[applause] com. Rosenworcel good afternoon. Thank you to everyone for being here today. You got me somewhere between senator and the Deputy Attorney general. So its a treat to be back at the state of the net conference and a special thank you to the Internet Education Foundation for having me and thank you for the good work you do to foster conversation about internet policy. Upfront i think i need a disclaimer. As a commissioner at the fcc speaking at the state of the net Conference Im going to defy some expectations today. Im not going to talk about Net Neutrality. I support Net Neutrality and i voted against last months decision to roll back those rules and i made a ruckus and there is no shortage of place where you can read my heated and sometimes fiery take on what happened. But today instead of talking about the substance of Net Neutrality i want to use it as a launching pad and i want to go big and discuss policymaking in the internet era. I want to talk about some shortcomings in our Civic Infrastructure because i think we need to make real changes if we want to give the public a fair shot at getting through to those who make decisions in washington. That is lofty stuff so let me start small. Let me start with three quick stories about three individuals. First story. Ketchikan is the largest city in southern alaska and by largest city, i mean its got 8000 residents. Ketchikan is nestled right at the entrance to alaskas inside passage, which is the network of waterways which provide access to some of the states most idyllic scenery. Areas known for its thriving fishing industry and for having the Worlds Largest collection of standing totem poles and the misty national monument. No surprise its a regular stop on the cruise ship circuit. The charm of this area brought carl up from the lower 48 when in 1995, he assumed the position of ketchikans chief administrative officer. For more than two decades he has quietly helped run the city ensuring that residents get the service they need from local authority. He was surprised in december, when the local Radio Station found his name on a comment in the fcc Public Record asking the agency to repeal Net Neutrality. As he told the station, he definitely did not submit a comment and poking around a bit more the station found that just shy of 900 comments were submitted to the fcc from little old ketchikan. Unlikely that so many Public Comments were authored by the residents of this little alaskan hamlet. They look fake and something looks wrong. Second story. Jessica lives in new york and thats upstate, about midway between utica and syracuse. It has one Elementary School and one very active Boy Scout Troop and jessica is an assistant , scoutmaster. Its a role she takes seriously. As part of her commitment to the troops, she says she is very careful not to express political positions to the scouts she oversees. So she was surprised and angry to find her identity had been stolen and used to file a comment in the fcc record regarding Net Neutrality. Asked how the hell is this , possible . Third story. Lake bluff is located in northern illinois, a little more than an hour north of chicago. Its a pictureperfect midwestern smalltown complete with a Village Green and a little beach along the shores of lake michigan. In fact, during the first world war, it was proclaimed the most patriotic town in america for the efforts of its residents to support our troops abroad. Donna made her home in lake bluff and in june of this year , she filed a comment in the fcc record and it began hello, i would like to comment on internet freedom. She went on to ask the agency asked it to repeal its Net Neutrality policies, calling them an exploitation of the open internet. Standing for those who knew her because she died more , than 12 years ago. Those are three brief tales and those stories are not unique because people from across the , country from every political persuasion have found their names and addresses and identities stolen and used to file fake comments in the fcc Net Neutrality. They include jeff merkley, usa today communist edward, a magazine columnist deceased duke, as patty 13yearold in northern new york, and a 96yearold world war ii veteran in southern california. At last count, 2 million individuals have been the victims of theft with filings in our record that they never wrote, sent or authorized. These comments are not the only odd and unnerving thing in the fcc record. Nearly half a million come from russian email addresses just just under 8 million comments were submitted from email domains attributed to fakemailgenerator. Com over 1 million comments were designed to make it appear like unique submissions. Everywhere you look there is , something strange. Something is not right. What is wrong here is not confined to the fcc. Let me offer a few more stories from other agencies to demonstrate. A while back, the department of labor proposed a policy that would require Investment Advisors working with retirement accounts to act in the best interest of their clients. The fight is. Rule isiduciary slated for full implementation in 2019. The department of labor is gathering feedback on the likely impact of this role. On one hand youve got Insurance Companies and Brokerage Firms who contend that it could add new costs to make it harder to serve clients who have small nest eggs. Consumer groups point out that without this rule