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For questions from audience. I had a couple of questions weve received over the internet. For the last 15 minutes or so lets talk about kind where the Roberts Court is and where the Roberts Court is going. We 15 years of the Roberts Court. What do you guys think of the most significant decisions the court has issued during that time . Citizens united, the heller case, marriage. You are clearly ready for that one. I think also juvenile Death Penalty. You know, the juvenile Death Penalty and the rulings on whether you can execute somebody who may not be technically, but is challenged. Cutting back on the Death Penalty in cases not involving murder and cutting back on juvenile life without parole. So the court has narrowed harsh punishment across a number of dimensions spent except for the Medicaid Expansion these. Its basically like an overruling of [inaudible] south dakota. Right. Be interesting to me, the Court Decision about suits unite this but because of the court held as a legal matter which is a pretty big deal but because i just some sense of public outrage about the decision and Public Engagement and interest. I dont know how many people know this, i know it because i sit by the court has had like a public protest in the court about Citizens United. A couple of groups would prefer stand up during oral argument and making comments but we want to take the country back in we are unhappy with Citizens United. I can they get any other issue aside from there was a lone person in the gay marriage case in which some had come into the court. That is not cool at court. I dont know what the old chief wouldve done. Were any of them members of know. One of them brought in the spin camera. Does a camera and corporate Citizens United is interesting because theres been this reaction thats almost like the reaction to bush v. Gore of the case of come people up in arms and perhaps concerned about religious and of the court, the court having an agenda. All of that is a function of the coverage because you dont think people read the ongoing decisions . May be people speaking are you blaming adam for his protest . No. Im blaming its Editorial Board may be. No, i think they are these things that could causing to turn into cause celebre. The president of the United States, [inaudible] when you have that level of politicization by the president of a decision you should be shocked that people who are followers and to agree philosophically with them think that this is really a big deal. I think we the decision is been caricatured and blame for a lot of stuff that cant be blamed for. But it does seem incredibly detailed and. Just the other night Justice Ginsburg was asked about what was most disappointing thing the court did in her 22 years on the court. You mightve thought bush v. Gore but she said Citizens United. It is a flashpoint and a kind of shorthand, underserved shorthand for the way our money in elections in general is unsatisfying to me people, and people liked it when Citizens United for many things that simply cannot be blamed for rich people are free to spend my before and after Citizens United. If theres a problem, that they will be the problem in cities and i cannot be blamed for the. Citizens not endorse the Disclosure Requirements before it. Theres not enough disclosure, its not Citizens Uniteds fault. The think Justice Ginsburg cited since united in part because of the way that went down with the court granting reargument and reportedly a lot of back and forth about how broadly the court was going to write the opinion . Thats an interesting topic. Im sure she wasnt crazy about what happened but it dont think thats the reason she cited her i think she cited it because its a way to speak to an audience. You say Citizens United and the left side of the audience, heads explode. Let me raise one last topic ive been throw the vote open for the remainder of our time. Weve had 10 years of the Roberts Court. What to do next year 10 years will click . Justice kagan and what role she will play. She supertalented. I worked for her when she was solicitor general. Its shocking how quickly she gets issues, especially when youre solicitor general. Theres things you probably never worked on before, some arcane immigration things the false claims act or Something Like that. Shes the kind of person explained issue to her and she just gets it so quickly under questions and oral arguments are so good. When you look at the first five years shes been there and the decision shes written and how should perform an oral argument, shes started out very measured in almost with the chief ward. I coming to get my bearings and ask some good questions and look around and im going to defend the other justices and see whats going on. She hasnt made a strong stand and love cases present Justice Sotomayor has. Shes very talented. She could do a lot for a very long time. It would be interesting to see what she does. Is the direction going to be decided by the next president ial election . Yes. Yes. Well, that was easy. Perhaps should argue old enough to vote. Now, mikhail. [laughter] we think about the court, winning the court after the chief justice micheel doesnt have to suppress your votes last night. The gloves are off. Im just going to leave at this point. Courts are named after chief justices of the chief justice is really controlled the court. With the Obama Administration the president runs the executive branch and is responsible for what goes on. With the Roberts Court hes facing the prospect you could be in decent if the president ial election comes at any particular direction. That hasnt happened in a while. The person in question has one vote and with personnel, that person, ive lost track of my syntax. The personnel of the court changes. To what extent do you think the possibility of a dramatic change in direction for the court has kind of influence achieves a thinking. I dont it has. I was making the point earlier if you instrument he would be writing really broadly right onto areas, but he isnt. Either he has a lot of confidence in the wisdom of the American People, or he doesnt think this is the appropriate role for the court. I think theres a lot to be said for that although he may have been even longer time horizon in the cruise administration. That really is low. Why not the trump administrati administration . Is 56, he will be with us for another 30 years. Anhe may be playing a longer gae than you think. In terms of the issues that the courthouse on the docket even in the coming year, whats left for the court . It feels like the court while touched on all of the highest profile issues of constitutional and public law. Yet to take over. Foreign relations. War. Spent the next time one person one vote. We have affirmative action. We have Public Sector unions. We are lucky to have abortions. I would think the right side of the court is headed in the voting in most of those cases. So the texture of the next term will some very important business cases in front of the court as well. Theres a lot of time at this point of view gilad what the court has granted certiorari on. It looks like its going to be a boring trigger not much will happen. Think of a report this time last year, they have decided gay marriage case and it shaped up to be an insanely future. Weve already got some pretty high profile stuff. Decisions will conduct in the midst of the president ial campaign. We have covered quite a lot of ground so far, and what to do plenty of time for questions because were being filmed, we will repeat the question in the i suspect everyone will be able to haven. I know there was a lady here who is patiently waiting with a question from earlier. [inaudible] that seems to be that Public Employee speech seems to be an era of turmoil for the court. Im hoping that theyll can comment. The question was about the garcetti case and a Public Employee speech in the course attitude towards the. Its always been unpopular with some members of the case. You remember apollo i case where there was a think like a marshall or somebody in Law Enforcement who had been fired because when president reagan was shot she said i hope if they go after him again they did in and she was like the court upheld the view that she could not be fired for that statement, prompting just screwed up one of the memorable opening lines of the sensing the question in this case is whether, however she was, whether she can ride with the cops and robbers. The answer is yes, you can do think that are members of the court who have been very skeptical for a long time, things sort of like around the 1960s. I think it was one of those cases that the court gives all lit up fisheye, like well okay, but. On the other hand, we will see whether they have it in stages to boot term. They want to say a bit about the . So in a case called the court has now for the third time its been thinking along the margin but it seems that will directly address the following first and in the question of whether if you work in a unionized shop for the government you dont have to join the union. But you do have to pay fees to the union for collective bargaining. Doesnt violate your First Amendment rights to be made to be compelled to pay such fees if, say, you dont think you deserve more money. You think the government should be spending more money on your pensions. [laughter] adam was making sure the gale was still awake. I dont think its crazy. I think collective bargaining does have a speech aspect to it. Just as you cant come if youre a nonunion member you cannot be compelled to pay fees for political activity. The question and the governmental setting is that negotiation with the government views all of it like lobbying and feels a little stinky sometimes and doesnt violate your person and rights . Whatever the legal answer is, the consequences of a decision against such arrangements, the ability of people to opt out of being members of the