U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

For sale by the Superintendent of Documents, U.S. Government Publishing Office

Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800

Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001

94–056 PDF 2015

S. HRG. 113–619 

NOMINATION OF PENNY PRITZKER 

TO BE SECRETARY OF THE 

U.S. DEPARTMENT OF COMMERCE 

HEARING 

BEFORE THE

COMMITTEE ON COMMERCE, 

SCIENCE, AND TRANSPORTATION 

UNITED STATES SENATE 

ONE HUNDRED THIRTEENTH CONGRESS 

FIRST SESSION 

MAY 23, 2013 

Printed for the use of the Committee on Commerce, Science, and Transportation 

( 

(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED THIRTEENTH CONGRESS 

FIRST SESSION 

JOHN D. ROCKEFELLER IV, West Virginia, Chairman 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK R. LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas 

CLAIRE MCCASKILL, Missouri 

AMY KLOBUCHAR, Minnesota 

MARK WARNER, Virginia 

MARK BEGICH, Alaska 

RICHARD BLUMENTHAL, Connecticut 

BRIAN SCHATZ, Hawaii 

WILLIAM COWAN, Massachusetts 

JOHN THUNE, South Dakota, Ranking 

ROGER F. WICKER, Mississippi 

ROY BLUNT, Missouri 

MARCO RUBIO, Florida 

KELLY AYOTTE, New Hampshire 

DEAN HELLER, Nevada 

DAN COATS, Indiana 

TIM SCOTT, South Carolina 

TED CRUZ, Texas 

DEB FISCHER, Nebraska 

RON JOHNSON, Wisconsin 

ELLEN L. DONESKI, Staff Director 

JAMES REID, Deputy Staff Director 

JOHN WILLIAMS, General Counsel 

DAVID SCHWIETERT, Republican Staff Director 

NICK ROSSI, Republican Deputy Staff Director 

REBECCA SEIDEL, Republican General Counsel and Chief Investigator 

(III) 

C O N T E N T S 

Page 

Hearing held on May 23, 2013 ............................................................................... 1 

Statement of Senator Rockefeller ........................................................................... 1 

Statement of Senator Thune ................................................................................... 6 

Statement of Senator Warner ................................................................................. 52 

Statement of Senator Fischer ................................................................................. 54 

Statement of Senator Scott ..................................................................................... 55 

Statement of Senator Blunt .................................................................................... 57 

Statement of Senator Klobuchar ............................................................................ 59 

Statement of Senator Cowan .................................................................................. 62 

Statement of Senator Cantwell .............................................................................. 64 

Statement of Senator Begich .................................................................................. 66 

Statement of Senator McCaskill ............................................................................. 68 

Statement of Senator Cruz ..................................................................................... 70 

WITNESSES

Hon. Richard Durbin, U.S. Senator from Illinois .................................................. 1 

Hon. Mark Kirk, U.S. Senator from Illinois .......................................................... 3 

Letter dated May 15, 2013 to Hon. Mark Kirk from William M. Isaac ....... 3 

Penny Pritzker, Nominee to be Secretary, U.S. Department of Commerce ........ 8 

Prepared statement .......................................................................................... 10 

Biographical information ................................................................................. 11 

APPENDIX

Response to written questions submitted to Penny Pritkzer by: 

Hon. John D. Rockefeller IV ............................................................................ 77 

Hon. Maria Cantwell ........................................................................................ 78 

Hon. Frank R. Lautenberg ............................................................................... 80 

Hon. Mark Pryor ............................................................................................... 82 

Hon. Mark Begich ............................................................................................. 84 

Hon. Brian Schatz ............................................................................................ 84 

Hon. William Cowan ........................................................................................ 89 

Response to written questions submitted by Hon. John Thune to Penny 

Pritzer regarding her Questionnaire Responses ................................................ 89 

Response to written questions submitted to Penny Pritzker by: 

Hon. John Thune .............................................................................................. 91 

Hon. Roy Blunt ................................................................................................. 97 

Hon. Marco Rubio ............................................................................................. 97 

Hon. Kelly Ayotte ............................................................................................. 100 

Hon. Dean Heller .............................................................................................. 101 

Hon. Dan Coats ................................................................................................ 102 

(1) 

NOMINATION OF PENNY PRITZKER 

TO BE SECRETARY OF THE 

U.S. DEPARTMENT OF COMMERCE 

THURSDAY, MAY 23, 2013 

U.S. SENATE, 

COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, 

Washington, DC. 