in place retirees could be saddled with , purchasing Investment Products with high commissions that are not actually in their best interests. The back and forth at the department of labor has been fierce. You will comments, find one from Robert Schubert of pennsylvania, making it clear that he opposes this. He writes, i do not need, do not interference in my Retirement Planning. But this filing was a fraud. Confronted with that robert , schumer said he was disgusted people could post comments using his name but his experience is not unusual. A Public Survey conducted by the wall street journal, found that two in five comments involving the fiduciary rule involved stolen names, addresses, phone numbers and emails. The Consumer Financial Protection Bureau has been swamped with comments about payday lending. Last year they adopted new rules designed to curb abuse of the 50 billion shortterm loan industry. This year, they announced they will revisit and reconsider and lets be honest the backandforth here has been messy. So has the Public Record. Marie morales of fresno , california was surprised to see a comment posted under her name. In it, she offered a personal anecdote about how helpful a payday loan was when she had unexpected and expensive car repairs. She knew instantly it was a fake because her family owns an auto body shop and its the one place where she doesnt have to pay. Her filing wasnt the only irregularity in the record that , at last count there were more , than 4000 comments like hers that had been submitted. The securities and exchange is reviewing the fail of the Chicago Stock Exchange Investor Group with ties to china. The Public Record has some curious filings including one from someone on behalf of the Global Investigative journalism network. It raised concerns about the proposed Ownership Structure and suggested it would facilitate money laundering, which sounds bad. The only problem is that dave kaplan, the executive director of the network, says the letter was a fraud but you can still , find it in the fcc record. Final story. The federal Energy Regulatory Commission Approved the Nexus Natural Gas pipeline last year. This is a 255 mile pipeline that will carry natural gas from the users in places like ohio and michigan. While evaluating this pipeline ferc asked for comments on its merits. Land owners and residents along the nexus Pipeline Route werent shy about offering their concerns. But mary england of rising sun, ohio was surprised to see that her husband glen sent a letter to ferc supporting the pipeline in the buckeye state. Her surprise was more than substantive, because her husband died in 1998 and this was by no means the only filing in the record. Because others in ohio and michigan have complained to ferc that they did not write the pro pipeline letters posted in their names. Ok. That is a lot of stories. Lets review. We know that five agencies, the fcc, the department of labor, cfpb, the sec and ferc have had problems with stolen identities and fake comments in the Public Record. I suspect they are not the only ones. The administrative procedure act is a law from 1946. As attorneys and all of these agencies know its the law that sets up the basic framework for rulemaking. When the Government Agency proposes new policies, it has a duty to give interested persons an opportunity to voice their opinion. After considering these Public Comments agencies may adopt , final rules and they do so when it includes a general statement for a basic purpose. Of basis and purpose. That structure has worked well for decades. Its a rocksolid foundation for so many Agency Rulemaking that Seek Public Input for its decisions. Over time, when we have identified deficiencies in this framework, we have made adjustments. As a result in the regulatory 1980, flexibility act amended the administrative procedure act to make sure agencies consider , the impact of the proposal on rules on Small Businesses. We have other laws like the paperwork reduction act which doesnt really produce paperwork , but anyway, we have an Unfunded Mandate which trains new comments in the concerns that what we are facing now does not reflect what is come before because its apparent the , specific infrastructure we have for accepting Public Comment in the rulemaking process is not built for the digital age. As the administrative conference of the United States acknowledges, while the basic framework for rulemaking from 1946 has stayed the same that hasnological landscape evolved dramatically. No kidding. The problem may seem small but i , think the impact is big. Administrative decisions made in washington effect so much of our daytoday lives. They involve everything from internet openness to Retirement Planning to the availability of loans and the Energy Sources to power our homes and businesses. So much of the decisionmaking that affects our future takes place not just here in congress , but in fact in the administrative state. The American Public deserves a fair shot at participating in those decisions. Expert agencies are duty bound to hear from everyone not just those who can afford to pay for expert lawyers and lobbyists. The framework from the administrative procedure is designed to serve the public by seeking their input but , increasingly they are getting shut out. Our Agency Internet systems are illequipped to handle the mass automation and fraud that is corrupting our