public Student Union and take a free ride on the collective bargaining activities would really devastate Public Sector unions. And the democratic party. That is one of the cases you talk about in your article with the courts really invited the challenge. Yes. In harrison versus quinn and then there was an earlier case to dissipate campaign on the part of justice alito. Hates this stuff. Justice kagan wrote the dissenting opinion defending the abdu principle. It was funny because alito did not five vote. The voting probably he did have was a leaders to give up the decisions and his abdu horrible decision. For 70 bits he went on about how horrible it was but he said that they were not going to overlook the nuclear this case on some of the ground. Justice kagan said they couldnt stop saying and sentencing in which they hated this but not today. Other questions . Spirit i found it striking, you talk about how this is a very legal court, the minds talking in legal terms. Yet the public seems to regard as a very politicized court. [inaudible] you talk about how they dont really look at the standards, they dont fit into the stand and maybe talk about corporations as persons. I dont want you to overstate citizens union, but what do you think the disconnect is between the court that is practicing and the Public Perception of this court as a highly politicized, basically party driven court . Two things going on. One is that most cases before the court involved strictly legal questions in which smart lawyers, meaning the justices, are making inferences from legal materials. The ordinary argument looks, doesnt like politics. It looks like law of the cases on the front page of a newspaper can debate the controversial social issues cases, and those local a bit more like politics than law. The other thing we havent talked about its distinctive about this court is this is the first court ever as closely divided in which the party of the appointing president perfectly predicts the ideology of the voting. So think back, stevens, souter, warren, brennan, blackmun in one direction, byron white of in another direction. The fact that a president appointed you wouldnt automatically tell you where you are in the ideological already. All five republican appointees are to the right of all four democratic appointees. I think i can i think i cant help but influence Public Perception. Perception. Do you think that bothers the chief justice . It feels like its often trying to fight this perception. He hates it. I wonder whether it might not have played a role in the first Affordable Care act case where, having on the other way and had the five republican appointees in an Election Year struck down the signature legislative achievements of a democratic president , whether that might not have affected the perception of the court. I think that cannot be right. Looking at the case at the time i thought they wrote perfectly acceptable opinions upholding to act on Commerce Clause grounds. If the chief are looking for a way to uphold this for some sort of mature purpose, it was a lot easier and a lot more plausible to say than to write an opinion saying this is beyond Congress Power spirit so why did he do that, try to . I think you can talk to two audiences at once. Headline is chief justice uphold the for both character of the state is medicaid, he did what he could. May be. The fact is that i do think that if you are looking to do that, he would have done a much simpler opinion. The fact is it would have been a lot more plausible. Theres a fairly decent argument a lot of what he said, doesnt matter, im not sure what he did anyway. Other questions is yes, sir. [inaudible] with the Supreme Court take newman speak with pages filed two days ago, i looked at the petition. Possibly just maybe you could say with the cases. This is a case, after the Second Circuit court of appeals for insider trading. To disclose, i have so those affected by but is not on the case friday particular the office to take into account. For many years the Southern District of new york has been pushing this question of liability your the question in this case is whether somebody who had a tip, claims the government, from an unsupported source should be prosecuted criminally and sent to children its a little complicated by the fact theres a lot of people in the chain to stock analysts, and theres a Certain School of you that says if you are in that sort of calling, you actually benefit in the market by giving information on the market and all that. The law says of course that you cannot go out and bribe somebody basically to get a tip. At the core of this particular case is whether if you had information leakage that appeared to be in a social context and was not obvious to any quid pro quo and did not go down to the financial benefit, the person who ultimately got prosecuted did not know that there have been any sort of financial benefit, whether that is enough to persecute someone, to the Second Circuit in what was viewed at the time as a change in the course attitude towards these cases basically said no. The Second Circuit was concerned by some of the factors that motivated the other services case, that the government lost some years ago because theres a lot of goofiness about prosecuting somebody if he benefited by being liked by the person. The government is pushing a love in sync these sorts of social relationships are not benefit to the summit in jail for 20 years. Every time the government follows files, you have to take service with possibly the court will look at it very seriously. Is there any chance the government could win it speak with you know, this is one of those cases in which the left side is proenforcement. You sort of view these people as polluting the market and had to be tough on criminals. Its hard to tell because the actual issue underlying this particular case has a lot of ifiness. I argue the one thing which they could all agree with like okay, you can make up any crime and call it on the surface its fraud. I think the position that the government will have will force into that sort of box again we have to say if you met the guy at the church intellect and butchered and that was the benefit that you cant, thats enough for family. Thats one of the tips in that case. I didnt mean to interrupt. A delightful piece of the case, theres a circuit split and that split arise who sits on the Southern District in every court for the Second Circuit and is attention happened to be visiting as a gent on the ninth circuit, and their he decided he would decide that case at odds with the quartet ordinarily supervises them. To be fair, if you read the opinion its really overblown because he said we dont know if we agree on behalf of the ninth circuit, but at the end it doesnt matter. Im not even sure its not conflict spirit we are not going to ask nicole to express a view on that. That is a because the which you wish for aspect. I think there is a possibility upshot of the petition is affirming some of the decisions below. I think thats not unlikely. Other questions . From Yesterdays Program on which one . Now, we have 20. There was a concern among the panelists that the government had been sharper enforcement [inaudible] this was also something, repeated question for the office, the question is about the rhetoric on the court. This is also something i would Justice Stevens in his speech to one of the sections talked about yesterday as well. Id like your comments on that perception and, you know, what would be the roberts view . As a reporter, a more quotable nasty stuff, the better. And i encourage it. [laughter] that sounds to me like one of those, you know, incalculable aphorisms from a fortune cookie. Which would put my head in a bag and agree with you. [laughter] even for a fifth vote . Cases like in the deep steps of Justice Scalias dissent. I dont think its changed that much. I think theyre certain members of the court who tend to be more costly, especially when theyre in distant. That hasnt changed. Jesse scalia was a happy note of the Rehnquist Court Justice Scalia. I think it is possible that his dissenting opinion in the samesex marriage case was touched beyond what even he has been but not much more than a touch. And i think in that case its probably reflects wonders of deepseated frustration with anthony and kennedy. But i dont think theres that much more beyond what was done before for either no darling of the members of the court who routinely engage in that sort of rhetorical writing. Im going to disagree. Im going to exercise the moderators prerogative and disagree. Did you think of any members of the court have been pretty caustic, including actual the chief justice who who specializes who do we think we are . That was the it wasnt directed at colleagues. Justice kagan has been fairly sharp in her defense dissent. She doesnt write very many of them. I agree. A couple sentences in the marriage case were very personal and under deeply wounding and were not about the quality of the nature of the argument but about the quality of the writing as you put it pop is an egotistical. That was Justice Scalia though, not the chief. Five lawyers think they can do whatever they want. Thats not something enormously about your colleagues. I thought the chief justice the venue was perfectly civil and very do you think, again at uc irvine has written an editorial and ive been up as we said they think this has a corrosive effect on the profession . Do you agree with him . I think it encourages people in the trenches who are already not known for being civil to each other for so thinking that this is a good thing to be done. The one thing about justice, is he can write in a way that is enjoyable and you can have a guilty laugh out of. Where most people try to emulate him in the discovery dispute is just nasty. And so it may be that people take their cue from that, its not helpful to the profession. Maybe it elevates the quality of the incivility. [laughter] the