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U.S. Chamber Policy AccomplishmentsMidyear 2016

CAPITAL MARKETS, CORPORATE GOVERNANCE,AND SECURITIES REGULATION

Disclosure Reform: SEC Votes to Propose Meaningful Reforms

In July, the Securities and Exchange Commission (SEC) released a proposal toeliminate obsolete, redundant, and overlapping disclosures and improvements toother disclosures that are not meeting their intended purposes. This proposal was theoutgrowth of the 2014 Chamber study on disclosure effectiveness.

SEC Enforcement: Adopts Changes to Administrative Proceedings

In July, the SEC adopted amended rules of practices in administrative proceedings.This granted defendants for the first time a right of deposition and certain discoveryrights. This was also the first time that discovery rights have been expanded fordefendants and is significant as more SEC enforcement matters are going beforeadministrative law judges. This change was the result of the 2015 Chamber study onSEC enforcement.

Fiduciary Duty: Congressional Review Act Approved by Congress

In April, the U.S. Department of Labor (DOL) finalized its new fiduciary rule, whichdiscriminates against small businesses and subjects financial advisers to significantnew liability, including private right of action. The Chamber advocated for Congressto uses its authority under the Congressional Review Act to overturn the rule, andboth the House and Senate approved the resolution within the 60-day time frame,sending the legislation to the president. The legislation was later vetoed.

Fiduciary Duty: Appropriations Policy Rider

In July, the House Appropriations Committee reported out of committee the fiscalyear 2017 Labor-HHS Appropriations bill that included a policy rider nullifying theDOL fiduciary rule by removing the rule’s effective date and legal effect. This comeson the heels of strong lobbying by the Chamber for inclusion of a policy rider thatwould reverse the effects of the rule.

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Beneficial Ownership: Introduction of Bipartisan Legislation

The Chamber supported a bill sponsored and introduced by Sens. Tom Carper (D-DE) and Dean Heller (R-NV) on beneficial ownership information retrieval as analternative to legislation that would criminalize and fine businesses of all sizes forfailure to identify and keep current a record of beneficial owners.

Auditing: PCAOB and SEC Host Stakeholders Meeting

In June, the Public Company Accounting Oversight Board (PCAOB) and the SEChosted a meeting of stakeholders to address concerns with rising internal controlcosts resulting from PCAOB enforcement practices, as well as issues relating toauditor judgment and the related party standard. This meeting followed a productivemeeting in August 2015 that was the result of a yearlong effort by the Chamber’sCenter for Capital Markets Competitiveness’ (CCMC’s) Financial Reporting WorkingGroup. This included a letter to the PCAOB and the SEC calling such a meeting, aswell as meetings with PCAOB board members, the SEC chief accountant, and keyHouse and Senate committee staff.

Corporate Governance: Proxy Advisory Firm Legislation

The Chamber helped draft the Corporate Governance Reform and Transparency Act,introduced by Rep. Sean Duffy (R-WI). This bill creates a regulatory structure andincreased oversight for proxy advisory firms. It was approved by the House FinancialServices Committee with a bipartisan vote of 41-18 in June.

Financial Services and General Government Appropriations Bill

The Chamber succeeded in having a number of important priorities included in thespending bill, which passed the House in July. Those priorities included prohibitingpolitical and lobbying spending disclosures for both the SEC and under federalcontracting rules; prohibiting the development of a rule on universal ballot; placingthe Consumer Financial Protection Bureau (CFPB) and the Office of FinancialResearch (OFR) under appropriations; language limiting the CFPB’s proposed ruleon arbitration; language requiring transparency for systemic risk regulation; andprohibiting enforcement of conflict minerals and pay ratio rules.

DEFICITS AND DEBT

Successfully ensured that the pressing need for fundamental entitlement reformremains on the nation’s policy agenda by continuing to advocate and support viableentitlement reform legislation, such as the bipartisan Save Our Social Security Act torestore Social Security to fiscal health.

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EDUCATION AND WORKFORCE DEVELOPMENT

Secured House passage of The Strengthening Career and Technical Education for the21st Century Act (H.R. 5587), which provides around $1 billion in federal support tostates and communities that provide career awareness and preparation programs inK-12 schools and community colleges. Employers are reporting a shortage of skilledworkers to fill in-demand positions. Modernized and relevant career and technicaleducation (CTE) programs, designed with input from employers and responsive tothe needs identified by labor market data, are central to overcoming this skills gap.The legislation focuses on areas where improvements can be made to current law,building on its past successes and enhancing aspects of the Perkins CTE Act, whichwill help better serve both workers and employers.

Secured House passage of H.R. 4901, the Scholarships for Opportunity and Results(SOAR) Reauthorization Act, which would reauthorize the DC OpportunityScholarship program. Created in 2004 with bipartisan support, the program improvesand expands quality educational experiences in all of the District of Columbia’seducation sectors—public, charter, and nonpublic.

In the Senate Labor-HHS appropriations bill, which passed out of committee, theChamber successfully advocated for the reestablishment of the year-round Pellprogram. This program would allow a student attending an institution of highereducation at least half time to receive a second Pell Grant in the same award year.

In the House Labor-HHS appropriations bill, which passed the full committee, theChamber successfully advocated for several higher education policy provisions,including prohibiting the Department of Education from moving forward withregulations defining “gainful employment” and “credit hour,” as well as regulationsdictating how states must license institutions of higher education.

ELECTIONS AND GRASSROOTS ADVOCACY

Elections

Successfully engaged in six Republican primaries: AL-01 on behalf of Rep. BradleyByrne, AL-02 on behalf of Rep. Martha Roby, GA-03 on behalf of Drew Ferguson, KS-01 on behalf of Dr. Roger Marshall, OH-14 on behalf of Rep. David Joyce, and in theIN Senate on behalf of Rep. Todd Young.

Executed large-scale independent media campaigns focused on protecting pro-businessmajorities in the Senate and House.

Launched the U.S. Chamber’s Save the Senate initiative, a program led by prominentRepublicans to generate increased revenue for the Chamber’s voter education program.

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Grassroots

Transitioned to a new grassroots platform that enables greater social media integration,improved data analytics, and incorporation of voter files for online targeted messaging.

Built a sophisticated online Get-Out-The-Vote platform to mobilize the businesscommunity through early voting, absentee ballots, and day of voting tools.

Mobilized grassroots assets to strengthen the business community’s collective efforts insupport of key legislative priorities—including fighting overregulation and defending ourfinancial system.

Expanded grassroots engagement in support of Chamber-endorsed candidates for the2016 election through targeted messaging and comprehensive voter education campaignsemphasizing digital outreach.

ENERGY AND THE ENVIRONMENT

Carbon Regulations for Power Plants

Successfully sought a stay of the Clean Power Plan from the U.S. Supreme Court onFebruary 9, while the rule undergoes legal review.

Energy

Successfully advocated for Senate passage of comprehensive energy legislation, S.2012, the Energy Policy Modernization Act, on April 20 with a bipartisan vote of85-12. S. 2012 would expedite the process for natural gas exports, improve energyefficiency, and prioritize infrastructure for the electric grid and energy storage. Also,the low- to no-cost, no-mandate energy efficiency provisions in S. 2012 would reduceenergy consumption, advance the adoption of new technologies, produce energysavings for businesses and families, and encourage private sector job creation,creating a stronger and more durable American economy.

Successfully advocated for Senate passage of a motion to move to conference withthe House on S. 2012, on July 12 with a bipartisan vote of 84-3.

Permit Streamlining

For the first six months of 2016, the Chamber worked successfully with the Office ofManagement and Budget (OMB) on implementing Title 41 in H.R. 22, the FixingAmerica’s Surface Transportation (FAST) Act, which the president signed into lawon December 4, 2015. Title 41 includes many of the permit streamlining provisionsfrom S. 280, the Federal Permitting Improvement Act. With input from the Chamberand its members, OMB has begun implementing Title 41 of the FAST Act, includingrefining and populating the Federal Permitting Dashboard and establishingprocedures for designating projects as covered under Title 41. Successfulimplementation of Title 41 of the FAST Act will help speed up the permittingprocess for infrastructure projects, enabling jobs to be created and the economy togrow.

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Endangered Species Act Reform

Successfully advocated on the Endangered Species Act (ESA) listing decision of theNorthern long-eared (NLE) bat. On January 14, the U.S. Fish and Wildlife Serviceissued a final 4(d) rule on the NLE bat under ESA. The final 4(d) rule on the NLEbat addressed some of the concerns highlighted by business and industry during therulemaking, including extending certain protections to more industries so that theycan engage in various activities despite the NLE bat’s “threatened” listing.

Energy Savings Performance Contracts (ESPCs)

Successfully advocated for including language in the 2016 Joint Budget Resolutionthat addresses the scoring of ESPCs and Utility Energy Service Contracts(UESCs). Specifically, the Senate changed Congressional Budget Office scoring ofESPCs and UESCs to more closely track how OMB scores ESPCs and UESCs. TheHouse Budget Committee agreed to undertake a study on the scoring of ESPCs andUESCs.

The Chamber’s ongoing efforts to support ESPCs and UESCs helped contribute tothe administration’s commitment to extend its ESPC and UESC initiative with a goalof $2 billion in federal performance contracts for federal facilities through 2016.

Energy Efficiency

Successfully advocated for Senate passage of comprehensive energy legislation, S.2012, the Energy Policy Modernization Act, on April 20 with a bipartisan vote of85-12. S. 2012 would expedite the process for natural gas exports, improve energyefficiency, and prioritize infrastructure for the electric grid and energy storage. Also,the low- to no-cost, no-mandate energy efficiency provisions in S. 2012 would reduceenergy consumption, advance the adoption of new technologies, produce energysavings for businesses and families, and encourage private sector job creation,creating a stronger and more durable American economy.