The Committee met, pursuant to notice, at 11:07 a.m. in room 

SR–253, Russell Senate Office Building, Hon. John D. Rockefeller 

IV, presiding. 

OPENING STATEMENT OF HON. JOHN D. ROCKEFELLER IV, 

U.S. SENATOR FROM WEST VIRGINIA 

The CHAIRMAN. Good morning, and this hearing will come to 

order. Because we are confronted here by two incredibly important 

and busy Senators facing us, it would never occur to Senator 

Thune and I to do what we ought to do, which is to give our statements first and make you wait. So what we are going to do, if it 

is all right with you, is ask each of you to give your statements, 

then we will give our statements, and then we will go to Ms. 

Pritzker. 

Senator Durbin. 

STATEMENT OF HON. RICHARD DURBIN, 

U.S. SENATOR FROM ILLINOIS 

Senator DURBIN. Chairman Rockefeller and Senator Thune, 

thank you, as well as other members of the Committee, for allowing Senator Kirk and I to come here today to introduce the nominee that the President has offered to this committee and to Congress for the important position of Secretary of Commerce. 

I know that you are leaning in our direction, Mr. Chairman, because of your wonderful Illinois-born wife and your connections to 

our great State. And we thank you for that. 

The CHAIRMAN. Actually it is not that. It is that you are in the 

leadership, and I do not want to mess around with you. 

[Laughter.] 

Senator DURBIN. That will be a first. 

[Laughter.] 

Senator DURBIN. Mr. Chairman, it is an honor to introduce 

Penny Pritzker, the President’s nominee to be Secretary of Commerce. She is here with her family, whom she will introduce, I am 

sure, when the time is right for that. 

2 

What you see when you consider Ms. Pritzker is not only decades 

of business, entrepreneurial, and civic experience, which make her 

a strong candidate for this position, but also a warm, compassionate person who has really given back to the committee in Illinois and across the Nation. Ms. Pritzker has built five businesses 

from scratch, served on numerous corporate boards, and has been 

an effective leader of major corporations. She ranks as one of the 

most influential women in corporate America, and that is quite an 

achievement when you consider the glass ceilings and other obstacles which women face. 

Her lifetime of business experience includes her current role as 

Founder, Chairman, and CEO of PSP Capital Partners and 

Pritzker Realty Group. She also serves on the Board of Artemus 

Real Estate Partners and Hyatt Hotels Corporation, previously 

served on the boards of William Rigley, Jr. Company, Marmon 

Group, and the LaSalle Bank Corporation. Her decades of business 

experience will serve her well in leading this Agency’s primary mission, which is to work with businesses, universities, and communities to promote job creation and economic growth. 

Ms. Pritzker’s business experience is only enhanced by her service to the community in Illinois and across the country. She has led 

initiatives that improve education and help connect people with job 

opportunities. She leads Skills for America’s Future, a national program that brings together businesses, community colleges, and others to prepare workers for 21st century jobs and to help them find 

employment. 

In addition to education, she is an ardent supporter of the arts. 

Ms. Pritzker is a Member of the American Academy of Arts and 

Sciences, a Trustee of the Kennedy Center, and former Chairman 

of the Board of the Museum of Contemporary Art in Chicago. President Obama appointed Ms. Pritzker to the President’s Council for 

Jobs and Competitiveness, and she previously served on the President’s Economic Recovery Advisory Board. 

Well, you just might think in the process of serving so many 

charities and so many boards and managing so many businesses 

that she would be a pretty busy person. Well, she is. But for fun, 

she trains for and competes in iron man distance triathlons in her 

spare time, Senator Thune. I know you do that yourself. 

Penny Pritzker’s business know-how and intelligence make her 

an excellent candidate to serve as Secretary of Commerce. Her 

humor, warmth, and humanity only underscore those qualifications. Her wide-ranging perspective will prove worthwhile to the 

future of our Nation as we compete in the global marketplace and 

as we continue to get our economy back to work. 

Ms. Pritzker’s contributions to the business world, and especially 

to the state of Illinois, are truly appreciated. 