other things we havent talked about which was at least surprising to me watching surprising to me watching the court was the way they handled the Death Penalty case. I was a very heated oral argument. That was a pretty he did time when the judge, justices were giving their opinions, read from the bench. Sitting there it was one of your times ive been in court and ive been uncomfortable that they really seemed unhappy with each other and this question seems to be Something Like shouldnt you, person who is about to get executed, be executed because someone else is trying to ban the Death Penalty. Those kinds of questions i think were somewhat shocking and i think the court seemed very heated. If you ask whats the best thing for society on a very heated issue, is it to make it more heated or to try to tone it down and have a more civilized dialogue . Dont you think that disturb the chief justice . There was this line during oral argument with the chief justice at the and said one of the lawyers we will give you more time because we have taken it even more of your time than usual. Justice sotomayor. To be fair, just to put this in context this was argued that the after samesex and everything had been bottled up the day before you open a Death Penalty case the next day. You had alito on the one hand accusing the person to represent the inmate of being part of an organized group, demanded the Death Penalty and guerrilla warfare. Right there on the other hand, Justice Sotomayor accusing him of being an outright liar. They were also talking to each other, and so it was really, really, it was probably the worst tempered oral argument you have seen out of the Supreme Court in several decades. The chief justice seemed uncomfortable with it but think about a chief Justice Rehnquist would have handled that spirit he would have stopped it. He would have gone like, no. I once had an argument i was like having five people, and at the same time the i was with the government. The old chief justice basically goes one at a time, give the man a chance. [laughter] he had a different manner to intervene. Out of the chief Justice Roberts would do that. Has done a good job of trying to control the court. Survey with Justice Sotomayor who likes of ask a lot of questions the piece had to do some traffic cop and he has had to give more time as a result. I think on that note we are almost out of time. Ive been asked to read the following script at the end of the program. So im dutifully going to do so. Thank you for coming to program name. [laughter] i guess that 10 years of the Roberts Court. We invite you to join the panel is in the showcase lounge at the expo in Riverside Center one floor directly below. I thought the core of the earth wasnt directly below. For further conversation on the program, coffee, tea and sockets will be a fable. Stop by the lounge to take a complimentary headshot, visit with the tech lounge team for answers to all your tech questions. Side of tech questions. Sign up for a test tech questions. Side of our test driver tells the motors, which sounds like by far the most enjoyable part of this, and attend a session an amendment and visit with many exhibitors, the new and exciting legal products. So with that announcement, and the sake thanks exclamation point, it remains for me to say thank you for all the for getting up extra early and join us for this program. And please join in thanking our wonderful panel. [applause] [inaudible conversations] former president jimmy carter announced this morning that he has cancer on four small spots on his brain and to begin Cancer Treatment radiation treatment today. During the announcement at the Carter Center president carter shared his thoughts upon learning that he had cancer. First, i felt that it was confined to my liver and the operations had completely removed it. I felt quite relieved. And then that same afternoon we had an mri of my head and neck and it showed up that it was already in four places in my brain. So i would say that night and the next day and i came back up to emory, i just hope i have a few weeks left. But i was surprisingly at ease. You know, ive had a wonderful life. Ive had thousands of friends, and ive had an exciting and adventurous, gratifying existence. So i was Surprise Lake at these, much more so than my wife was. But now i feel, you know, its in the hands of god and i will be prepared for anything that comes. Some congressional reaction to president carters pronouncement. Congresswoman debbi debbie wassn schultz tweeted president carters strength is inspiring, wishing him the best to him and his family as he begins Cancer Treatment today while congress is on break this month we are showing you booktv programs normally seen on weekends on cspan2. Our road to the white house, other president ial candidates continues live from the iowa state fair on cspan, cspan radio producer cspan. Org. As they can just walk the fairgrounds and speak at the des moines registers candidate soapbox. On friday morning at 11 a. M. Eastern its senator ted cruz. On saturday republican governors Chris Christie at noon and bobby jindal at one. Joined a twitter conversation at hashtag dmr soapbox. Cspan campaign 2016 taking on the road to the white house. Follow the cspan cities to her as we travel outside the washington beltway to communities across america. The idea behind the georgia tech the programming for American History television and booktv out on the road beyond the beltway, to produce pieces that are more visual, provide a window into these cities that viewers would not only go to that also have really rich histories and a rich literary scene. A lot of people have heard the history of the big cities like new york and l. A. , chicago but what about the smaller ones like albany, new york . Which the history of them. We bend over 75 cities. We will get 95 cities in april of 2016. Most of our programming is event coverage. These are not the event coverage. They are shorter, to take you someplace, take you to a home, a historic sites. We partner with our cable affiliates to explore the history of agriculture of various cities. The key entry is the cable operator who then contacts the city. In essence is the cable industry bring is better. Really looking for great characters. You really want your viewers to be able to identify with these people that were talking about. Its the type of program where were taking people on the road to places where they touch things, see things and learn about is not just loca just a ll history because a lot of local history plays into the national story. If someone is watching it should be a something of to get the idea of the story but also feel as if this is just in our backyard. Lets go see it. We want viewers to get a sense that i know that place just watching one of our pieces. The cspan mission as we do with all of our coverage bleeds into what we do out on the road speed is calculated the message about this network in order to do this job. Its done the one thing that we wanted it to do, which is build relationships with the city and our Cable Partners and gathered some great programming for American History tv and booktv. Washed the city star on the cspan networks to see where were going next, see our schedule at cspan. Org. The founder and executive chair of the Chinese Ecommerce Company alibaba was recently in the u. S. , the Economic Club of new york invited Jack Pontotoc with these companies philosophy and how he envisions its future and why the chinese middleclass are a Growth Opportunity for u. S. Businesses. He spoke for 45 minutes. [applause] well, im so honored. I never expected so many people coming here to listen to my talk. Sitting there, i felt so for the think is much. I would like to ask how many people here have used audit Office Services . Good. Not many. Alibaba spent how many here have never been to china . Never been, never been to china. Good. Thank you very much. 20 years ago i came to america. My first trip to america was seattle. Before that i learned so much about america. From my books, from my teachers come from my school and my parents. I think i know enough about america. So when i came to america i was totally wrong. America is not what i learned from the books. And in seattle i found the internet. I came back and tell my friends that im going to open the Company Called internet. I invited 24th my friends, had a twohour discussion, and finally nobody understand, capital, 23 of them against me. Theres no such Qaeda Network called internet. Dont do it. Theres only one person who said i talk to, i dont know what that is but if you want to try, go ahead and try it. You are just too young. At that time i was 30 years old. So i started my business without knowing anything about computers, without knowing anything about business. I started my first company. My wife and i come into school me. We bought 1000 u. S. Business. It was so difficult i called myself like a blind man riding on the back of blind tigers. I survive today. For the first, for the first three years life really bad. I remember i tried to borrow 3000 from the bank. It took me three months, ask all my friends to borrow. Could not get any of that money. Everybody said jack, is telling a lie. Theres no such network called internet, 1996. So one day later in 1996 china was connected to internet from shanghai. I invited 10 new friends to my apartment. I want to tell them im not telling a lie. It is a network called internet. We waited three hours and had to see the first, download the first picture. [laughter] and people said is that how it works . I said yeah, it will work but not today. Continues they will work. At least it proved that i was not telling a lie. I remember when we tried to help our Small Business to sell online. Nobody watches the because nobody come to buy. The first week we have seven employers can we buy and sell ourselves. The second week somebody started this on the website. We had everything disappeared we