Successfully advocated for Senate passage of the Sensible Accounting to ValueEnergy (SAVE) Act amendment to S. 2012, the Energy Policy Modernization Act, onApril 20 with a bipartisan vote of 66-31. The SAVE Act amendment would promoteenergy efficiency by allowing voluntary accounting of energy efficiency features inresidential homes as part of the mortgage underwriting process.

Successfully advocated for Senate passage of a motion to move to conference withthe House on S. 2012, on July 12 with a bipartisan vote of 84-3.

Chemical Management Reform

Successfully advocated for passage of historic Toxic Substances Control Act (TSCA)reform legislation, which was signed by the president on June 22. Prior to enactment,the Chamber successfully advocated for passage of H.R. 2576, the TSCAModernization Act of 2015, as well as S. 697, the Frank R. Lautenberg ChemicalSafety for the 21st Century Act. The Chamber continued to advocate for sensiblecompromise between these two very different bills. The result was the first major

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environmental reform legislation signed by a president since the 1990 Clean Air ActAmendments.

Risk Management Program

Successfully advocated for House passage of H.R. 5538, the Department of theInterior, Environment, and Related Agencies Appropriations Act, 2017 on July 14with a vote of 231-196. This included an amendment that would prohibit the use offunds to finalize, implement, administer, or enforce the Environmental ProtectionAgency’s (EPA’s) proposed rule titled the Accidental Release PreventionRequirements: Risk Management Programs Under the Clean Air Act, Section112(r)(7) Risk Management Plan Rule.

The Risk Management Plan (RMP) rule is supposed to be developed in conjunctionwith the Occupational Safety and Health Administration’s (OSHA’s) Process SafetyManagement (PSM) program to avoid inconsistencies, regulatory overlap, andconfusion. The amendment would require EPA to take more time to understand howthe RMP program would operate alongside the PSM program. It would also allowregulated entities an opportunity to review and evaluate those programs to avoidregulatory overlap that adds compliance costs without an accompanying safety orsecurity benefit.

Waters of the United States Definition Change

Successfully sought a nationwide judicial stay of the EPA and Army Corps ofEngineers revision of the Waters of the United States (WOTUS) definition while therule undergoes legal review.

Waters of the United States—House Appropriations Riders

Successfully advocated for House passage of H.R. 5538, the Department of theInterior, Environment, and Related Agencies Appropriations Act, 2017 on July 14with a vote of 231-196. The bill prevents funds from being used to change anyregulations or guidance pertaining to the definition of waters under jurisdiction of theClean Water Act.

Stream Protection Rule—House Appropriations Riders

Successfully advocated for House passage of H.R. 5538, the Department of theInterior, Environment, and Related Agencies Appropriations Act, 2017 on July 14with a vote of 231-196. The bill prevents funds from being used to finalize orimplement the proposed Stream Protection Rule.

Ozone National Ambient Air Quality Standard

Successfully advocated for passage of H.R. 4775, the Ozone StandardsImplementation Act on June 8 with a bipartisan vote of 234-177. H.R. 4775 woulddelay the deadlines for implementing the 2015 ozone standard (70 ppb) so that statescan finish implementing the 2008 ozone standard (75 ppb) before expendingresources on the 2015 standard.

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Successfully helped lead an advocacy effort in which more than 200 organizations,including 75 state and local chambers, sent an April 18 letter to congressionalleadership highlighting the importance of addressing the implementation problemswith the 2015 ozone standard.

Successfully advocated for House passage of H.R. 5538, the Department of theInterior, Environment, and Related Agencies Appropriations Act, 2017 on July 14with a vote of 231-196. Also secured the inclusion of language in H.R. 5538 thatwould delay the deadlines for implementing the 2015 ozone standard (70 ppb) so thatstates can finish implementing the 2008 ozone standard (75 ppb) before expendingresources on the 2015 standard.

FOOD AND AGRICULTURE

Food Labeling/Biotechnology

Successfully advocated for passage of S. 764 in the House and Senate. The billpreempts state and local governments from requiring labels for foods that containgenetically modified organisms (GMOs) and creates a national disclosure program forproducts containing GMO ingredients. The president signed the bill into law onJuly 29.

GOVERNMENT CONTRACTING

Successfully advocated for House and Senate Armed Services committees to exemptDepartment of Defense (DoD) contractors from the onerous labor law compliancerules under the Fair Pay and Safe Workplaces Executive Order.

Successfully blocked the House Rules Committee from permitting an amendment toblacklist inverted U.S. companies from DoD contracts.

HEALTH CARE

Stand-Alone Health Reimbursement Arrangements Worked with congressional staff to get two new bipartisan identical bills introduced

that would render the bills budget neutral. Successfully advocated for passage of H.R. 5447, the Small Business Health Care

Relief Act, to allow small business employers below the employer mandate thresholdto offer stand-alone health reimbursement arrangements (HRAs) to their employeeswithout facing a penalty (June 21).

Consumer-Directed Health Plans On July 6, the House passed H.R. 1270, the Restoring Access to Medication Act,

which would repeal the limitation on the use of funds from certain tax-preferredaccounts for purchasing over-the-counter (OTC) medicines as well as enhance thecurrent rules on the use of Health Savings Accounts (HSAs).

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Protect the Employer-Sponsored Health Care System As a result of active discussions with leadership and members, the House GOP white

paper’s effort to cap the tax exclusion of employer-sponsored coverage is verygeneral and purportedly not designed to provide an offset. The white paper’sproposed change to the current tax treatment is designed so that most Americans’plans would not be affected and to preserve employer-sponsored coverage.

Medicare Advantage Following the submission of comments in response to the Centers for Medicare &

Medicaid Services (CMS) Advance Notice on 2017 changes to the MedicareAdvantage program, CMS issued a Final Notice that instead phases in the biddingprocess for Medicare Advantage Employer Group Waiver Plans over a two-yearperiod. This change will mitigate the cuts in the first year and may provide anopportunity for further changes.

Workplace Wellness Programs With the release of the final rules from the Equal Employment Opportunity

Commission (EEOC) on the application of the Americans with Disabilities Act(ADA) and the Genetic Information Nondiscrimination Act (GINA), the employercommunity obtained some victories, including the right to use both carrots andsticks, the right to have outcome-based programs, and the ability to have spousalHRAs/biometrics with incentives.

IMMIGRATION AND TRAVEL

H-2B Policy Riders and Amendments

Attached provisions to the Senate Labor-HHS Appropriations bill that would allowemployers of H-2B workers to use private wage surveys, allow a temporary need foremployment that can be up to one year in duration (as opposed to 9 months in theinterim final rule (IFR) issued in April 2015), and prevent the Department of Labor(DOL) from exercising newly claimed audit authority over H-2B employers.

Worked with the House DHS Appropriations Subcommittee to successfully pass anamendment including language that extended the returning worker exemption for H-2B workers from last year. If an H-2B worker entered the United States in 2014,2015, and 2016, then he or she would not count toward the H-2B visa for fiscal year2017, providing much-needed relief for our members.

Worked with the House Labor-HHS Appropriations Subcommittee to includeprovisions that would allow employers to utilize private wage surveys and the practiceof “staggered crossing,” giving employers more flexibility regarding when theychoose to bring an H-2B worker into the United States. This is helpful for employersin industries dependent on the weather because it allows them to bring the individualinto the United States when they can make optimal use of that worker.

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Global Entry Expansion in the United Kingdom

The Chamber continues to actively push the Obama administration to expand theVisa Waiver Program and the Global Entry Program to include various countries. InJuly, the administration expanded the Global Entry Program to all nationals of theUnited Kingdom, provided that applicants pass all required security clearances. Indoing so, the British government has expanded the eligibility for U.S. citizens to usethe Registered Traveler Program for easier entry into the United Kingdom.

EB-5 Integrity Measure Package Introduced in the House of Representatives

The Chamber was instrumental in getting Reps. Jared Polis (D-CO) and MarkAmodei (R-NV) to introduce a version of the EB-5 Integrity Act that Sens. JohnCornyn (R-TX), Jeff Flake (R-AZ), Chuck Schumer (D-NY), and Thom Tillis ((R-NC) introduced at the end of 2015, reinforcing the need for commonsense measuresto improve the reputation and operability of the EB-5 program.

New STEM Optional Practical Training (OPT) Rule Finalized

The Chamber was successful in ensuring that the administration’s proposed rule(which kept the STEM OPT Extension alive for employers who hire workers in thescience, technology, engineering, and mathematics or STEM fields) included much-needed clarity on the attestation language. The rule also provided much-neededprocess protections for employers regarding site visits and the termination ofemployment for STEM OPT workers.

Updated Immigration Myths/Facts Document Published

The Chamber published an updated Myths and Facts document in conjunction withits April 19 event Increased Security and Prosperity: The Immigration ReformImperative. The publication, as in the past, analyzed prevalent myths in the ongoingimmigration debate and sought to set the record straight about the positive impact ofimmigration on the American economy.

INTELLECTUAL PROPERTY

International Trade and Intellectual Property (IP)

International IP Index

The Chamber’s Global Intellectual Property Center (GIPC) released the 4thedition of the International IP Index titled Infinite Possibilities, ranking 38economies on IP performance and emphasizing the positive benefits frominvestment in stronger IP laws. The Index is the preeminent source ofcomparative IP law data, with rollout events hosted by GIPC and its partnersaround the world.

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U.N. High-Level Panel on Access to Medicines

GIPC launched a multipronged campaign to counter the overreach of the U.N.Secretary General’s Panel, which seeks to remedy the “policy incoherence”between IP rights and human rights.