It is my pleasure on behalf of myself and Senator Kirk to introduce to this committee Ms. Penny Pritzker. I fully support her 

nomination and look forward to working with her as she becomes 

President Obama’s Secretary of Commerce. 

The CHAIRMAN. Thank you, Senator Durbin. Senator Kirk, do 

you have any remarks? 

3 

STATEMENT OF HON. MARK KIRK, 

U.S. SENATOR FROM ILLINOIS 

Senator KIRK. I do. Mr. Chairman, I want to say that I am very 

enthusiastic for Penny’s nomination. I have seen her as a voice for 

business that the President will have to heed. 

Let me just point out a few things that Senator Durbin mentioned, that she started a new business from the ground up called 

Classic Residence by Hyatt that already employs 3,500 Americans. 

I have a letter for you that I would like to submit for the record 

by President Reagan’s former Chairman of the FDIC, William 

Isaac, that I think will help you. 

And just to say to my Republican colleagues—— 

The CHAIRMAN. The letter will be included. 

[The information referred to follows:] 

May 15, 2013 

Hon. MARK KIRK, 

United States Senate, 

Washington, DC. 

Dear Senator Kirk: 

I am writing to support the confirmation of President Obama’s nominee to be Secretary of Commerce, Penny Pritzker. I have known Ms. Pritzker for over a decade 

and believe she will be an outstanding Secretary of Commerce and a great ambassador for the U.S. throughout the world. In my view she will be among the most 

able in President Obama’s cabinet—someone with considerable experience in business and job creation. 

Since her nomination, some have said that her experience as Chair of Superior 

Bank in Illinois—an S&L that failed in 2001—disqualifies her for the cabinet post. 

I was not involved at Superior Bank or with the Pritzker family prior to the bank’s 

failure but was quite involved after its failure so I believe I have a unique vantage 

point from which to comment on those events. 

I had the opportunity and the honor of serving at the FDIC under two Presidents. 

I was appointed to the FDIC board in 1978 by a Democrat, President Jimmy Carter, 

and became Chairman of the agency in 1981 under a Republican, President Ronald 

Reagan. It was a tumultuous time for the economy and financial system with some 

3,000 banks and thrifts failing during the decade of the 1980s. 

In 2001, about 15 years after I left the FDIC, I was approached by Penny 

Pritzker. She had left the Superior board and had no active role beginning in 1994, 

seven years before the bank failed, but her family retained 50 percent ownership 

of the bank. She wanted to find a way to pay for the collapse and to make sure 

that those customers who were affected got as much of their money back as possible 

and as quickly as possible. She requested my help in reaching out to the FDIC, 

which at the time preferred a full investigation prior to bringing any claims and discussing possible litigation or settlements. That approach would have cost millions 

of dollars and delayed resolution of the failed bank and the return of creditors’ 

funds. 

The case I stated to the FDIC was that it was far from clear that the Pritzkers, 

as shareholders of Superior, had any liability to the FDIC, as the bank’s receiver. 

I said the Pritzkers wanted to pay the FDIC a lot of money as soon as possible without the delay and expense of protracted investigations and litigation. The FDIC 

agreed and ultimately we reached a resolution with the FDIC in which Penny and 

her family paid the FDIC $450 million. I’m not aware of a larger bank settlement 

in FDIC history. 

While I believe FDIC may have lost some money in the failure of Superior Bank 

even after the payment from the Pritzker family and settlements with other parties, 

the intention at the time was to cover the entirety of the FDIC’s likely losses, which 

were uncertain because they would be affected by future market conditions relating 

to the value of the bank’s assets, potential settlements by the FDIC with other parties, and the timing of the FDIC’s disposition of the bank’s assets. I should note that 

the FDIC is funded by the banking industry and no taxpayer funds were involved. 

Moreover, I would note that I am not aware of Penny personally profiting in any 

way from the activities that brought down Superior Bank. 

4 

I said publicly at the time of the Pritzker settlement that in all my years of dealing with bank failures, I had never known any investor in a failed bank to take responsibility as the Pritzkers had done. I stand by that statement. 

Their actions are even more noteworthy given that the Pritzker family owned only 

half of the bank. The other half of the bank was owned by a New York based real 

estate developer who I understand controlled the bank’s operations. Had the FDIC 

chosen to bring suit against the Pritzkers after completing a lengthy investigation, 

it’s far from clear that the FDIC could have prevailed in court. 