channels for Public Comment. Its only going to get worse. The mechanization and weaponization of the filing process has only just begun. We need to do something about it, because ensuring the public has a say in what happens in Washington Matters because trust in Public Institutions matter. Last week, edelman released its annual trust barometer and reported that only one third of Americans Trust the government. That is a 14 percentage point decline from last year. Fixing that decline is worth the effort and we can start with finding ways to give all americans, no matter who they are where they live, a fighting chance at making washington listen to what they think. We cant give into the easy cynicism that results when are public channels are flooded with comments from dead people, stolen identities, batches of filings and commentary that originated from russian email addresses. We cant let this delusion delegitimize washington and he wrote a public trust. And erode public trust. We have got to brace ourselves and strengthen our Civic Infrastructure to withstand what is already underway. This is true across regulatory engine agencies and our political landscape. If you look for them you will , find uneasy parallels between regulatory proceedings and the barrage of posts on social media that was part of a conspicuous campaign to influence our last election. There is a concerted effort to exploit our openness. It deserves a concerted response. This has not yet happened. Asked the fcc, for instance, anyone who was found their names stolen in the Net Neutrality record has been advised to file another statement to that effect in the public docket. Let me put this as gently as i can. This is not a scalable solution. The fcc has refused to work with state authorities like the attorney general of new york, who found that tens of thousands of residents in his state as well as in california, georgia, missouri, ohio, pennsylvania and texas have had their identities stolen. This is not right. For starters, i think it is at odds with the basic spirit of cooperative federalism. More critically the steps to , identities like this is often a violation of state law and for the record its also a violation of federal law. Section 1001 of title xviii makes it a felony for any person to knowingly or willfully make any materially false fictitious false, fictitious or , fraudulent statement or representation in matters before the federal government. It makes the unwillingness of our regulators in washington to address the fraud we already know exist especially chilling. For the good news earlier this month the Government Accountability office announced in response to an announcement , they would be reviewing the extent and pervasiveness of fraud and american identities in the federal rule making process. Thats a start. Stay tuned. But its not enough. We need a lot more investigating from the department of justice, the federal bureau of investigation, because we are looking at a systemic effort to corrupt the process by which the the public participates in some of the biggest decisions that are made in washington. If we want to build the Civic Infrastructure to withstand we its origins, we need to take out the rogues that are stealing identities, cheating the public and destroying our trust. ,plus, we can take pretty basic steps to improve rulemaking processes. Every agency should perform its own internal investigation. Every agency should consider simple security measures, like factor authentication, that enhances security without the decreasing of public participation. Every agency can do something oldfashioned. They can hold public hearings. But the truth is we need to get started because thats what Good Governance and digital age democracy requires. Thank you. [applause] across the agencies that you mentioned, with all of those different phony comments being made on such disparate issues, is there any thinking on who is behind it . Did somebody buy a botnet, a fraudnet . Was it russia . Taking an issue aside at random, or is there a deeper conspiracy or is there a deeper conspiracy just to mess things up where it , was people with an interest in the issues at hand finding a way to submit all those fraudulent comments . Com. Rosenworcel those are terrific questions. I think my point right now is that i dont have an answer. I think it is incumbent on agencies in washington to get to the bottom of it. Well have to build systems that can withstand this assault. In order to do so, we need to know where it is all coming from. I silenced you. Almost. Thank you for your presentation. I work at the georgetown back center for social research and innovation. Project, a research which is helping the congress on how to outsource extra capacity into our district. You might note that crowd law is happening around the world. Actually, the United States is behind other countries when it comes to inclusivity and the process, at the executive branch level and certainly in congress. Have you had a chance to examine any of that and see what might matchup or integrate best with the american system . I know for example that parliaments have a much easier time doing this kind of reconfiguration than congress, which is the most complex, powerful, complicated legislative creature in the world. That is the question. Where are your favorite examples and how can we see ourselves in the scheme of things . Com. Rosenworcel