GIPC submitted comments to the panel expressing its grave concern regardingthe flawed premise of the panel and procedural issues with the constitution andmakeup of the panel.

GIPC hosted numerous roundtables and briefings with Capitol Hill staffers fromcommittees of jurisdiction, administration officials, and multilateral organizations,including the World Trade Organization (WTO) and the World IntellectualProperty Organization (WIPO).

GIPC sponsored a study by the Hudson Institute, The Patent Truth About Health,Innovation, and Access, which finds that IP rights, in fact, help facilitate access.GIPC shared the results with Capitol Hill, administration officials, and keymembers of multilateral organizations.

Transatlantic Trade and Investment Partnership (TTIP)

GIPC, as co-chair of the Intellectual Property Working Group of the BusinessCouncil for Trans-Atlantic Trade, has been at the forefront of efforts to cementthe U.S.-Europe consensus in favor of IP through TTIP. By engaging negotiatorsin the United States and Europe, GIPC has helped prioritize IP in TTIP,including reaffirming the joint commitment to existing, shared IP principles;working collaboratively to engage third-party countries; and advancing new IPstandards in specific, targeted areas.

Submission to USTR on Special 301

GIPC articulated the IP-related challenges that U.S. innovators face in 17 keyglobal markets and offered specific policy recommendations. GIPC called for theUnited States Trade Representative (USTR) to maintain India’s 2015 designationas a Priority Watch country, highlighted implementation shortcomings on specificIP obligations in free trade agreement partners, and discussed challenges to theU.S. domestic system and backsliding on IP multilaterally.

India

Indian Ambassador Arun Singh participated in GIPC’s June board meeting as partof its campaign to strengthen India’s IP framework and build momentum for aconstructive relationship with the country.

Leveraging work with domestic voices and Indian policymakers, GIPC hasfocused on developing new policy initiatives and working to eliminate harmfulpolicy positions, such as restricting patents on computer-related inventions ormandating licensing norms for Standard Essential Patents.

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China

GIPC led efforts to advocate for improved IP protection in China through theU.S.-China IP Cooperation Dialogue, a team of influential U.S. and Chinese IPexperts. GIPC held two rounds of discussions in January and May, which werewidely attended by U.S. and Chinese government officials and featured in a TVsegment on CCTV and in U.S. media coverage.

GIPC filed a second amicus brief in Chinese court in support of trademark rightsand launched a yearlong research project in support of the adoption of patentlinkage upon request of China’s National People’s Congress.

Trans-Pacific Partnership (TPP)

GIPC had a strong pro-IP presence throughout TPP negotiations, leadingmember meetings with country delegations, hosting educational events, andmaintaining a steady stream of pro-IP media messages.

GIPC’s congressional engagement helped keep U.S. negotiators focused on IPoutcomes consistent with U.S. law, including 12 years’ data exclusivity forbiologics, effective patent linkage, Internet Service Provider (ISP) liability,criminalization of illegal camcording, and criminalization of trade secret theft.Efforts to optimize the outcome of data exclusivity for biologics continue sincethe conclusion of the negotiations.

Enforcement of IP Rights and Appropriate IP Polices in the United States

Trade Secrets

On May 11, the president signed the Defend Trade Secrets Act into law, fulfillinga major GIPC priority and significant win for the IP sector. GIPC led Chamberadvocacy efforts in support of the bill, which created a federal civil cause of actionto further combat the misappropriations of trade secrets. The Chamber played aleadership role in an industry coalition composed of companies and industryassociations in support of the bill. The bill passed with unanimous support in theSenate and virtually unanimous support in the House.

Trade Facilitation and Trade Enforcement Act of 2015

GIPC joined other Chamber divisions to successfully advocate for passage oflegislation (Trade Facilitation and Trade Enforcement Act of 2015, commonlyknown as Customs Reauthorization) to authorize key IP enforcement agenciesand programs, including the National Intellectual Property Rights CoordinationCenter (IPR Center).

On February 24, the president signed the Customs Reauthorization bill into law,the culmination of more than seven years of advocacy on this important bill and asignificant win for GIPC and the IP industries.

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Measuring the Magnitude of Global Counterfeiting

GIPC published a new study that provides a breakdown of the share of physicalcounterfeiting for the 38 economies included in the International IP Index. GIPCtestified in April in front of the Senate Judiciary Committee at a hearing onCounterfeits and Their Impact on Consumer Safety.

ICANN and IANA Transition

GIPC continues to work to ensure that the conditions set forth by the NationalTelecommunications and Information Administration (NTIA) are met beforetransitioning the existing contract between NTIA and the Internet Corporationfor Assigned Names and Numbers (ICANN) to the global, multistakeholdercommunity.

GIPC joined other Chamber divisions in hosting new ICANN CEO GoranMarby to discuss the impending IANA transition and ICANN’s new programsand future plans. GIPC has participated in and continues to monitor the ICANNAccountability Cross Community Working Group.

GIPC commissioned a study of ICANN contractual compliance to gauge industrysatisfaction with ICANN’s role in combating IP crime in the online environment.

IPEC Joint Strategic Plan (JSP) on Intellectual Property Enforcement

GIPC provided input and increased engagement with Intellectual PropertyEnforcement Coordinator (IPEC) Danny Marti on developing the JSP, a newthree-year strategic plan to advance U.S. intellectual property enforcement andpolicy priorities for 2016—2019.

Global Brand Council

GIPC hosted an event in honor of World IP Day in conjunction with theCongressional Trademark Caucus. GIPC continues to work closely with CaucusCo-Chairs Sens. Chris Coons (D-DE) and Charles Grassley (R-IA) and Reps.Suzan DelBene (D-WA) and Randy Forbes (R-VA) to promote trademarks andthe importance of purchasing authentic goods to ensure consumer safety.

GIPC supported the Senate-passed S. Res. 542, designating July as National Anti-Counterfeiting Consumer Education and Awareness Month. TheResolution recognizes the 70th anniversary of the first federal U.S. trademark law,the Trademark Act of 1946, commonly referred to as the Lanham Act.

INTERNATIONAL TRADE, INVESTMENT, AND REGULATORY POLICY

General

Miscellaneous Tariff Bill Reform

Congress, overcoming an ideological debate that barred the enactment ofMiscellaneous Tariff Bills (MTBs) for three years, approved legislation in June toreform the MTB process. Chamber advocacy helped overcome this impasse, allowing

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U.S. manufacturers and other businesses to sharpen their competitiveness byobtaining relief from tariffs on select imports.

Trade Rules for Financial Services Data Flows

Successfully advocated for the administration to extend trade agreements’ disciplinesrelating to the forced localization of data and cross-border data flows to the financialservices sector. Advocacy by the Chamber and others led to revised U.S. positions inongoing trade negotiations and other efforts.

IANA Transition and ICANN Accountability

Successfully advocated for a transition plan for the Internet Assigned NumbersAuthority (IANA) and enhancements to the Internet Corporation for AssignedNames and Numbers (ICANN) accountability that preserve the multistakeholdermodel of internet governance while preventing government capture. As part of theseefforts, the Chamber engaged closely with ICANN senior leadership, submittedformal comments to the administration, and participated actively in ICANNmeetings.

Digital Trade Officers

The Chamber spearheaded business community efforts urging the State andCommerce departments to designate digital trade officers at key U.S. embassies. TheChamber is providing educational programs to serve as training for prospectivedigital trade officers to ensure that issues such as localization and data flows areproactively addressed.

World Trade Organization (WTO)

Information Technology Agreement (ITA) Expansion: Advocated successfullyfor expansion of the 1996 ITA to eliminate duties on $1.3 trillion in informationtechnology merchandise trade, including such products as medical equipment, GPSdevices, video game consoles, software, and next-generation semiconductors. Theexpansion entered into force in July and could support an estimated 60,000 new U.S.jobs. Chamber efforts included direct outreach to officials in foreign capitals and inGeneva and an international communications campaign.

Environmental Goods Agreement (EGA): Advocated for an ambitious reach forthis sectoral negotiation to eliminate tariffs on such products as catalytic converters,clean-running turbines, and products to control air pollution and treat wastewater,providing substantive input to U.S. negotiators on its content.

Country- and Region-Specific Actions

Asia-Pacific: Trans-Pacific Partnership (TPP)

Advocated successfully for the inclusion in the TPP of groundbreaking new rules oncross-border data flows, good regulatory practices, state-owned enterprises (SOEs),due process and transparency in antitrust proceedings, and trade secrets. Assecretariat of the U.S. Coalition for the TPP, the Chamber is advocating for

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congressional approval of the agreement while engaging vigorously with other TPPgovernments to maximize and enforce its commercial benefits, including marketaccess, rules, and intellectual property protections.

China Timely, Science-Based Agricultural Biotechnology Approvals: The Chamber’s

China Center advocated successfully for a commitment by China at the 2016 U.S.-China Strategic & Economic Dialogue (S&ED) in Beijing to revise its biotechregulations, consistent with outcomes from President Xi Jinping’s state visit to theUnited States in September 2015. It also secured a commitment for China tocomplete agricultural biotechnology product approvals in a timely, ongoing, andscience-based manner, following completion of assessments by China’s NationalBiosafety Committee.

Supplemental Bilateral Investment Treaty (BIT) Text: The Chamber’s ChinaCenter advocated successfully for the introduction of supplemental text in the recentround of BIT negotiations in advance of the G20 Summit to be held in China inSeptember. The supplemental text attempts to address unique “characteristics” of theChinese economy, including the prevalence of state-owned enterprises, datarestrictions and localization requirements, lax transparency, and the prevalence ofnormative documents.