had two rooms full of things that we bought. All garbage the first few weeks. In order to tell people that it works. It was not easy. Since 19951999 we failed to be going nowhere on business. Nothing was ready. In 1999, i invited 18 friends of mine who came to my apartment. We decided to do it again. We cant alibaba. Com. People say why alibaba . We believe internet is a treasure island. We should open sesame for Small Business. Would using alibaba because its easy to spell, easy to member. Want to focus on helping Small Business because at that time this focus will help Big Companies. We believe china, which would have allowed Big Companies. We have so many Small Business and Small Business, its a difficult for people to survive. If we can use internet as tech to get to help Small Business it will be fantastic. So if america is good at helping Big Companies just like america is good at making basketballs, we should point hong kong and china. We should have helped for small guys. We should not help the small guys to save costs because hope is now does it comes to the Small Business should learn how to make money. Our business is focusing, helping Small Business to make money online. We want to make the company last 100 to use. By rex because alibaba was born in 1999. Last year we had capital venture. This year, neck century when you. 100 to across three centuries the what if a clear goal to any employee, those who were successful. No matter how much weve raised, no matter how much money we make, no matter how much weve achieved, dont forget we want to have wanted to use. 16 years past of another 86 years to go. Because of the next 86 years, anytime we die, we never successful. When i heard this club is 108 years old i was surprised and shocked. There so much we can learn from that. Today nobody believed that alibaba could survive because people say you are tiny. The difference between us and thethe sun is we do not buy and sell. But we help Small Business to buy and sell. We have 10 million Small Business on our side by and celebrate a. And we do not deliver our packages, although ourselves, though we have more than 2 Million People help us to deliver over 30 million packages a day. We do not own warehouses but we manage tens of thousands of warehouses for other small and mediumsized delivery companies. We do have more than 315 million buyers. Coming to shop everyday on our site. And also we so i revenue last year was 390 billion u. S. Dollars. And this year possibly we are going to be bigger than walmart globally. Walmart managed that such a business has more than 2. 3 Million People. We grow from 18 people to today, 34,000 people. And the difference between amazon, amazon is a shopping center. Decoder, buy things, the exotica what looks like. But in alibaba people find a picture these looks like this. When you buy it looks different or people to surprise, why different . And they love it. [laughter] because here the commerce is a, then and china young people, theyre using a commerce to Exchange Ideas to communicate, build trust. Its like a starbucks. You never go to starbucks to taste a wonderful copy of the its a lifestyle. This is the internet and ecommerce is changing in china. What we are proud of is not how much we sell. We are proud. We know in five years we will sell 1 trillion u. S. Dollars. This is my goal which we think is possibly we will make it. We are proud of that but we are more proud because we create 14 million jobs for china to we couldve jobs in the countryside. We created a lot of jobs for women. Over 51 of the centrist on the internet are women. So we feel so proud of that. People say okay now, alibaba, whats next . Which the future quick you are everywhere. 80 of the buying and selling online are created by our company. Our future is that we have to focus on globalized our business. Its not only we want to make, globalized infrastructure of ecommerce. White internet ecommerce . Grow so fast in china and u. S. A. Because the infrastructure of commerce in china was too bad, not like you, you have all the shops offline, walmart, kmart, everything everywhere. But in china we have nothing, nowhere. But ecommerce in the u. S. Is a desert, its a complementary to the Main Business but in china it becomes the main course. We create the infrastructure. We think if we globalized our infrastructure, the pena, a logistics center, the transparent platform, all over the world, how can Small Business around the world is everywhere, help build consumers to buy everywhere. Our vision is in 10 years. We will help to put and consumers to shop online for anyone in the world your shopping online within 72 hours you receive a product. And anywhere in china, you shop online you will receive the product within 24 hours. And we think our globalization is still focusing on helping Small Business. And hoping those do business in the most efficient way. And we think that we help another 10 million business on our ecommerce platform. We will empower them, given the traffic, given the payment system, given the logistics system so they can do business anywhere and easily and quickly. And we will help 40 of business outside china. Today we only had 2 of our business outside china. So people keep option. What is your plan in america . People say are you going to tell me, when i going to come to invade america . When are you going to compete with amazon or ebay . Well, i would say we show Great Respect for ebay and amazon. But i think the opportunity and the strategy for us is helping Small Business in america go to china, sell the product to china. China, today china, the middleclass in china is almost the same as american population. We think in 10 years it will be more than half a billion Chinese People who will be middleclass. That demand for middleclass, the demand for good products, good service was so powerful, so strong, and i think china today cannot afford a good product, good service with a terrible error we have, the water we have. I dont think china will be able to do that. China has been focused on exporting in the past 20 years. And i think the next 20 years china should be focusing on importing the china should learn the by, spend the money, but a lot of things globally. And i think that american Small Business, americas branded products, you should use on the internet, go to china. Past 20 years Big Companies for america is already all over china. But its a great opportunity to use ecommerce for Small Business to go to america. s in the past years weve had a lot of American Farmers selling these to china. For example, you never believe that the American Ambassador to china, can you help us sell the cherry in seattle . We sell cherries as the cherries grow on trees. 80,000 farmers booked an order and without orders, pick up the cherries and shipped to china. Within 24 hours, 80,000 families, 160 tons of cherries were sold. Last year we sold over 300 tons of cherries. And i dont know what this year is about. We also helped alaska seafood. We help can do to sell lobsters. A lobster we sold probably we have a lot of american branded companies, Companies Using our site to sell. The cost of the company cosco, they sold six or 10 tons of nuts on our site, 6. 5 million u. S. Dollars. I think if we can help to sell lobsters, if we can help sell the cherries, why we cannot help the small mediumsize companies to china using our system . So this is what i wanted and also want to take one example. November 11, the single day. We make that a shopping day. Last year for that day we sold 9. 7 billion u. S. Dollars. And for the first million, this year we guess the number was scared. So my purpose coming here at we need more American Products in china. We have 100 that people come into my everyday. So this is why they come here. We do not commit to compete. Pretender to bring Small Business. My vision is that in 10, 20 years anywhere i you bike anywhere, sell anywhere. People can buy salmon, argentina can buy and sell to china. This is how the internet is going to change. Last thing you want to say this we feel proud and we think that the power of change is so powerful. The first publishing of technology, we have the organization of business and the First World War because of the strengths of the arm is also for the second revolution energy. We have companies and have second world war. This time internet, the data. And i think we have a new business called platform. And the third world war is going to happen. And this war is not between nations. This war we worked together against the disease, poverty, Climate Change. And i believe this is our future. That human beings, and nations unite together. Rely on the young people. Using not a gun, using computer, that data to solve human problems, solve societal problems. This is what im passionate about it is not about money. It is about the dreams. Its the dream she believed that change the world. We know the way is not easy. I always told come in the past 10 years doing Internet Business in china, today its difficult to tomorrow is much more difficult. But the day after tomorrow is beautiful. Most people died tomorrow evening if you dont work hard. Thank you very much. [applause] thank you very much for those uplifting remarks but i feel good about, i feel good to go. A question we have come from the new Stock Exchange and glenn hutchins, vice chair of the club and cofounder of civil rights empower. You are conflicted. It also the question you can enough into the clubs president asked questions at tom, your first question. Good afternoon, check the welcome back to new york. It was riveting as usual. You mentioned in your talk that its not about money. As you likely know we are having societal dialogue about income inequality in this country, and people who amass Great Fortunes can be vilified irrespective of whether the activities theyve engaged in domestic those fortunes has created a social good. When i think about you in the last 15 years, you could amass a Great Fortune personally as well as for your employees and your investors. At the same time give created directly rent directly 15 million jobs and lifted an entire swath of china up and given a better quality of life. What yo do you say to people who say, jack, youre too wealthy, you have amassed too great a fortune . Thank you, tom. Well, honestly the best life i had was when i graduate 1989 88, my first job my pay was 10 a month. For three years, and every time i went to collect the money i worked hard for another three months, im going to buy, i could be able to buy a bicycle. And today i have that much money, i dont have time to spend money. And i think the money is not, the money, if you of less than 1 million, you are the happiest person in the world. You know how to use the money. 