Understandably, there has been public discussion about Penny Pritzker’s background following President Obama’s nomination of her last week. She is a business 

woman with a strong record of success international in scope. She and her family 

are also philanthropic and civic leaders on a major scale. Part of the measure of 

a person should also be how they react in times of stress and of crisis—when things 

go awry. In their actions after the failure of Superior Bank, Penny and her family 

demonstrated a commitment to taking responsibility and treating the FDIC and others involved fairly. 

Although the U.S. economy has been stabilized since the crisis of 2008–2009, we 

are still living in perilous economic times and the incoming Secretary of Commerce 

will have a great deal of work to do to help businesses grow, add jobs, and compete 

globally. In my view, President Obama has selected an outstanding person to carry 

out this mission at a critical time. 

Please do not hesitate to reach out to me if I can provide any additional information. 

Respectfully, 

WILLIAM M. ISAAC

Senator KIRK.—I will be whipping each one of you on behalf of 

Penny’s nomination coming up when the vote comes, hoping that 

this voice for business becomes our next Commerce Secretary. 

The CHAIRMAN. Great. All right. Now, you two distinguished senators have a choice. You can listen to Senator Rockefeller and Senator Thune—— 

Senator DURBIN. I am afraid we have to go, Mr. Chairman. 

[Laughter.] 

Senator DURBIN. But we appreciate—we so appreciate that offer. 

The CHAIRMAN. Yes. 

Senator THUNE. That is the correct answer. 

Senator DURBIN. Thank you very much. 

The CHAIRMAN. Now, Senator Thune and I will give our opening 

remarks. And then what we are going to do is what we did yesterday, and that is that other colleagues on both sides will not give 

opening remarks, but all questioning periods will go for 7 minutes 

so you can kind of do quite a lot with that, all right? Is that all 

right with you, sir? 

Senator SCOTT. Yes, sir, Mr. Chairman. 

The CHAIRMAN. Thank you. 

Senator SCOTT. Yes, sir. 

The CHAIRMAN. I would like to call this nominations hearing to 

order. It is an important one. We are meeting today to consider a 

distinguished nominee to be the next Secretary of Commerce. We 

have not had a Secretary of Commerce in a while, and if I can be 

just a bit rash, we have not had a strong Secretary of Commerce 

in quite a while. 

Ms. Pritzker’s nomination comes at an important time during our 

Nation’s economic recovery. While we have the lowest levels of unemployment in 4 years, that is fine, too many people are still out 

of work in my state, and Senator Thune’s, and all of our states. 

Across the board budget cuts imposed in March are creating a new 

drag on the economy. 

5 

Our nominee understands these challenges. She is a business 

woman. She follows the world about her very closely. In fact, your 

decades of experience in the private sector, in my judgment, investing in and managing numerous companies have given you the 

skills to manage a very large department, and that is what you are 

going to get, a very large department, bifurcated in many sections, 

not all of them communicating with each other, in need of good, 

tough leadership. 

You come from the business community, and you understand 

their needs. But your long track record as a civic leader is also 

going to serve you very well in this position should you be confirmed. As many already know, and as has been said, you served 

on the President’s Council on Jobs and Competitiveness and the 

President’s Economic Recovery Advisory Board. You also served as 

Chairman of the Aspen Institute Skills for America’s Future 

Project. I did not know that, and I am pleased by that because it 

has fostered partnerships between more than 40 employers and 

200 community colleges across our country. 

Each of these experiences will be important to your task at Commerce should you be confirmed. The Commerce Secretary is in 

charge of 12 different bureaus and over 40,000 employees. To do 

the job well, you will need to reach far beyond the people under 

your direct management. The Department of Commerce serves very 

different constituencies that touch all corners of our country, remarkably different—the Arctic Ocean, to all kinds of fish, to telecommunications—everything. 

You will need to appreciate the immediate financial struggles 

facing fishermen, not in West Virginia, but in the northeast and in 

the southwest, which is a very tricky. At the same time, you are 

going to be managing and conserving the Nation’s fisheries for all 

of us for the future. You will need to find ways to improve the resilience of our coastal communities who face increasing threats from 

storms, and sea level rise. Sea level is rising. Some do not believe 

that. I do. You will need to work directly with businesses and communities, partnering with them, and to create jobs, and expand opportunities. 