Expanding RMB Trading and Clearing Capacity in the United States: Effortsby the Chamber and a RMB Working Group co-chaired by Chamber President andCEO Tom Donohue and former New York City Mayor Michael Bloomberg resultedin a bilateral commitment at the 2016 S&ED to expand RMB clearing and trading inthe United States.

Curbing “Secure and Controllable” Technology Policies: The Chamber’s ChinaCenter advocated successfully for a delay in the implementation of China’s “secureand controllable” insurance regulations. In April, the Chamber submitted commentsto the WTO Technical Barriers to Trade Committee and co-developed with otherbusiness organizations a global, multiassociation letter to the Chinese governmentadvocating against implementation of the Insurance System InformatizationRegulatory Requirements (draft). The draft would require procurement of secure andcontrollable technologies, use of domestic encryption, and localization of data inChina by insurance and affiliated companies.

Cuba: Easing Restrictions on Trade and Travel

Through the Chamber-affiliated U.S.-Cuba Business Council, advocated successfullyfor a civil aviation agreement permitting more than 100 scheduled flights daily to theisland by U.S. carriers, as well as further moves to facilitate dollar transactions inCuba and to further ease U.S. travel restrictions.

European Union

Privacy Shield: The Chamber advocated successfully for adoption of this U.S.-EUpact to facilitate the transfer of data across the Atlantic, benefiting companies of allsectors. The Chamber directly advocated for the agreement before U.S. and

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European negotiators and key EU Data Protection Authorities, held numerousbriefings for members, and spearheaded multiassociation letters to President Obamaand the heads of every EU member state. Also advocated successfully forcongressional approval of the Judicial Redress Act, enactment of which was critical toimplementing the Privacy Shield.

Transatlantic Trade and Investment Partnership (TTIP): Continued to lead thebusiness community’s efforts in support of a robust and commercially meaningfulU.S.-EU trade and investment agreement. This included direct engagement with U.S.and European negotiators, presentations at all stakeholder sessions, and engagementwith European commissioners and members of the European Parliament. Continuedto provide thought leadership on member priorities, including regulatory cooperation,investment, and competition, and serve as secretariat for the broad-based BusinessCoalition for Transatlantic Trade (BCTT).

Revamped U.S.-EU Financial Markets Regulatory Dialogue (FMRD): Helpedlead advocacy efforts to reorganize the dialogue, calling for it to be put on a moreproductive, accountable, and transparent track.

Indonesia Removal of Equity Caps on Foreign Film Production and Distribution:

Advocated successfully for foreign companies’ right to own 100% of foreign filmproduction and distribution in Indonesia. The liberalization was announced as part ofIndonesia’s revised “investment negative list” in February and reflects arecommendation in the Chamber’s 2015 report on U.S.-Indonesia commercial ties.

Delay in Data Storage Requirements: Advocated successfully for a three-yeardelay in implementing a requirement by the Ministry of Communication andInformation Technology that internet-based companies set up local data storagefacilities in Indonesia. The delay was confirmed by the minister in April. TheChamber is continuing to press for full elimination of the requirement.

Mexico

Preinspection Border Pilot Studies: Policy changes recommended by theChamber-organized U.S.-Mexico CEO Dialogue paved the way for binational cargopre-inspection pilot programs to move forward in Q2 2016 at key U.S.-Mexicoborder crossings, including Laredo, Mesa de Otay, and, coming soon, San Jeronimo,Chihuahua.

Launch of Binational Energy Council: The CEO Dialogue advocated successfullyfor the launch of the U.S.-Mexico Energy Business Council, a binational business-to-business initiative to enhance cooperation on energy issues, address regulatorydifferences, and develop coordinated policies.

Myanmar: Easing of Sanctions Advocated successfully for the administration to raise the threshold from $500,000 to

$5 million for burdensome investment reporting requirements for U.S. companiesinvesting in Myanmar, ending mandatory reports for investments below the$5 million threshold.

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Pakistan: Tax Credit for Investment

Successfully aided efforts to include in Pakistan’s annual budget a three-yearextension on a sunset clause allowing a tax credit for investment for new and alreadyestablished industrial undertakings.

Philippines Release of TPP Readiness Assessment: Successfully launched a Philippines TPP

Readiness Assessment in Manila. The assessment identifies areas of Philippine tradeand investment law and regulation that will likely need to be modified should Manilapursue membership in TPP.

Enhanced Information Communications Technology (ICT) PolicyCoordination: In cooperation with AmCham Philippines, advocated successfully forthe Department of Information and Communications Technology Act, whichestablishes a Cabinet-level department of the same name to coordinate ICT-relatedpolicy in the Philippines. The new department and increased coordination of ICTpolicies in the Philippines has been a long-standing objective of U.S. business.

Turkey

Defeated Safeguard Tariffs for Mobile Devices: Following a governmentinvestigation, the Chamber-affiliated U.S.-Turkey Business Council successfullyadvocated against proposed safeguard tariffs on imported mobile devices.

Modified Intellectual Property Legislation: The U.S.-Turkey Business Councilsubmitted extensive comments on Turkey’s draft patent law to the Turkishgovernment, which contributed meaningfully to the final draft legislation to be votedon in Turkey’s Parliament.

LABOR

EEOC Proposal to Collect Compensation and Hours Worked Data From Employers

The Equal Employment Opportunity Commission’s (EEOC’s) proposal has beensent to the Office of Management and Budget (OMB), which is the second phase ofthe approval process under the Paperwork Reduction Act. While we are still workingto defeat the proposal in its entirety, we know that at worst we have achieved thefollowing beneficial changes for employers: (1) delayed initial reporting by six monthsand (2) moved the yearly reporting date to more closely align with the W-2 year,easing the administrative burden on employers.

DOL Persuader Regulation

The Chamber was instrumental in obtaining a clarification from the Department ofLabor (DOL) that the requirements of the new persuader regulation would not beapplicable to contracts entered into before July 1 even if activities under thosecontracts occur after July 1. This clarification allows Chamber members with existingor long-standing relationships with counsel to potentially avoid some of the rule’sreporting requirements.

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Working with the Chamber’s Litigation Center, our amicus brief filing in theNorthern District of Texas helped secure a nationwide injunction preventing thepersuader rule from going into effect.

DOL Overtime Regulation

On May 18, DOL released its final overtime regulation increasing the minimum salarythreshold for exemption from $23,660/year to $47,476/year ($913/week). The salarythreshold will be increased every three years and pegged to the 40th percentile of thelowest income region of the country (currently, the South). Similarly, thecompensation requirement needed to exempt highly compensated employees willincrease to $134,004/year, up from $100,000/year and be indexed to the annualizedvalue of the 90th percentile of weekly earnings of full-time salaried employees.

While the salary threshold is still high, several changes in the final regulation reflectthe Chamber’s concerns and efforts: The salary threshold is less than proposed; theimplementation period goes to December 1 (200 days, compared with the expected60); the automatic update is every three years instead of annually; the salary thresholdis pegged to the 40th percentile of the lowest wage region instead of nationally; thereare no changes to the duties test; and employers will be able to apply commissionsand bonuses toward satisfying the salary threshold up to 10%.

Appropriations

The House Appropriations Committee approved its Labor, Health and HumanServices funding bill for fiscal year 2017, which contains many of the Chamber’slabor and immigration policy rider requests. This includes the following provisions:

Prohibits DOL’s fiduciary rule from going into, or having any, legal effect.

Prohibits DOL from using funds to implement, administer, or enforce its changesto the overtime rules.

Prohibits DOL from using funds to establish an Office of Labor Compliance asset forth in the Fair Pay Safe Workplaces Executive Order.

Prohibits the National Labor Relations Board (NLRB) from using funds toimplement or enforce its ambush elections rule.

Prohibits NLRB from using funds to apply its Specialty Healthcare decision(“micro” bargaining units).

Prohibits NLRB from using funds to apply its Browning-Ferris decision (jointemployer).

Prohibits NLRB from using funds to issue a regulation or directive relating to useof electronic voting in union elections.

Authorizes use of validated third-party private wage surveys, which allowemployers to determine the prevailing wage for H-2B workers. This provisionprotects both workers and small businesses to ensure that the fairest wage is beingpaid.

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Provides employers with the discretion to “stagger” their hires to those peaktimes in the season when those workers have the maximum impact in sustainingAmerican jobs. This is very important in fields where work is dependent on theweather, particularly landscaping, forestry, and seafood processing.

Also, the Chamber worked to limit funding levels of various office andagencies as follows:

Wage and Hour Division: $215.5 million ($12 million less than enactedin fiscal year 2016 and $61 million less than requested for fiscal year 2017).

Occupational Safety and Health Administration (OSHA): $534.4million ($18 million less than enacted in fiscal year 2016 and $60.5 millionless than requested for fiscal year 2017).

Office of Federal Contract Compliance Programs (OFCCP): $100.5million ($4.9 million less than enacted in fiscal year 2016 and $13.6 millionless than requested for fiscal year 2017).

NLRB: $215 million ($59 million less than enacted level in fiscal year 2016and $59.7 million less than requested for fiscal year 2017).

These reductions in the administration’s funding requests can be a proxy for othersubstantive policy changes since the funding requests are often tied to increases inenforcement efforts or specific rulemakings.

In addition to the specific policy riders and funding levels mentioned underappropriations, the report accompanying the Labor-HHS bill made several pointsthat reinforced Chamber positions concerning the Wage and Hour administrator’srecent interpretation relating to joint employment under the Fair Labor Standards Act(FLSA), OSHA’s enforcement-centric approach to improving workplace safety, andOFCCP’s overreliance on statistical evaluations, lengthy investigations, and auditselection methods.