10 billion you start worrying because valuation, where to buy stocks, foundation for this. 1 billion, thats not your money. Thats trust people on you. Because people say jack, you can manage money better than others. You manage the money for the others. So i think the money ive got today is our responsibility to its the trust of people on me. I dont know, i remember a day when i started business. But i asked my wife. I say, do you really want your husband to be the richest person would want your husband to be respected of Business People. She said, of course respect the Business People because we will never be rich. [laughter] by today the things i got are all out of my expectations and another that this money belong to me. If i play this money belong to me i have a problem. My life will never last long if i believe this is the money in my pocket. This is the money i spent on behalf of the society. And i spend it in my wacom in our way, back into most efficient, better than government, better for other people. So to me its one of the resources that ahead. Its that trust i should do better. Jack, american this is a long complained about counterfeit products in china. Youve had your share of the problem which you are now grappling with. Can you explain to us how you are doing to speak was okay. When i come here and i go to europe, i always have a problem about counterfeit issues. For alibaba Business Model them we do not by or sell. We had 10 million visits, Small Business. We have 1 billion products listed on our site. People buy Fake Products on our site. It whenever complaint thus. I remember three years ago i talked to commerce, the minister of commerce in china. He says, jack, lets Work Together fighting against the Fake Products. Yes, lets do it. They will pay their fair. They pay for the hotel room and they pay for everything 100 or our. If you go to alibaba because they are the big honors. I was so angry and i wrote a letter to my employees and these guys i will shut down the company tomorrow. They opened for me for four days. They burned my picture and i said take one setback. For years had passed. Today in the real world, every hundred thousand transactions are sixth in seven pages and online every 860,000 theres only one complaint. We are using data with trade. Whos the buyer, whose the seller. We destroy all of them. Ive got a lot of friends and ill tell you guys, it is a war. It is a very lonely war. I feel upset when i hear somebody because we have to fight them together. Conflict and the credit system. It would destroy our business. So i will promise here that we will do anything. China was not the only in the 30 years because a lot of people produce themselves. Today more and more Chinese Companies care by the brand. I believe it is so difficult and today we have the most unique technologies and we want to work in there with you guys in the european banks. They know how to fight against them. And i will say that a lot of Death Threats from these guys. The police do not understand that. They will report somebody is selling her and she said the place bare, a lot of big products and theres a lot of them in side. And they realize we were wrong. Said this is a war that we are getting somewhere and im confident that the internet and the young people we have, the commitment with viewers port and help we will win the war. Jack, you have expertly navigated the political situation in china as well as chinau. S. Political tension over the years. As a lookout over the next five to 10 years, what are your concerns with respect to the political situation within china or the relationship between china and the u. S. Well, in the long run its a pretty consistent relationship. I remember matt, investor to that china me to think about china and u. S. How many people here know about the chinese relation of buddhism confucius. The religion is christian. You have to find a competitor. Chinas religion is about human anxiety, how to make your heart rate enough to bridge together. How to become the nature. Confucius is how to make sure you work in society and a disappointed way. So in our culture, confucianism and buddhism is not a competitor. And china sticks to its old philosophy is, we will have no problem at all. I think the u. S. And china should Work Together and fight together. Aid, cancer, disease, poverty. And i think the Climate Change if we work with the projects im not together, u. S. And china should Work Together with the Small Companies that will follow. I felt i know americans so well. You guys go to china a lot. China is not what you think. I saw so many chinese experts tear that only go once a year and become experts. I always have a criticism trying to cover in this and not. Well, now another top 10 Internet Companies. Of course we can do better. Mix and people understand each other. Im not a lecture. I understand my competitors because business go to the theater. Business world is not the other people die, you win. Even if the other people die, you may not win. You learn to work with the competitor, focus on the customer, focus on the future and the young people. Jack, you describe in your marks from amazon and ebay which a lot of americans dont understand and how uniquely designed it was for success in china. As an investor in the come to me, and many people complain to me the Chinese Government does not allow u. S. Participates to be successful because its not a level playing field. How do you address that concern . First, a lot of successful American Companies in china. We dont see a lot of successful Chinese Companies in america. Business you ill have to the patience. You all have to prepare for the future. Microsoft, ibm, they are successful. Internet, if you want to conquer china, the internet needs to speak. If you want to win china you will never lose. You think about in 10, 20 years and how i can speak better. The reason why is because you are free. We know even when they go back to china if we lose we go nowhere. We have to create customers. I think yes or some proverbs between china government and some u. S. A. Business. But theres also Chinese Companies that the u. S. Government. If you have the patience, if you think like a blind tiger, for 10, 20 years, suffer everything. Make mistakes. Change yourself. I am confident with that. I bet there will be a lot of Internet Companies successful in china. Because you will not stop it. Youve only stop the people using the internet in the wrong way. Jack, for those of us in the room who would like to do business here in the year 2015 and a decade to 240 billion of market cap [laughter] can you give a summit by somehow you maintain the culture and the spirit of the company as you grow from 18 in 1999 to 34,000 now. Yeah, i think we feel proud because 18 people at 234,000 people. I learned from the ge, microsoft and ibm. Especially the value system. People got crazy about me. And when they go to bed, we talk about that. I remember 10 years ago when i came to america to speak, we offered alibaba by the value system. And it was sitting there when the americans said jack is a crazy guy. It is impossible. Concha turned sunday. Three days in my company. The day when he left he said jack, i know youre a crazy but now i think theres about 100 people crazy in your company. People in a crazy hospital never at and they are crazy. They think other people are crazy. Its our vision, our value. Those people will hide together, would tell this is the belief. This is our value. If you agree join, if you dont agree, leave. But if you join the team, you must follow the rules we have. Its difficult because we are going to have 50,000 people in five years. When i was talking about the freeze i said 34,000 people at 30 big enough. Our goal is in five years that the year 2019. But i want less than 50,000 people in the company. The more jobs can create. The more people we have will create less jobs. That is my philosophy. And that came to america and i will drop by 4 . That means your business is terrible. This is traditional thinking. We think about our culture. We should create a culture 10, 20 years ago. Now that human beings are moving from i. T. To dt. I. T. Information is so different. Make yourself power powerful. I. T. Is making sure you know something other people dont know. Dt is making sure everybody knows. So in that way, 10, 20 years later the company is making sure the other people, customers are more powerful than you are. We nowhere valued but we also know if you can understand young People Better we can create a new culture. My grandfather learns the world a newspaper. He trusted everything newspaper said. He also listen to the radio. My son, my daughter, they think internet, i want to get involved. So the new generation, everything internet. This is going to be a new century and the value of existing income value of b. The same, the visuals will be the same, but the culture is different. This makes me happy every day. Think about how we can have a factor organization, a better culture, train those young people, rely on the young people, make sure it is their future. Their future will be our future. Our hope their hope will be our hope. We are 53 of the management are women. 