these are all good questions. Most agencies in washington are constrained right now by this law from 1946. The administrative procedures act. Have been madet to the law over time have been fairly modest. They fixed the failure to look closely at how Small Businesses are impacted by proposed rules and things like that. What i am talking about is more fundamental. Every agency that interfaces with the public and creates what is democratizing, the opportunity for the public to themsomething by virtue of having a broadband connection, we have to rethink that interface. Accessible to all, but we need to think about fraud intervention. Ways ton to any and all come up with a good way to do that. I am jane smith paterson. Speaking of networks, is it possible for you and the fcc to think about additional funding for health care connect, being as though we are at a cap right now . We have so many elderly across getting healthd care to all of them is going to be an issue. Com. Rosenworcel youre absolutely right about that. There was a time when telemedicine was reserved for our most rural areas where it was hard to get doctors and specialists to show. But the truth is telemedicine is now part of mainstream modern medicine. It has extraordinary benefits. The fcc, late last year started a new rulemaking to update its existing moral Health Care Care to try and address growing demand, and think more thoughtfully about how to push these dollars out there. There is an important proceeding under way right now and it is really important. Thank you, commissioner. I am a graduate student at m. I. T. Im curious, given your stated on this crosscutting expertise on fraud detection and improving systems across thecies, how should we find position and talent needed to do this across the federal government, given this data science and investigative be doing the deep background work and also the Technical Work necessary to shore up the system . Com. Rosenworcel youve probably heard it before, but i think we need more technologists in the United States government. It is how we interface with the public right now. It is more of just meeting more of them in volume. We need them to be participants in the most basic decisionmaking. Coming up with the perfect package of policies is pretty useless if you can figure out a good way to make sure the public can access them and participate them. I think that is a longterm project, but it is my hope that we develop more programs to bring more people into government and Public Service with deep technology backgrounds. With the comments at the fcc, how long did it take you, since the comments were coming in for a very long time, for you to figure out that when you are getting 9000 comments from osh kosh, something is wrong . Com. Rosenworcel this is a great question. The honest truth is i gave you what i understand it to be today. But what we found, in my office was just a handful of people and was limited to our research capabilities. We need more experts on the outside coming through that record and identifying problems. Combing through that record and identifying problems. I have made very clear, along with the help of folks like the new York Attorney general, that we have 2 million individuals whose identities were stolen. You can do some easy counting to figure out how much is from foreign addresses like i described. We need many other outside experts to look at this record and help us identify the problem that we should focus on, because i think there is more here than even what i have described to you today. I think it is incumbent on us to get to the bottom of it. Thank you so much. Com. Rosenworcel thank you, tim. [applause] [captions Copyright National cable satellite corp. 2017] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] coming up, the new director of the secret service discusses modernizing the agency and its expanded mission. Then just before 5 p. M. Eastern, one of our landmark cases. And six 30 at 5 00 p. M. , new landmark cases. Tonight, the ceremony unveiling the portraits of former president barack obama and first Lady Michelle obama. Here is a preview. Artists hadof these to walk into the oval office yikes and i almost wanted to. Tart by apologizing just to get this job they had to come to the white house and get andled by the president first lady. Im sorry. Im sorry. It was not lost on us how was. Ving this experience when amy came in and it was her turn, i have to admit i was intrigued. I was intrigued before she walked into the room. Work and i was blown away by the boldness of her colors and the uniqueness of her subject matter. So, i was wondering, who is this woman . Mr. Obama i am not somebody who is a great subject. I get impatient. I look at my watch. One of those pictures must have worked . Why is this taking so long . So it is pretty torturous just try to take a picture of me, portrait. Paint a i will say working with kehinde was a great joy. ,e and his team made it easy and they in the tradition of a lot of great artists actually cared to hear how i thought about it before doing exactly what he intended to do. [laughter] the complete ceremony, including remarks by former president obama and the first lady from the National Portrait gallery tonight at 7 30 p. M. Eastern. President trump appointed as secret service director. He talks about fighting cyberi
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