LEGAL REFORM

Asbestos

Secured enactment of asbestos trust transparency legislation in two states: Tennesseeand Utah.

Secured reintroduction of the Furthering Asbestos Claim Transparency (FACT) Act,which would discourage fraudulent claims with Section 524(g) asbestos bankruptcycompensation trusts in both the House and Senate (H.R. 526, S. 357). The Housepassed the bill on January 8, and the Senate held a hearing on February 3.

Secured introduction of the Enhancing United States Trustee Oversight Act (H.R.5618) to allow audits of bankruptcy trusts by the Office of the United States Trustee.

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Class Action Reform

Secured House passage of the Fairness in Class Action Litigation Act (H.R. 1927),which would require that class members experience the same injury as the namedclass plaintiff in order to diminish frivolous class action litigation.

Communications

Launched the Northern California Record and the Florida Record to report on legal issuesin these two troubling regions.

Congressional Oversight

Successfully implemented efforts urging the House Judiciary Committee and othercongressional committees to engage in oversight activities and hearings on the U.S.civil justice system. Key areas included class action and lawsuit abuse, asbestoslitigation, third-party litigation funding, alternative dispute resolution and thepreservation of arbitration, as well as overenforcement, such as agencies urging thatsettlement amounts from companies go to outside activist third-party groups. Intotal, the U.S. Chamber’s Institute for Legal Reform (ILR) testified at or helpedcoordinate five congressional hearings in 2016.

False Claims Act

Supported a blue ribbon panel convened by the Ethics and Compliance Initiative(ECI) that proposed elements for “gold standard” compliance programs—a criticalelement of ILR’s False Claims Act reform proposal. Former Deputy AttorneyGeneral Larry Thompson testified in support of the ECI proposal at a HouseJudiciary Committee hearing.

Fraudulent Joinder

Secured House passage of the Fraudulent Joinder Prevention Act, which aims toprevent plaintiffs’ lawyers from abusing the law to keep cases in plaintiff-friendlystate courts that should be in federal court.

International Issues

Secured improvements to the class action provisions in the European Union’s dataprotection directive.

Lawsuit Abuse

Secured House passage of the Lawsuit Abuse Reduction Act, which would deter thefiling of meritless legal claims and thereby help curb abusive litigation practices.

Over-Enforcement

Spotlighted the problem of overenforcement by federal and state officials with asymposium co-hosted by the National Association of Criminal Defense Lawyers(NACDL), featuring comments by Sen. Orrin Hatch (R-UT), House Judiciary

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Committee Chairman Bob Goodlatte (R-VA), and former Deputy Attorney GeneralDavid Ogden.

State Attorneys General

Secured passage of state attorneys general contingency fee transparency legislation inWest Virginia.

State Reforms

Secured passage of limits on abusive lawsuit lending in Indiana and unclaimedproperty enforcement in Arizona.

Voter Education

Conducted successful voter education efforts in multiple state Supreme Courtcontests.

NATIONAL SECURITY AND EMERGENCY PREPAREDNESS

Global Supply Chain, Customs, and Trade Facilitation Initiatives

Customs ReauthorizationIn February, the president signed the Trade Facilitation and Trade Enforcement Act(Customs Reauthorization), securing more than 20 victories for the Chamber and itsmembers. These victories included numerous items on trade facilitation, bordermodernization, and intellectual property rights (IPR), from de minimis to the creationof the National Intellectual Property Rights Coordination Center.

The inclusion of a provision called the Permanent Internet Tax Freedom Act(PITFA) gave rise to a bipartisan issue with the bill, leading to threats of a point oforder and an effort to kill the bill in the Senate. Unions then began to criticizeprovisions linked to free trade agreements and started pushing to kill the bill as well.The Chamber engaged with a large group of companies and associations to push theSenate over the finish line and send the Customs Reauthorization bill to thepresident’s desk.

In March, the Chamber hosted the commissioner of U.S. Customs and BorderProtection (CBP) for a discussion with members on the legislation’s implementationand the timeline for our main regulatory and reorganization priorities.

De Minimis ValueAfter years of advocacy and legislation, U.S. Customs and Border Protectionannounced in March that the de minimis value will be raised for low-valued importsfrom $200 to $800 and all duties, tariffs, and customs fees will be removed. Thisachievement is a direct result of the Customs Reauthorization and is a large win forsimplifying trade and commerce across borders.

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U.S. Chamber Hosted 4th Annual Global Supply Chain SummitOn May 18, the Chamber hosted its 4th Annual Global Supply Chain Summit. Thesummit’s theme was Integrating Innovation and focused on the future of global supplychains. What issues will matter 3, 5, and 10 years from now? From drones to 3Dprinting to even more traditional issues like border modernization, trade, e-commerce, SMEs, infrastructure, and cyber were discussed.

Global Gateways Trade Capacity ActThe Chamber is working with the Senate Foreign Relations Committee to advancethe Global Gateways Trade Capacity Act of 2015 (S. 2201). The legislation providesresources to implement the World Trade Organization Trade Facilitation Agreement(TFA) and requires the development of a private sector advisory panel. It alsoincludes the authorization for a five-year $250 million pilot program to direct foreignassistance in implementing TFA. The legislation moved out of committee in June, butit needs broader efforts throughout Congress to ensure that it moves withoutcontroversy. The funding comes from the reallocation of funding rather than newgovernment spending, which should help for a smoother passage.

Executive Order on Trade FacilitationThe Chamber developed and supported the president’s executive order on TradeFacilitation from 2014 that brings together the 47 U.S. regulatory agencies with a rolein international trade into a single window. The executive order forces thesegovernment agencies to harmonize regulations, streamline trade processes, andcompletely digitize trade procedures. The Chamber has continued to engage theBorder Interagency Executive Council (BIEC) and the White House to ensure thatthey meet the deadline set of December 2016. There have been ongoing issues anddelays with the system, but we keep working with companies, government agencies,and Congress to stay on track and simplify border trade for businesses of all sizes.

Global Alliance for Trade FacilitationThe Chamber, working in partnership with the Center for International PrivateEnterprise, the World Economic Forum, and the International Chamber ofCommerce created a new public-private sector partnership to promote accountabilityin implementing TFA. The Global Alliance for Trade Facilitation is leading businessefforts for promoting global customs modernization and trade facilitation by bridgingtogether countries and companies to ensure that changes to border management havea commercially significant impact. TFA promotes the streamlining of goods acrossborders by cutting red tape and bureaucracy in ways that could boost the worldeconomy by as much as $1 trillion. In the next few months, that project will roll outfour pilot countries (Ghana, Kenya, Colombia, and Vietnam) to deploy resources tofix border security and trade facilitation barriers around the globe.

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Travel and Tourism

In July, the House and Senate passed the Federal Aviation Administration (FAA)extension with bipartisan support. The language of the FAA extension included theChamber’s priorities for the Transportation Security Administration (TSA). We havesupported both the PreCheck Expansion Act and the Checkpoint Optimization andEfficiency Act. The former mandates the enhancement of marketing capabilities forthe PreCheck program through the use of private sector marketing support. Thelatter requires TSA to develop dynamic staffing models to respond to consumerdemand.

The Chamber supported the creation of the Checkpoint of the Future, a pilotprogram intended to identify a more efficient, automated, and effective passengerscreening processes. These priorities, coupled with the significant funding andresources the Chamber fought for over the past two months, are a good start intrying to solve some of the agency’s long-term problems.

Cybersecurity

The Cybersecurity Information Sharing Act of 2015 (CISA)On June 15, the Chamber testified before a House Homeland Security Committeesubcommittee on CISA. The Chamber said that the CISA cyber threat-sharingprogram is off to a good start. We also said that final CISA and Automated IndicatorSharing (AIS) implementation guidance documents were finalized in mid-June andreceived favorable reactions from industry and some in the privacy community. TheChamber negotiated constructively with the Department of Homeland Security(DHS) and the Department of Justice (DOJ), which authored the guidance, to clarifythe protections for private-to-private information sharing.

SEC Mandate AmendmentIn early June, the Chamber blunted a misguided amendment on cyber and corporategovernance. The amendment to the Senate defense bill (S. 2943) would create a newcorporate governance mandate and disclosure requirements without any hearings orexaminations of the implications of the policies on investor protection, competition,and capital formation. The SEC is already assessing how to modernize boarddisclosures and should be allowed to progress without the amendment movingforward. Instead of adopting this amendment, the Chamber believes that allstakeholders, especially law enforcement and security agencies, should work togetherto address underlying cybersecurity issues.

Export Control Language on ‘Intrusion Software’In March, the administration—at the strong urging of industry—said that it“proposed in this year’s Wassenaar Arrangement (WA) to eliminate the controls ontechnology required for the development of ‘intrusion software.’” The Chamberworked with several companies and associations to persuade the Bureau of Industryand Security (BIS) to reconsider its proposed rule on so-called intrusion software and

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surveillance items under the 2013 WA. The Chamber argued that BIS’ proposal isextraordinarily broad and the export licensing requirements are unreasonablystringent. Although negotiations with WA officials are ongoing, there’s still muchwork to do.

Norms and Deterrence Policy StatementOn June 8, the Chamber’s board approved a policy statement on cybersecurity normsand deterrence. The statement argues that despite the existence of written blueprints,such as ones related to global prosperity and defense, the U.S. cybersecurity strategyis seemingly uncertain to many in the private sector and our adversaries alike. TheChamber believes that policymakers need to refocus national and global efforts toheighten the costs on sophisticated attackers that would willfully hack America’sprivate sector for illicit purposes.