49 of women in a normal business you dont have that many Women Leaders and the women make us use their frenemies. So im excited and how to make the future better. I know the future culture of a company is surely better than today. Question from the u. S. Financial markets. Why did you decide to go public in why did you decide to do it in the United States . To take your Company Public in why did you decide the United States . People asking me this question and if i have another life i would keep my company private. [laughter] i do it not for myself. I do it for the shareholders, customers, employees. They need it. I dont need it. It was started south. Now it is much worse. But you know, then we can have more people appeared the company is more transparent. Its not only are people watch us. They improve us. We may not like the criticism, but you have to get used to it. Every time when i see some rumors here in america come you guys dont use our services. Its a great opportunity for us. Learn us, no less. Using our services at that time we can be better. In america we are reject it by hong kong. [laughter] my First Priority was in hong kong. I had 57 of shares. Close to 60 of shares. Everyone has their shares and today more than 70 of employees get alibaba and thats two less than 70 . Its about to share the prosperity. They joined the company. Such a huge company in china. The founders put together less than 10 . I dont want to say jack montag in a company in trouble. We are looking for successors. You should have kids when you are young. Now im 51. Training young people. So keep the culture is the key. I like the american system of doing business, but i dont really like your current independent system too much because i it is not good directors. Its like a lawyers. Nobody ever makes the final call. The midship of my lawyers. Agree . Yes, agreed. Many companies go that way. We should have the people so we formed a partnership and the partners in the young generation should make sure to keep the culture of the company and make sure its helping consumers. The hong kong guys dont read. Weve been doing that for 100 years. We will reject it. And we are so lucky and so thankful. I really think 25 billion is not the money we every scene, but the trust, the credit. That is the wish and hope that was raised in america and we will use the money better in a way that can help mold Small Business. Not only china. Alibaba was founded in china that it was created for the world. That is why we call the named alibaba, not some other chinese or is he would never know. I hope you may not like investors, you may not like it for five, 10 years, i think our people are working day and night we know we take care of the customer better and employees better. The shareholders will be taking care of and we know that is also our philosophy in that respect, we are thankful. That is all. Thank you. [applause] former president jimmy carter announced today he will begin radiation treatment this afternoon on cancer that is on multiple spots on his brain. He talked openly about his cancer this morning at the Carter Center in atlanta. Here is how he announced the diagnosis. In may i went down and i had a very good cold and i came back and they checked me over and in the process they give a complete physical examination in the mri showed there was a cancer or growth, tumor on my liver. They did a pet scan and that kind of lights up a bad place and it lit up, so they were pretty sure there was a cancer before they operated. August 3rd the tumor was only about 2. 5 cubic centimeters, but they moved about 85 cubic centimeters, which is about a 10th of a liver. They did a biopsy and found out it was indeed cancer and was melanoma. They had a very high suspicion than now that the melanoma started the morals on my body and spread to the liver. The. Us tell me about 90 of all melanoma skin cancer and 2 are internal. So then i came back up here after that and they did a biopsy and found an mri and found there were four spot of melanoma on my brain. They are very small spots, about two milliliters millimeters. I get my first radiation treatment this afternoon. A few of the president ial candidates tweaked it a fair reaction to the news that former president carter is undergoing Cancer Treatment the House Oversight and Government Reform Committee is looking into whether drowned should be used in the u. S. For commercial purposes. In june, members are from regulators and Industry Leaders on proposed federal rules for unmanned aerial vehicles. The federal Aviation Administration is allowed and that the aircraft to fly under a waiver while the rules are finalized. This hearing is about two hours and 15 minutes. The committee on oversight and government reform will come to order. Without objection declare recess at any time. Im excited about the hearing. I appreciate panelists here today. This is the first in a series of here in the oversight and Government Reform Committee intends to have as a talk about emerging technology. One of the great competitive with images for the united dates of america is our leadership in information technology. It is our leadership and creativity. It is the entertainment industry. We lead in a lot of different areas. One of the things the United States has done has been a bastion. Its been a great place for entrepreneurs to come up with creativity and allow the ideas to enter the marketplace and thrive and create whole new industries to create literally millions of jobs and billions of dollars in revenue and income. There are also some interesting Public Policy issues we need to discuss msu have new Innovative Companies and products and services that consumers are demanding in the public wants, we have an opportunity to make sure we are fostering the growth and create an anonymous fair where the business of the notch printers can thrive. Today we will Start Talking about drones and the next frontier for commerce does offer some exciting possibilities. But it also does create challenges. Right now First Responders deliver food and medical supplies in areas hit by disaster, line for cement and using drugs to locate missing persons. This came after years of delays on the june 2014 report by the Department Inspector general that criticized faa for being behind efforts to integrate drones into the International Air space system. Ig concluded that it was unlikely that pea would meet the deadline of september of this year, 2015 to integrate drones into our air space in addition under current faa regulations as well as the proposed rule, and is very difficult for companies that are interested in developing transformative Drone Technology tossen even go through testing of these ideas. Limit testing to small confine of indoor spaces in the United States or test gofers in a country where rules are more flexible. Many march of 2014 started testing delivers of drones that did so in australia. A year later in march of 2015 amazon tested in canada in the United Kingdom after a month was waitering for an approval in the United States of america. So that they could test real world environments in the United States. According to the uav trade association and yes there is a uav trade Association Every year that inti immigration p it is used in economical impact. I recognize it exist and i personally share many of those. I dont my neighbor flying a drone over my backyard, peering in my window and i dont want Law Enforcement using drones for constant surveillance particularly in private property. But are there appropriate uses for atmosphere dealing with large crowd and eventses that say the super bowl or Major League Baseball game or whatever it might be . Yes, i think there are appropriate uses. But can they be overused . Yes thats why we need to talk candidly. I believe there are states rights, states have a say in this. At what point does air space start to become a federal issue. What is the federal nexus and a state issue, because maybe these drones are going to land, i think the state municipalities probably want to have a say in that as well. But i would like to think that we can get this right, in fact, we must get it right. The opportunities truly are limitless and this is why were having a leader in the Transportation Industry former chairman of the tni committee. Transportation Infrastructure Committee here in the United States congress is the chair of our subcommittee on transportation. And physical assets i would like to yield some time to mr. Mike for his comments. Well, thank you, and ill be brief youve covered quite a bit mr. Chairman thank you for conducting this hearing particularly at the full committee level. Because this does demand not only the Congress Attention but the nations attention. Drones are here. And uavs are here an theyre here to stay. When we worked on faa reauthorization back in 2003, we not that long ago really, dozen years ago we never even talked about drones. In the last faa we authorization about six, seven years ago, we did direct faa to move forward with the rules, and we it is important, it is important first for safety. I think weve been very fortunate, we have had near misses and weve had some hits, but i think you can have a potential of having deadly an involving fatalities incidents with so many. We have now so many of these that uavs and drones in the air. We now have thousands of them flying. The rules are sketchy. The rules are incomplete. Looking over the progress thats been made, and the rule has been semifinallized if not finalized, people have had a period to comment, but it is still going to take im told at least another year to finalize that rule and get it in place, and in the meantime, again, we have the safety issue today were focusing on commercialization use of the drone. And im told that we lose as much as 10 billion a year in revenue for possible use of this with this technology with commercial applications. So we cant delay welcome i think this is good timing for the hearing. Well find out where we are with the progress of the approval. And then smm of the applications and then try to stay ahead of the game which is our responsibility in congress. Particularly on the commercialization side so with that mr. Chairman, i yield back. I recognize mr. Cummings from maryland for his opening statements. Smtion thank you very much mr. Chairman for calling this hearing. This is a really interesting hearing and what that i think is extremely important. And drones are an Exciting New Technology with a lot of potential uses in the not so distant future. Companies arent developing new companies to fight forest fires or even to deliver pizza, however, mr. Chairman i share the same concerns as you and many other americans. I want the use of drones to be safe. And i want to make sure that the privacy interests of the American People are protected. As with any new groundbreaking technology, our Regulatory Regime is not yet fully caught up with drones. An existing rule do not fully address the concerns americans have. Our goal must be to balance these concerns in a way that allows for the Robust Development of these new technologies while ensuring that necessary safeguards are in place. In 2014, there were more than 9. 