Collaboration between the public and private sectors is one of the 

centerpieces of the Department’s work, whether it is the creation 

of cybersecurity standards, which we do some of in this committee 

or the creation of those standards or the development of manufacturing hubs for small-and medium-sized businesses. The private 

sector has to rely on and trust the Commerce Department’s work. 

This trust is crucial to the long-term competitiveness of the United 

States. Ms. Pritzker, we will be depending on you to continue this 

collaboration and strengthen it where necessary. 

One crucial area of public/private collaboration is the development of the wireless economy. The Commerce Committee closely 

follows the Department’s efforts in this area. Expanding the spectrum that is available for wireless services and relieving the socalled spectrum crunch will be vital to jobs and growth in the Nation in the years to come. At the same time, smart spectrum policy 

includes protecting vital Federal operations. Not all Federal operations want to give up any of their spectrum. You will be running 

into the Department of Defense on that, and good luck. 

6 

I expect that the Department will continue to work in close cooperation with Federal agencies and the private sector to open up 

more spectrum to meet our just burgeoning spectrum needs, and 

you cannot create it. You cannot create it. 

Finally, the Department manages our Nation’s severe storm 

warning system and weather satellites. This has been a troubled 

area for us, especially with satellites. The terrible tragedy in Oklahoma is a stark reminder to us that the vital role that the National 

Weather Service plays in extreme weather events. In severe conditions, like we saw in Oklahoma earlier this week, minutes matter. 

And I am convinced that as bad as the devastation was, the timely 

emergency warnings issued by the National Weather Service probably saved some lives. 

Even as it faces budget cuts imposed by the sequester, not something we expected, but it is something that we have. We expected 

to come to a grand bargain. We have not, so sequester is part of 

the lives of all of us. We need a new weather-ready Nation initiative to improve communications during severe weather events and 

to build community resilience in the face of increasing vulnerability 

to extreme weather. 

Ms. Pritzker, you have had a very, very full, hard-charging, highly successful life. I am one who profoundly believes in public service. You obviously do because of all of these boards that you belong 

to that deal with youth training and jobs and all of that. So I look 

forward to your testimony and hearing from my colleagues, especially my ranking colleague, Senator Thune. 

STATEMENT OF HON. JOHN THUNE, 

U.S. SENATOR FROM SOUTH DAKOTA 

Senator THUNE. Thank you, Mr. Chairman, and thank you for 

holding this hearing today on the nomination of Penny Pritzker to 

be the next Secretary of Commerce. And I want to welcome Ms. 

Pritzker to our committee. 

Ms. Pritzker has an extensive background in the private sector, 

and I look forward to hearing how she will apply that experience 

to achieve positive results at the Department of Commerce and for 

the Nation’s economy should she be confirmed. 

The Department of Commerce is tasked with promoting business, 

facilitating job creation, and spurring economic growth. Unfortunately, our Nation’s unemployment rate is still at an unacceptable 

level: seven and a half percent. In December 2007, the unemployment rate measured at five percent, and it peaked at 10 percent 

in October 2009. Clearly much work remains to be done to get the 

unemployment rate to pre-recession levels, particularly when you 

factor in the 21.9 million Americans who are unemployed or underemployed. 

Despite positive reports in other areas of the economy, job 

growth remains very slow, and so far in 2013, monthly job growth 

has lagged behind the monthly averages experienced last year. 

We in Congress must make jobs and the economy our top priority, and that means we must strive to do what we can to unleash 

the great American entrepreneurial spirit. We need to remove 

needless and outdated regulation and reduce burdensome tax rates 

for businesses of all sizes. We must craft policies that spur the priVerDate Nov 24 2008 07:34 Apr 10, 2015 Jkt 075679 PO 00000 Frm 00010 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\94056.TXT JACKIE
7 

vate sector to take risks, to create jobs, and we must also seek to 

restrain the government’s inclination to intervene in the marketplace. In other words, we should let the free market choose economic winners and losers rather than having the government do 

so. That is why I believe it is critically important to have a Secretary of Commerce who has a strong record of accomplishment in 

creating jobs in the private sector, someone who knows the challenges and how to overcome the barriers the private sector faces in 

creating jobs. 