Chamber’s 2016 Cybersecurity CampaignThe Chamber is in year three of its national cybersecurity campaign highlightingcybersecurity threats to small and medium-size businesses, industry-led best practices,information sharing, and cyber incident response relationships with law enforcement.This year the campaign has made regional stops in Detroit, San Antonio, and Chicagoand will host the 5th Annual Cybersecurity Summit at Chamber headquarters inWashington, D.C., on September 27. Each roundtable, which relies on sponsors toexecute effectively, typically features cybersecurity principals from the White House,DHS, the National Institute of Standards and Technology (NIST), and local FBI andSecret Service officials.

Chamber’s Cyber Leadership CouncilOn July 21, the Chamber kicked off year two of its Cyber Leadership Council after avery successful first year. The council essentially formalizes and streamlines the cyberworking group (CWG) by acting as its “kitchen cabinet.” The council, made up ofabout 30 companies and associations, is the exclusive voice of the Chamber.

At a July 21 meeting, Special Assistant to the President and CybersecurityCoordinator Michael Daniel privately briefed members regarding the White Houseperspective on the current state of cybersecurity. He outlined the administration’sthree-pronged strategy to raise national cybersecurity by (1) raising cyber defense inthe public and private sectors, (2) deterring bad actors, and (3) more effectivelyresponding to and recovering from cyber incidents when they occur. Officials fromTreasury, the FBI, and Energy also participated in the meeting.

Chemical Security

Steering EPA’s Risk Management Program (RMP)On July 14, the Chamber successfully advocated for House passage of H.R. 5538, theDepartment of the Interior, Environment, and Related Agencies Appropriations Act,2017, including an amendment that prohibits the use of funds to finalize, implement,administer, or enforce EPA’s problematic rulemaking Accidental Release Prevention

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Requirements: Risk Management Programs Under the Clean Air Act. The RMP rule,issued in March, is supposed to be developed in conjunction with the OccupationalSafety and Health Administration’s (OSHA)’s Process Safety Management (PSM)program to avoid inconsistencies, regulatory overlap, and confusion. But it has not.The Chamber opposes regulatory mandates that add compliance costs without anaccompanying safety and security benefits.

NATIVE AMERICAN ENTERPRISE INITIATIVE

Ensured that contract support costs (CSCs) due to tribes under the Indian Self-Determination and Education Assistance Act (ISDEAA) remain a lump-sumappropriation throughout the appropriations process to ensure that theadministration continues to pay the full CSCs due to a tribe.

Secured a rider in the House Labor-HHS appropriations bill prohibiting funding forthe enforcement of the National Labor Relations Act against any Indian tribe,including any enterprise or institution owned and operated by an Indian tribe andlocated on its Indian lands.

Saw the enactment of the Indian Trust Asset Management Reform Act (H.R. 812), abill heavily lobbied by the Chamber during the 113th Congress.

Worked toward Senate passage of the NATIVE Act (tourism) and House committeemarkup of the same.

PENSIONS

Extension of temporary guidance pertaining to the nondiscrimination rules forfrozen defined benefit plans

At the Chamber’s urging, the IRS added a year to the temporary nondiscriminationrelief previously provided to certain soft frozen defined benefit plans. The relief willbe available through plan years beginning before 2017, instead of through plan yearsbeginning before 2016.

Withdrawal of provisions relating to Qualified Supplemental Executive RetirementPlans in Proposed Nondiscrimination Testing Rules

These provisions would have unfairly burdened our small business members bydramatically increasing nondiscrimination testing costs for many small businessretirement plan sponsors. After meeting with small business members of theChamber, Treasury and the IRS withdrew the provisions before the end of theproposal’s comment period.

The House Appropriations Committee Fiscal Year 2017 Appropriations Bill toInclude Rider on Definition of Fiduciary

The House Appropriations committee included in its fiscal year 2017 Labor, Healthand Human Services, and Education Appropriations bill, a provision that wouldnullify the effective date and legal effect of the Department of Labor’s regulation

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altering the definition of a fiduciary under ERISA. The Chamber advocated for thisrider.

Simplification of Reporting Information Required by the Pension Benefit GuarantyCorporation (PBGC)

In 2015, PBGC attempted to make changes in reporting requirements under ERISAsection 4010 that would have added additional burdens to certain plan sponsors. Atthe urging of the Chamber and others, PBGC changed the requirements to ease theadministrative burdens and decrease the number of plan sponsors impacted.

Retirement White Paper Released

In February, the Chamber issued Private Retirement Benefits in the 21st Century: AchievingRetirement Security. This paper follows a white paper published by the Chamber in2012, Private Retirement Benefits in the 21st Century: A Path Forward. It builds on thesuccesses of those earlier proposals while focusing on the evolving needs of workersand employers as demographics change in the years to come. The paper was releasedat a Chamber event highlighting some of the recommendations and enablingfeedback from the administration, Capitol Hill, and other interested parties.

Formation of the Retirement Security Council

In July, the Chamber created the Retirement Security Council, which promotes therecommendations in the Chamber’s white paper, Private Retirement Benefits in the 21stCentury: Achieving Retirement Security, by focusing on a proactive agenda centered onspecific projects over the next 12 months.

REGULATORY AFFAIRS

Report on Brick Industry Impacts From New Regulations

In February, the Chamber released a new regulatory report, Regulatory Indifference HurtsVulnerable Communities. The report calls on federal agencies to look beyond theirassumptions about the benefits of rules and understand the impact that their ruleshave on real people in vulnerable communities who lose their jobs or businessesbecause of a one-size-fits-all regulation. Based in part on the information in the study,on March 3, the House passed H.R. 4557, the Blocking Regulatory Interference fromClosing Kilns (BRICK) Act, with a bipartisan vote of 238-163. The bill now awaitsaction by the Senate.

Report on Deteriorating Relationship Between EPA and the States

The system of cooperative federalism designed by Congress in the 1970s—where thefederal and state governments work cooperatively to protect the environment—hasbecome one-sided, with EPA often treating the states as its servants. In August, theChamber released the report The Growing Burden of Unfunded EPA Mandates on theStates. The report, based on original Chamber research, finds that states implement96.5% of federal environmental programs. Overall grant assistance to the statesdeclined 29% in real dollars between 2004 and 2015, while EPA imposed $104 billion

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in new annual requirements. Thus, while the cost of EPA’s mandates increased by35% between 2004 and 2015, EPA funding to the states declined by 29% during thisperiod. EPA has been allowed to impose unfunded mandates on states without beingheld publicly accountable. The report makes legislative recommendations formeaningful reforms.

Permit Streamlining

During the first six months of 2016, the Chamber worked successfully with theOffice of Management and Budget (OMB) on the implementation of Title 41 in H.R.22, the Fixing America’s Surface Transportation (FAST) Act, which the presidentsigned into law on December 4, 2015. Title 41 includes many of the permitstreamlining provisions from S. 280, the Federal Permitting Improvement Act. Withinput from the Chamber and its members, OMB has begun implementing Title 41 ofthe FAST Act, including refining and populating the Federal Permitting Dashboardand establishing procedures for designating projects as covered under Title 41.Successful implementation of Title 41 of the FAST Act will help speed up thepermitting process for infrastructure projects, enabling jobs to be created and theeconomy to grow.

Regulatory Accountability Act

Successfully advocated for passage of H.R. 185, the Regulatory Accountability Act(RAA), by the House on January 13, 2015, with a vote of 250-175. The bill wouldmodernize the 70-year-old Administrative Procedure Act and bring additionaltransparency and agency accountability to the regulations development process. TheSenate version of the bill, S. 2006, was introduced on August 6, 2015, with Sens. RobPortman (R-OH), Susan Collins (R-ME), Angus King (I-ME), Kelly Ayotte (R-NH),Ron Johnson (R-WI), John Cornyn (R-TX), and David Perdue (R-GA) as original co-sponsors. On April 20, 2016, Chamber Senior Vice President Bill Kovacs testifiedbefore the full Senate Homeland Security and Government Affairs Committee onThe Administrative State: Examination of Federal Rulemaking. He explained howCongress can regain control of agency rulemakings through passage of RAA.

SMALL BUSINESS

Successfully lobbied for increased funding of $9.32 million for the Office ofAdvocacy in the Senate fiscal year 2017 appropriations bill.

Successfully lobbied for fiscal year 2017 appropriations increases in the House andSenate appropriations bills for the SBA’s Small Business Development Centers(SBDCs) ($120 million, House and $125 million, Senate). State and local chambersdepend on robust SBDC programs since many are housed in chamber buildings andthe funding assists in entrepreneurial development programs for existing andpotential members.

In both the House and Senate fiscal year 2017 appropriations, we successfullyobtained increases in funding levels of $20 million for State Trade and ExportPromotion (STEP) grants under section 1207 of P.L. 111-240 and maintained full

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funding at $12.3 million for the Veterans Outreach, which includes the VeteransBoosts to Business program.

The Chamber successfully advocated for increases in lending authority for the SBA7(a) lending program in both the House and Senate fiscal year 2017 appropriationsbills in the amount of $28.5 billion.

TAXES

Successfully advocated to defeat Schatz amendment to S. 2012, the Senate EnergyBill, subjecting traditional energy producers to industry punitive tax increases.

Successfully advocated for Senate passage of H.R. 644, the Trade Facilitation andTrade Enforcement Act. Provisions included the Internet Tax Freedom Act,legislation banning federal, state, or local taxes on broadband access.

Successfully ensured that the pressing need for comprehensive tax reform remains onthe nation’s policy agenda by continuing to advocate for and engage with relevantleaders on tax reform proposals, including House Ways and Means CommitteeChairman Kevin Brady’s (R-TX) comprehensive reform proposal and Senate FinanceCommittee Chairman Orrin Hatch’s (R-UT) integration proposal.