5 million commercial Airline Flights carrying more than 850 million passengers in the United States according to bureau of transportation statistics. Our Aviation System is among safest in the world. And, obviously, we must ensure that drones do not imperial the operation of our commercial airlines. Allowing drones to fly in the air space used by commercial jets is a long term aspiration rather than an a eminent responsibility. However, although faa has approved only a small number of drones to operate in the United States air space, the assistant Inspector General has testified to congress that airline proves seeing Unmanned Aircraft around the airports. In some cases, altitudes above 2,000 feet. Right now, these all a though did not appear to be a Proven Technology to ensure that an Unmanned Aircraft can act on its own to identify and avoid other aircraft. It also does not appear to be a Proven Technology to ensure that between drones and their operators are maintained consistently. This can cause drones to crash or equally dangerous fly out of control. Our Aviation System does not allow a wide margin of error. A system to manage Drone Traffic even at low altitudes, it still is in the very early stages of development and is not ready for deployment. Recognizing the limits of existing technology, the faadhas proposed new regulations that would allow drones weighing less than 50 pounds to operate only during Daylight Hours under 500 feet and less than 100 miles per hour. These rules would also require that drones fly within the line of sight of their operators. Would be allowed to operate only one drone at a time. The use of drones in the United States air space also raises significant privacy concerns. Drones have been used to gather wide variety of film footage of people and property. They have been used to gather Real Time Data on the movements of people without those people even knowing that drones were present this data can be stored indefinitely and it can be analyzed and integrated to create detailed pictures of almost every aspect of a persons life. These possibilities raise are hosts of privacy concerns that have not been fully addressed by current law or legal precedence. Once it has been lost, privacy is not easily regained. Successfully introducing drones into u. S. Air space will require all parties to strike a balance that threads numerous needles carefully. And im confident that this can be achieved but im certain it will take time for analysis and i certainly appreciate the opportunity to consider these issues today. And i look forward to the testimony of our witnesses mr. Chairman, youre absolutely right, we have to get this right. And we have to get it right in a bipartisan way. And i look forward to doing that. With that i yield back. Thank the gentleman i hold it open for five legislative days for any members who would like to recognize a panel of witnesses we appreciate all five of you participating with us today. Queer pleased to welcome the honorable Michael Whitaker for federal Aviation Administration of the United States department of transportation. John did i pronounce that prop orally ph. D. Starts with the director of the Aerospace System Program Office at the National Aeronautic Space Administration. Mr. Paul been with us before, and yesterday Vice President of global Public Policy at amazon. Com. Mr. Brian wynn is the president and chief executive officer of the association of unmanned Vehicle Systems international. That youre here with us as well, and mr. Harley giger is advocacy director and city council at the . Erl for democracy and technology give us an interesting perspective particularly as it comes to privacy issues. Now, welcome all pursuant before they testify so if you please rise and raise your right hands. Do you solemnly affirm that what youre about to give is the truth andnology nothing but the truth. All witnesses answered in the affirmative in order to allow for discussion we would appreciate if you would limit your verbal comments to five minutes. Youll see a light there that will give you an indication. And then your full written statements will be entered into the record. We also anticipate members after the hear aing will have additional questions that we can cheat off the record so we appreciate your response to those as well. But for your verbal comments well start with mr. Whitaker now recognized for five minutes. Thank you mr. Chairman coming members of the committee, i appreciate the opportunity to be here today to discuss the safe integration of Unmanned Aircraft systems as we refer to them in the national air space. Aviation has always been an industry of innovation, driven by new technology. A Unmanned Aircraft are born from that same spirit of innovation. As youve noted in your ohms remarks this technology has thousands of podge uses from agriculture to news gathering, Fire Fighting but enters new risk into the air space at the federal Aviation Administration our challenge is to allow for this innovation while maintaining highest levels of safety. Im pleased to report that weve made Great Strides over the past year towards safely integrating usas into largest most complex averruation system in the world. The faa modernization and reform act of 2012 laid out a frame work for the safe integration in the u. S. By september of 2015 and faa has made significant progress eve meeting those mile stongs. Perhaps most important among these accomplishments is the publication of the small uas notice a proposed rule making. This rule as proposed creates one of the most flexible Regulatory Frameworks in the world for usa operation weve received thousands of comments to the mprm and reviewing those now. Issuing a final small uas rule remains one of our highest priorities. At the same time were taking other steps to enable industry to take advantage of this new technology now. The faa continues to issue exemptions under section 333 of the 2012 act to aa low for commercial activity in low risk controlled environments. Currently, faa is on average issuing more than 50 section 333 exemptions each week. We also continue to work war partners and government and industry to overcome largest technical barriers to uas integration while ensuring continued safety of the air space. Theres still a lot to learn about the capabilities and risks posed by uaf that is why were leveraging a variety of Research Tools to give industry greater flexibility and provide faa Additional Data that could inform future standards. In december, 2013, the faa selected six site it is to test uaf technology and operations. These test sites are providing valuable data to our tech center in new jersey. And we recently announcedth Pathfinder Program to study uaf programses and circumstances beyond those currently being approved. For example, bnf railroad will explore challenge of using these aircraft to inspect Rail Infrastructure beyond visual line of site in isolated areas. These partnerships with industry will help us determine if and how we can safely expand Unmanned Aircraft operations beyond the parameters set forth in the proposed rule. Beyond commercial applications, uaf has become increasingly affordable and most of whom are not trained aviators according to faa is taking a proact aive approach to educate the public on the safe and responsible use of uaf. We partnered with members of industry and Modeling Community to initiate the know before you flight Outreach Campaign providing recreational operators with the information they need to fly safely and responsibly. This outreach has been successful and several uas manufactures now voluntarily include educational materials in their packaging. The faa a also initiated a no drone Zone Campaign to raise awareness of the prohibition of flying Unmanned Aircraft near outside sporting events. In may we built on that success and launched a public jot Reach Campaign for washington, d. C. To reenforce the message that the city itself and all communities within 15 miles of National Airport it is constitute a no drone zone. While our preference is to educate amateur operators about Legal Compliance we will use administrative and enforcement action to gain compliance when appropriate. Local Law Enforcement is often in the best position to respond quickly, the faa a recently issued guidance to First Responders on how they can best assist us. The United States has a safest Aviation System in the world an our goal is to integrate this new important and technology while maintaining that high level of safety. The faa has successfully integrated new technology in our Aviation System for more than 50 years. And we will do the same with Unmanned Aircraft. We look forward to continue to work with congress and industry