds of 100 Mbps. In areas where the geography makes this speed benchmark impractical to obtain, projects are expected to deliver Internet service that reliably meets or exceeds 100 Mbps download and between at least 20 Mbps and 100 Mbps upload speeds.

Deadlines:

  • Communities have a relatively long window of time to expand broadband infrastructure with these funds. Though communities must allocate the funds by December 2024, broadband projects do not have to be completed until December 2026.
  • The first payment was distributed to localities earlier this summer. The U.S. Treasury is required to distribute the second payment 12 months after the first.

Resources:

2. $10 billion to the Coronavirus Capital Projects Fund – aid issued in the form of state block grants to states, territories, and Tribes to cover the costs of capital projects like broadband infrastructure, and provide funding for connectivity devices and equipment. The focus of the Capital Projects Fund is confronting the need for improved broadband connectivity which was exposed during the pandemic. Capital projects must focus on enabling work, education, and health monitoring, including remote options.

Funding Guidance:

  • The guidelines for this program urge states to pursue “projects that involve broadband networks owned, operated by or affiliated with local governments, nonprofits and cooperatives — providers with less pressure to generate profits and with a commitment to serving entire communities.”
  • Although this is not a competitive grant program, states, territories, and freely associated states must submit an Application and a Grant Plan for their allocation of the Capital Projects Fund through the Treasury Submission Portal; for Tribal Governments, the Application also serves as their Grant Plan.
  • $9.8 billion is available to states through the Capital Projects Fund; $100 million is available to Tribes; $100 million is available to freely associated states.
  • Although local governments are ineligible to be direct recipients of these grants, states can suballocate a portion of their award to local governments, nonprofits and private entities.
  • Read more about eligible projects and grant processes here [pdf].

Deadlines:

  • The Treasury Portal for the fund opened on September 24. Applicants will have the ability to apply through December 24, 2021. Once funds are awarded, eligible entities will be able to use them through December 31, 2026.

Resources:

3. $7.17 billion to the FCC’s Emergency Connectivity Fund – federal program to assist schools and libraries as they transition to remote learning by partially funding the cost of Internet services and eligible equipment.

Deadlines:

  • The initial ECF Program application filing window closed on August 13. Due to demand, a second filing window will open on September 28 and run until October 13.

Resources:

Consolidated Appropriations Act – Enacted December 2020

The Consolidated Appropriations Act directed the FCC to establish the Emergency Broadband Benefit Program and directed NTIA to implement three new broadband grant programs. The federal government addressed broadband affordability for the first time with this relief package. CAA appropriated:

1. $3.2 billion to FCC’s Emergency Broadband Benefit Program – federal program providing $50 to $75/month subsidies for monthly Internet service to eligible households. Internet plans regularly costing less than $50 per month will be free to eligible subscribers. If the participating ISP chooses to provide devices, eligible households can also receive a one-time discount of up to $100 to purchase a laptop, desktop computer, or tablet from providers.

Deadlines:

  • Enrollment for the program began in May of 2021. Funding for the program has not run out and eligible households can continue to access the program today. Learn how to apply here.
  • The program will be indefinitely extended if the pending infrastructure package passes Congress.

Resources:

2. $268 million to NTIA’s Connecting Minority Communities Pilot Program – grants available to Black colleges and universities (HBCUs), Tribal colleges and universities (TCUs), Minority-serving institutions (MSIs), and consortiums led by an HBCU, TCU, or MSI including a minority business enterprise or a nonprofit organization in the surrounding community. Eligible equipment includes Wi-Fi hotspots, modems, routers, laptops, tablets, and other Internet-connected devices.

3. $300 million to NTIA’s Broadband Infrastructure Program – grants available to partnerships between states, local jurisdictions, and ISPs to expand fixed broadband service in unserved areas.

4. $980 million to NTIA’s Tribal Broadband Connectivity Program – grants available to Tribal governments and organizations to improve broadband infrastructure.

  • The initial application filing window closed on September 1. The timeline for the program may be extended if the pending federal infrastructure package passes Congress.
  • See NOFO here.
  • NTIA Program Overview Webpage

Editor’s Note: This piece was authored by Jericho Casper, a reporter for the Institute for Local Self Reliance’s Community Broadband Network Initiative. Originally appearing at MuniNetworks.org on September 28, 2021, the piece is republished with permission.

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Congress

House Democrats Fight Against Anti-Crypto Measures in Senate-Passed Infrastructure Bill

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Rep. Anna Eshoo, D-Calif.

August 20, 2021 – Pro-crypto House Democrats pushed back against the Senate Infrastructure Investment and Jobs Act’s inclusion of crypto regulatory language, seeking to make it less broad.

The additions of cryptocurrency taxes aim to generate revenue to pay for part of the infrastructure spending. Its authors intended to reduce fraud in reports to the IRS.

Democratic California Reps. Ro Khanna, Eric Swalwell, and Anna Eshoo joined cryptocurrency enthusiasts Rep. Bill Foster, D-Illinois, and Rep. Darren Soto, D-Fla., in urging to amend the infrastructure bill in the House.

In a letter released on August 12, Eshoo advocated to Pelosi that the House should “amend the problematic broker definition,” describing the existing language as “imposing unworkable regulations.”

But there is some feeling that amendments to the bill in the House may not be necessary. According to a Treasury Department official, the agency plans to clarify its definition of a “broker” to be more specific.

Any amendments to the House would force the infrastructure measure back to the Senate.

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Digital Inclusion

Senators Reintroduce Bipartisan Digital Equity Act

Sen. Murray re-introduces bi-partisan that would provide grants to states pushing for digital equity.

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Patty Murray, D-Washington

June 14, 2021– Three Senators have introduced legislation that would provide grants to states that create digital equity plans.

The proposed legislation, reintroduced on Thursday by Patty Murray, D-Washington, Rob Portman, R-Ohio, and Angus King, I-Maine, would set-aside $60 million to establish a State Digital Equity Capacity Grant within the Department of Commerce that would “promote the achievement of digital equity, support digital inclusion activities, and build capacity for efforts by States relating to the adoption of broadband by residents of those States.”

The funds from the Digital Equity Act in the Senate would be made available to all states, foundations, corporations, institutions, or agencies. The bill was first introduced by Murray in 2019.

Each state will receive a different grant amount depending on a formula that includes population and access to broadband across the state, to be spent within 5 years of receipt.

In addition to funding for states, the bill creates a  $125-million Digital Equity Competitive Grant Program. This program is also for state agencies and institutions but is more specifically geared toward those that are responsible for “adult education and literacy activities.”

Infrastructure portion

A final pillar of the bill is to create more infrastructure and resources for future development of policies that will continue to promote a bridging of the digital divide.

During a press conference on the bill, Murray told the Broadband Breakfast that she believes the bill will be successful because it gives states and local communities the ability to decide what their needs are. “We cannot dictate that in D.C.,” she remarked.

When asked why the bill will create more permanent solutions, she stated that it, “Provides for the diversity of needs that are going to continue to be out there.”

The senators co-sponsoring the bill said they are confident it will make its way into any infrastructure legislation passed by Congress.

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