TELECOMMUNICATIONS & E-COMMERCE

Privacy

Successfully advocated for passage of H.R. 699, the Email Privacy Act, through theHouse with a vote of 419-0 on April 27.

Submitted comments in June to the Federal Communications Commission (FCC)opposing its proposed broadband privacy rule.

In June, hosted a widely attended event, Eye on Privacy: The State of Data Policy,with a panel including the former Department of Homeland Security Chief PrivacyOfficer.

Broadcast

Submitted comments opposing the FCC’s proposed set top box rule. A significantbipartisan bloc of members of Congress now oppose the rule and at least oneDemocratic FCC commissioner has stated publicly in a hearing that the rule is flawedand needs to be reworked.

Broadband

Successfully advocated for passage through the House, H.R. 2666, The No RateRegulation of Internet Access Act.

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TRANSPORTATION

Aviation

Successfully achieved passage of H.R. 636, the FAA Extension, Safety, and SecurityAct of 2016, now Public Law 114-190. This extension will maintain current FederalAviation Administration (FAA) programs through September 30, 2017.

U.S. CHAMBER CENTER FORADVANCED TECHNOLOGY & INNOVATION (CATI)

Internet of Things (IoT)

In January, conducted focus groups composed of Washington, D.C.-based policyexperts on their perceptions of IoT. Found that despite the lack of understanding ofIoT as a concept, there is, in fact, reasonable familiarity with specific IoT products,devices, and services and their benefits. Found that it is critical for companies tocommunicate the specific measures they are taking to protect customers’ privacy andkeep their data secure.

In February, hosted Federal Trade Commission (FTC) Commissioner TerrellMcSweeny for a public forum, Consumer Data Security, Privacy and IoT.

In February, hosted an IoT Working Group meeting with senior officials from theDepartment of Commerce on their efforts and priorities related to IoT technologies.

In March, publicly expressed support for the introduction of the DIGIT Act in theSenate. This act would bring together stakeholders in government and industry toshape IoT policy, ensuring that the United States realizes the full economic potentialof IoT and remains a leader in this next chapter of the internet. Subsequently hosteda Hill roundtable with senior Senate staff on the bill’s progress.

In June, submitted comments to the Department of Commerce’s NationalTelecommunications & Information Administration’s request for comment, TheBenefits, Challenges, and Potential Roles for the Government in Fostering theAdvancement of the Internet of Things. Urged the adoption of farsighted regulatorypolicies that relieve regulatory barriers fostering the growth of IoT technologies andservices.

In July, hosted Reps. Peter Welsh (D-VT) and Bob Latta (R-OH) for a roundtablediscussion on the launch of their bipartisan IoT Working Group with other membersof the House Energy & Commerce Committee.

In July, hosted the FTC’s chief technologist, Dr. Lorrie Cranor, for a discussion onprivacy and security issues related to IoT technologies and services.

Sharing Economy

In March, supported the U.S. Chamber Litigation Center’s efforts to file suit in theU.S. District Court for the Western District of Washington to challenge a Seattleordinance that authorized union organizing of for-hire drivers working asindependent contractors, highlighting that the ordinance would burden innovation,increase prices, and reduce quality and services for consumers.

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In April, penned a letter to the Department of Transportation secretary regarding theAustin, Texas, city council’s decision to mandate fingerprinted screenings of alltransportation network company drivers, despite no evidence of its contributiontoward rider safety.

Artificial Intelligence (AI)

In July, submitted comments to the White House Office of Science and TechnologyPolicy’s request for information, Preparing for the Future of Artificial Intelligence.Expressed the need for expert agencies that specialize in AI and machine learningtechnologies to take the lead on setting standards, while consulting with private sectorleaders in the AI space. Innovation will be strengthened if industry-supported bestpractices are instituted to put protections in place without stifling growth.

Unmanned Aerial Vehicles (UAVs)

In January, launched the UAV Working Group with companies and associationsrepresenting the users and providers of UAV technologies.

In July, hosted the UAV Working Group meeting with the FAA’s senior adviser ofUAS Integration, Major General Hoot Gibson, for an update on UAS rulemakingsand requirements.

U.S. CHAMBER LITIGATION CENTER

As of July 25, the Chamber’s Litigation Center filed 86 amicus curiae briefs on behalf of theChamber, on pace once again to exceed 150 amicus briefs in 2016. The Litigation Center islitigating another 19 lawsuits where the Chamber is a plaintiff, petitioner, or intervenor inlegal challenges to federal or state regulatory action. Here is a brief summary of thehighlights from the Litigation Center’s cases decided so far this year by the U.S. SupremeCourt and federal and state courts.

Positive Results for the Business Community at the U.S. Supreme Court

On behalf of the Chamber, the Litigation Center participated in 13 merits casesduring the U.S. Supreme Court’s October Term 2015, which ended in June 2016. Theside that the Chamber supported prevailed in 7 of the 12 cases that have beendecided. In addition, the Court granted petitions for writs of certiorari in 8 cases inwhich the Chamber supported review.

The Litigation Center continues to shape the Supreme Court’s docket. For theupcoming October Term 2016, the Court has already granted certiorari in 4 cases thatthe Chamber supported. So far, the Chamber has filed amicus briefs in 2 merits casesthat will be heard by the Court this fall.

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2016 Litigation Highlights

Arbitration On the heels of another positive merits decision upholding arbitration agreements in

its October Term 2015, the U.S. Supreme Court vacated two decisions in which statecourts had erroneously refused to enforce arbitration agreements and sent the casesback to those courts to start over. The Chamber had filed a merits amicus brief in thecritical merits decision—DirecTV, Inc. v. Imburgia—and filed an amicus brief in eachfollow-on case supporting the Court’s review. Those cases are Ritz-Carlton DevelopmentCompany v. Narayan and Schumacher Homes of Circleville v. Spencer.

Class Actions

The U.S. Supreme Court reversed a decision of the U.S. Court of Appeals for theNinth Circuit that had allowed plaintiffs to bring a lawsuit in federal court by allegingmerely that a defendant had violated their statutory rights. The Supreme Courtrejected this theory, which has given rise to numerous “no injury” class or collectiveactions, and affirmed that plaintiffs can bring suit in federal court only by alleging anactual, concrete injury. The Chamber filed an amicus brief supporting the Court’sreview and another brief on the merits. The case is Spokeo, Inc. v. Robins.

The U.S. Supreme Court also agreed to review a Ninth Circuit decision thateffectively allows class action plaintiffs to take an immediate appeal of right fromorders denying class certification by voluntarily dismissing their claims with prejudiceand then appealing the resulting judgment. The Chamber filed an amicus briefsupporting the Court’s review and has filed again on the merits. The case is Microsoft v.Baker.

The U.S. Court of Appeals for the Eighth Circuit reversed a district court’scertification of a securities class action in which the Chamber participated as amicus.Applying the U.S. Supreme Court’s recent decision in Halliburton v. Erica P. John Fund,the Court of Appeals held that the defendants had sufficiently rebutted anypresumption of reliance, and that the plaintiffs had failed to introduce evidenceshowing that reliance could be proven on a class-wide basis. The Chamber filed anamicus brief supporting this result. The case is IBEW Local 98 Pension Fund v. Best Buy,Inc.).

The U.S. Supreme Court summarily reversed a Ninth Circuit decision that hadallowed an ERISA “stock drop” class action to proceed. The Court reasoned that theplaintiffs had failed to allege enough facts to show that their ERISA fiduciary hadbreached its duty of prudence. The Chamber filed an amicus brief urging the Court tosummarily reverse. The case is Amgen, Inc. v. Harris.

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Electronic Discovery

The Texas Supreme Court granted full merits briefing of a pair of cases to determinewhether a trial court order unlawfully imposed unreasonable preservationrequirements for electronically stored information (ESI). Such expansive andexpensive discovery orders are frequently leveraged by the plaintiffs’ bar in state andfederal courts to obtain unreasonable settlements. The Chamber filed amicus briefs insupport of the petitions for review. The cases are In re State Farm Lloyds (Ramirez) andIn re State Farm Lloyds (MDL) (Texas Supreme Court).

Employment Law

The U.S. Supreme Court unanimously held that a defendant may be considered aprevailing party in a Title VII action, and therefore be eligible to recover attorneys’fees, even if the case is dismissed on a procedural ground instead of on the merits.The Chamber filed an amicus brief arguing for this result. The case is CRST VanExpedited, Inc. v. EEOC.

The U.S. Supreme Court rejected a Ninth Circuit decision holding that serviceadvisors at automobile dealerships are not exempt from the Fair Labor StandardsAct’s overtime pay provision. In so holding, the Court refused to grant deference to aDepartment of Labor regulation on the subject because it had reversed the previous,long-standing position of the agency, and the agency had not provided a “reasonedexplanation” for its change in position. The Chamber filed an amicus brief in the caseon the merits. The case is Encino Motor Cars v. Navarro.

The Eighth Circuit held that obesity is not an American with Disabilities Act (ADA)disability when it neither causes a significant functional impairment nor is caused by aphysiological disorder. The court rejected the Equal Employment OpportunityCommission’s (EEOC’s) position in the case that obesity should be considered adisability under the ADA whenever it is beyond the “normal” range. The Chamberfiled an amicus brief urging this result. The case is Morriss v. BNSF.

Environmental Regulations

In February, the U.S. Supreme Court issued a historic stay of EPA’s greenhouse gasregulations for utilities (the so-called Clean Power Plan), granting requests filed by theChamber and a coalition of states, trade associations, companies, and advocacygroups. Subsequently, the D.C. Circuit ordered the case to be heard by the full enbanc court in the first instance. The Chamber is leading a broad coalition of businessassociations to challenge the rule. The case is West Virginia, et al. v. EPA.