to achieve these common goals. Thank you and ienl happy to take thank you hold questions until referred from panelistsing. Next hear from doctor hes the director of air Space Operation an safety programs at the National Aeronautic Space Administration welcome sir. Chairman thank you cummings and members of the Committee Good morning, and thank you for this opportunity to testify on nasa Aeronautic Research program, and the challenges associated with with the operations of Unmanned Aircrafts systems of the national air space. Nasa straw teenages i thrust assured autonomy defines the integration of uas. And on near Term Research builds foundation for the more extensive transformative changes that aton mists bring over the midan far term. Uss systems hold great promise for the transformation of our Aviation System and witnessing dawn of a new era of aviation innovation. Ushering in flight vehicles and oarings os that are unimaginable today and opening up entirely new commercial markets. Much the way jet engines did 60 years ago. Nasa performing research, and transition concept, knowledge to the faa and other stake hold terse to help them define the requirements, regulations and standards for safe, routine access. Still theres significant barriers in Research Challenges associated with the instruction of aton Autonomy Systems addressing these requires complex systems to be comprehensively evaluated to verify and validate that theyre operating designed best allowing faa to establish commitment standards. Now, a significant part of nasas near Term Research work towards safety u. S. Integration is focus on three areas. First, our sense to avoid research she knowing to determine performance requirements for certifiable system with all a vehicles operating in the nas. With reliable Communication Systems and protocols, and third, were addressing the design of Ground Control stations and displays to maximize positive effectiveness and safety. Now, to transfer our research findingings, nasa has built effective partnerships with key stakeholders. Certainly the faa. But the department of defense, also department of Homeland Security and industry in academia as well it is playing role supporting critical activity as from executive level down to our subject matter experts. And now for midterm applications, nasa is researching to develop safe at tutteds that are not act aively controlled today. Such as small uas. 55 pounds or lighter operating at altitude of 500 feet or below. In order to safely enable wide spreads civilian u. S. Lower aviation at lower altitudes nasa development and management like system called as Traffic Management or o utm. You can think of it look surface Traffic Management where they advance consistents of roads, lanes, traffic lights similarly the system provides services such as air space quarters, terrain avoidance and separation management. Working along side many committed partners will lead the research, development and testing of the utm allowing serious of prototypes or builds each increasing in capability. In fact, first bill will be evalwaited in a demonstration in august a of this year. And a little in late july nasa holding is a utm convention to explore and define needs of low altitude small operations over 50 o attendees with federal, state, local, government and general public have registered to attend. So through game change whatting longTerm Research, nasa enables growing, sustainable and transformative Aviation Systems achieving this with partnerships built upon clear responsibilities, on long productive working relationships, with and in close and continuous coordination per the specific needs of uas integration. As challenges of uas integration nasa aeronautics will continue to develop enabling technologies that will assure the safe realization of the transformative benefits of uas and increase the competitiveness of the u. S. Civil aviation industry. So thank you again for the opportunity to speak today an ill be pleased to answer any questions that the committee might have. Withhold until weve heard from all witnesses. Recognize now paul Vice President with amazon welcome and youre recognized. Thank you mr. Chairman. Delivering commercial service when permitted so policymakers should adopt rules of operation that emphasize drone safety in system performance. Thank you for your attention to this important topic and for holding this hearing. Amazon is a future service to deliver packages up to five pounds to customers in 30 minutes or less using small drones also known as Unmanned Aircraft systems or uas. Flying online site in 500 feet above 200 feet for takeoff and landing and weighs less tan than 2 pounds in total take advantage of sense and a to safely operate at distances of 10 miles or more well beyond visual line of site. No country in which we have distribution facilities that has yet adopted rules to allow package deliveries so were working with Government Agencies to develop appropriate rulings for u. S. Aviation and must allow operations to take advantage of a core capability of Uas Technology which is to fly with minimal human involvement beyond visual line of sight beyond a human operator. Such should be proportionate to risk setting level of safety but not man dating how that level must be met. Safety is amazons top priority a top priority we share with the faa and nasa, and were committed to mitigating safety risks. Key aviation authorities outside of the United States are rapidly with framework and a operational ewes their approach is risk and performance based and it is mindful of the tremendous opportunities for innovation anu economic benefits that uas present. Here in the United States, faa also is taking its uas responsibility seriously and amazon is grateful for attention that agency is giving to this new innovative technology. Faas small uas speak tots need for a performance based approach to rule making. Were fully in rt spue of this approach and agree with. At the same time the mprn has shortcomings because the prohibitions maintained are not actually performance based. And if adopted as drafted rules would not establish a rage la story framework to permit primary operations in the United States. More specifically respectfully disagree with the faas current opinion. That extending sea and avoid principles to the potential loss of positive control of small uas present, quote, unique safety concerns thereby warrant nearby consideration. All a though safety concerns present engineering challenges, such challenges are not different from the other engineering challenges facing small designers so they should be assessed resulting in performance based operating permissions. Granted regulators here and abroad cannot quickly adopt actual rule it is for operationsing beyond visual line of sight that may take time but american pots makers should quickly propose rules for future commercial suas operation. Amazon believes that faa should act expeditiously to ask to provide guidance to the agency and provide additional legal authority. First and foremost suas regulations must be risk and performance based that is rules should take into account the risk of operation, including for example absence of passenger improved, lower connectivity and low operating altitude and evalwait how mitt gaits these risks. Prohibitions no nighttime operations or no operations beyond visual line it have sight make no sense and must be avoided. Like wise highly automated uas vehicles should be aloud to fly if they meets requirements and a single uas operator should be able to oversee simultaneous operation of multiphysical highly automated small uas vehicles. Girch the interstate nature of commercial operations, based on locality must be not alouded to regulate that the faa has authorized including with respect to air space, altitude. Purpose of operation, performance, and operator qualifications. Uniform federal rules must apply. In conclusion mr. Chairman i look ford to working with you and your committee in the faa to help the United States expeditiously adopt rules for suas operations that emphasize and permit drones to have the knicks commercial of Delivery Service safely and soon. Thank you i welcome your questions. Thank you. And well now hear from mr. Brian wynn president an ceo of association for unmanned Vehicle Systems international, welcome, and a youre recognized, sir. Thank you mr. Chairman Ranking Member cummings members of the committee i appreciate opportunity to testify today. I represent the association for unmanned Vehicle Systems international. The Worlds Largest Nonprofit Organization devoted exclusively to advance unman system in robotic committee. Has been a voice for Unmanned Systems for more than 40 o years and currently we have 7500 members including over 600 corporate members. The Unmanned Aircraft industry is poised to be one of the Fastest Growing in American History. Our Economic Impact study found first decade will result in more than 82 billion in u. S. Economic activity and create more than 100,000 new high paying jobs. Faa modernization and a reform act of 2012 established a foundation for government and Industry Collaboration to advance system emerging sector. As part of this, the faa is currently working on finalizing rules for commercial and public use of this technology. The agency is also graduating permission for limited use on a case by case section under 333 of the 2012 act. But more can and should be done. Despite these positive steps, we need to permit expanded uses of Uas Technology that pose no additional risk to the air space system. For example, whether within the context of the rule through the reauthorization, ore by other means, we need to allow for a beyond visual line of sight, nighttime operation and operations over congested areas otherwise we risk stungting a still nation industry. Uas technology is advancing rapidly. Thanks to collaboration between industry and government

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