The U.S. Court of Appeals for the Sixth Circuit issued a nationwide stay of theWaters of the United States (or WOTUS) rule issued by EPA and the U.S. ArmyCorps of Engineers. Although the stay was issued in 2015, it remains in place whilethe Sixth Circuit determines whether the WOTUS rule is lawful. The Chamber is apetitioner in the case, along with several other trade associations and states. The caseis State of North Dakota et al. v. EPA.

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The U.S. Court of Appeals for the Fifth Circuit issued an order staying theimplementation of EPA’s “regional haze” rule for Texas and Oklahoma. EPA admitsthat the rule will cost at least $ 2 billion for companies in Texas to implement in thenext few years. As a result, the rule could force some power plants to go offline anddrive up electricity costs for all businesses in Texas. The Chamber, along with 22Texas state and local chambers, intervened in support of the challenge. The case isTexas, et al. v. EPA.

The U.S. District Court for the District of Wyoming imposed a permanent injunctionon the Department of Interior’s new regulations for hydraulic fracturing (fracking) onpublic lands. The permanent injunction follows on the heels of a prior preliminaryinjunction issued by the same court. The Chamber filed an amicus brief in the U.S.Court of Appeals for the Tenth Circuit in support of the challenges to thedepartment’s fracking rule. The case is Wyoming et al. v. Department of the Interior.

The U.S. Supreme Court held that a determination by the U.S. Army Corps ofEngineers that a property contains Clean Water Act-protected “waters of the UnitedStates” constitutes “final agency action” subject to judicial review under theAdministrative Procedure Act. The Corps’ legal theory had previously insulated itsdecisions from judicial review, which imposed a serious roadblock on the completionof transportation and other projects. The Chamber filed an amicus brief in the case.The case is U.S. Army Corps of Engineers v. Hawkes Co., Inc.

The U.S. Court of Appeals for the Eighth Circuit held that Minnesota’s NextGeneration Energy Act (NGEA), a law that purports to combat global climatechange by effectively banning power generated from coal-fired power plants fromentering Minnesota, violated the Constitution’s Commerce Clause because it soughtto reduce coal emissions occurring beyond Minnesota’s borders by prohibitingtransactions that originate outside the state. The Chamber filed an amicus brief insupport of the challenge. The case is North Dakota, et al. v. Heydinger.

The Texas Supreme Court held that the Texas Clean Air Act preempts a Houstonordinance that “incorporated” the entire state clean air act into the municipal codeand then made each violation of the ordinance a crime. The Chamber filed an amicusbrief in support of the challenge to the Houston ordinance. The case is BCCA AppealGroup v. City of Houston.

False Claims Act (FCA)

The U.S. Supreme Court granted certiorari to resolve whether a private qui tamrelator’s case should be dismissed with prejudice where relator’s counsel violates the“seal” requirement of the FCA. The Chamber filed an amicus brief in support of thepetition, urging the Supreme Court to resolve this important question. The case, StateFarm Fire & Casualty Co. v. U.S. ex rel. Rigsby, will be argued during the October Term2016.

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Federal Preemption

The Chamber filed a lawsuit in the U.S. District Court for the Western District ofSeattle against an unprecedented ordinance enacted by the city that would authorizeindependent contractors who are driving for taxi cab, black car, and transportation-network companies to form unions in order to collude in setting the prices and termson which they will work. The Chamber’s lawsuit claims that the city’s ordinance ispreempted by federal antitrust law and the National Labor Relations Act and is alsobarred by Washington state law. The case is Chamber of Commerce v. City of Seattle.

The U.S. Supreme Court held that ERISA preempted a health claims reportingrequirement that Vermont imposed on third-party administrators of self-fundedERISA plans. The requirement, the Court reasoned, was inconsistent with the centraldesign of ERISA, which is to provide a single uniform national scheme for theadministration of ERISA plans without interference from the states. The Chamberfiled an amicus brief in support of the challenge to Vermont’s law in both the U.S.Supreme Court and in the lower court. The case is Gobeille v. Liberty Mutual Ins. Co.

The U.S. Supreme Court held that the federal Bankruptcy Act barred theCommonwealth of Puerto Rico from enacting its own bankruptcy scheme to protectits municipal entities from creditors. The Chamber filed amicus briefs in both theSupreme Court and in the lower court, arguing that Puerto Rico’s “self-help” schemewas preempted by the plain text of federal law. The case is Puerto Rico v. FranklinCalifornia-Tax Free Trust Fund.

In a pair of cases in which the Chamber filed amicus briefs, the U.S. Court ofAppeals for the Fifth Circuit held that the Texas prompt pay statute, Chapter 1301 ofthe Texas Insurance Code, does not apply to insurers who act as third-partyadministrators for self-funded ERISA plans. The cases are Aetna Life Insurance Co. v.Methodist Hospitals of Dallas and Health Care Service Corp. v. Methodist Hospitals of Dallas

Financial Regulation

The Chamber, leading a coalition of business associations, filed a lawsuit in the U.S.District Court for the Northern District of Texas to challenge the U.S. Departmentof Labor’s so-called fiduciary rule and its related transactions exemptive rule. TheChamber’s lawsuit claims that the department’s rule exceeds statutory authority underERISA, unlawfully creates private rights of action, is barred by the FederalArbitration Act, constitutes arbitrary and capricious agency action in violation of theAdministrative Procedure Act, and violates the First Amendment’s Free SpeechClause. The case is Chamber of Commerce et al. v. Perez.

The U.S. District Court for the District of Columbia struck down the designation bythe Financial Stability Oversight Council (FSOC) of MetLife as a significantlyimportant nonbank financial institution, holding that FSOC acted arbitrarily and

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capriciously in designating MetLife. The Chamber filed an amicus brief in support ofMetLife’s lawsuit. The case is MetLife, Inc. v. FSOC.

The U.S. Court of Appeals for the Second Circuit reversed a $1.2 billion judgmentagainst Bank of America in a precedent-setting case under the civil enforcementprovisions of the Financial Institutions Reform, Recovery, and Enforcement Act(FIRREA). The Chamber, joining with other associations, filed an amicus brief insupport of Bank of America’s appeal. The case is United States v. Bank of America, N.A.

The U.S. Supreme Court granted petitions for writs of certiorari in two casesconcerning causation and standing under the federal Fair Housing Act. In the twocases, the city of Miami claims that banks are liable to the city for the costs of dealingwith urban blight caused by homeowners defaulting on their mortgages, which, inturn, were allegedly caused by discriminatory subprime mortgages underwritten bythe banks. The district court dismissed the lawsuits, which are two of many lawsuitspending against banks brought by cities around the country by the trial bar, but theU.S. Court of Appeals for the Eleventh Circuit reversed. The Chamber filed anamicus brief in support of the banks’ cert. petitions. The cases, Bank of America Corp.v. City of Miami and Wells Fargo & Co. v. City of Miami, will be argued in the OctoberTerm 2016.

Forum Shopping

The New York Court of Appeals overturned a lower court decision holding that,even in the absence of any basis to pierce the corporate veil, a parent company can beheld liable for torts allegedly committed by its foreign subsidiary on the theory thatthe parent is “in the best position to exert pressure for the improved safety products”and is the global “guardian” of the company’s brand. The Chamber filed amicusbriefs in support of the companies. The case is Finerty v. Abex Corp.

The Delaware Supreme Court held that a company does not “consent” to generalpersonal jurisdiction by registering to do business in the state. The “consent theory”rejected by the court would eviscerate the due process limits on personal jurisdictionrecognized by the Supreme Court in Daimler AG v. Bauman, and also it could wellhave the practical result of exposing corporations that do business nationwide togeneral jurisdiction in all 50 states. The case is Genuine Parts v. Cepec (DelawareSupreme Court). The Chamber filed an amicus brief in this case and on the sameissue in nearly a dozen other cases in federal and state courts.

Labor Relations

The U.S. District Court for the Northern District of Texas issued a nationwidepreliminary injunction of the Department of Labor’s new “persuader rule,” barringthe department from implementing or enforcing that costly new rule. The Chamberfiled an amicus brief in support of this challenge and two other lawsuits broughtagainst the persuader rule, arguing that the department had plainly exceeded its

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authority under the Labor Management Relations Disclosure Act. The case is NFIB v.Perez.

Privacy, Technology, and Innovation

The U.S. Court of Appeals for the Second Circuit held that the StoredCommunications Act (SCA) does not apply to data stored overseas. Microsoftobjected to an order requiring it to produce to the U.S. government data stored inIreland. The Chamber, joining with other business and privacy groups, argued thatthe government’s view of SCA, if adopted, would be devastating for the growth ofcloud computing and the competitiveness of U.S. companies in that sector. The caseis Microsoft Corp. v. United States.

The U.S. Court of Appeals for the Third Circuit affirmed the dismissal of claimsunder the Video Privacy Protection Act and the Electronic Communications PrivacyAct brought against Viacom and Google. The Chamber filed an amicus brief andpresented oral argument in support of Viacom’s and Google’s position. The case is Inre Nickelodeon Privacy Litigation.

Punitive Damages

The U.S. Court of Appeals for the Tenth Circuit held that a district court erred inupholding a punitive damages award that was 11.5 times larger than thecompensatory damages award in the case. The court explained that the district court’sdeference to the jury’s award was inconsistent with the level of review required bydue process. The Chamber filed an amicus brief in support of the defendant. Thecase is Lompe v. Sunridge Partners.