I believe the next Commerce Secretary must be a strong advocate 

for trade and open markets for America’s farmers and manufacturers. The next Commerce Secretary must also work to create a more 

business-friendly environment. It is no secret that the Obama Administration has been criticized for adopting a negative attitude toward business, which I believe contributes to some of the economic 

problems we have observed over the last several years. There is a 

significant uncertainty in the private sector, and many within the 

business community are wary of the Obama Administration’s predisposition to have the government intervene in the free market 

and its failure to adopt pro-growth policies. 

I believe we must have a Cabinet official who is strongly committed to economic expansion, trade promotion, and policies that 

strengthen our competitiveness. So I look forward to hearing Ms. 

Pritzker discuss her priorities with respect to these issues. I am 

particularly interested in hearing about Ms. Pritzker’s experience 

serving on the President’s Council for Jobs and Competitiveness. I 

am also interested in Ms. Pritzker’s views on making more Federal 

spectrum available for commercial use, as you mentioned, Mr. 

Chairman. 

The Commerce Department is uniquely situated to play a role in 

this matter, particularly with one of its agencies, the National Telecommunications and Information Administration. Should Ms. 

Pritzker be confirmed, I would ask that she focus some of her time 

and energy on dealing with this issue, especially with respect to 

freeing up the 1755 to 1780 megahertz band. 

I hope that we can work together to resolve this issue because 

if we are successful, it will ignite a great deal of economic activity 

across the country, assist in funding a nationwide public safety network, and ultimately help to ease the Nation’s debt by bringing billions of dollars into the treasury from the auctioning of this valuable spectrum to the private sector. 

Finally, I would note that some concerns have been raised about 

Ms. Pritzker’s role with and position as a beneficiary of an offshore 

tax haven, as well as her role in the failure of Superior Bank back 

in 2000–2001. I have been in communication with her on these 

matters. I would appreciate her continuing to work with us after 

the hearing to answer all the questions I and other members of the 

Committee may have before we report her nomination. 

Should she be confirmed, I hope that Ms. Pritzker will be a 

strong voice on the President’s Cabinet for lowering regulatory burdens, lowering tax rates on businesses large and small, and promoting job creation in the private sector. 

On a personal note, Ms. Pritzker, I want to thank you for your 

willingness to serve our country. While I do not expect we are 

8 

going to see eye to eye on every issue, it is important that we have 

individuals with experience in business who are willing to put that 

experience to work in the service of our Nation. 

Thank you again for holding this hearing, Mr. Chairman. I look 

forward to hearing Ms. Pritzker’s testimony. Thank you. 

The CHAIRMAN. Thank you, Senator Thune. 

Ms. Pritzker, the floor is yours. 

STATEMENT OF PENNY PRITZKER, NOMINEE TO BE 

SECRETARY, U.S. DEPARTMENT OF COMMERCE 

Ms. PRITZKER. Thank you. Thank you for those kind words of introduction, Chairman Rockefeller, Ranking Member Thune, and 

members of the Committee. I am honored to be under consideration 

for Secretary of the United States Department of Commerce. 

With me today is my husband, my rock, and my best friend, Dr. 

Bryan Traubert, as well as my son, Don, who just graduated from 

college, and my daughter, Rose, who just returned from her first 

year at college. 

Over the past few weeks, I have had the privilege to meet with 

many of you to discuss the Department and how we can work together to give entrepreneurs and businesses the tools they need to 

create jobs and keep our economy growing. Thank you for your valuable time, insights, and perspectives. 

American entrepreneurship is at the heart of my family’s history. 

My great grandfather came to the United States from czarist Russia, dirt poor, at the age of 10. He taught himself English, worked 

several jobs, and earned his law degree at night, and opened a law 

practice at the age of 30. My father was the founding president of 

Hyatt Hotels. When I was a child, he took me to work with him 

at the motels on weekends. I would play on his adding machines 

at his office and help out with inspections of our property. As an 

entrepreneur and a business builder, he has been my inspiration. 

My father died when I was just 13, so in high school as my interest in business grew, I turned to my grandfather. On his 80th 

birthday, my mother said I could give him anything I wanted as 

a gift, so I decided to write him a note on my green stationery. In 

it, I asked him why he only talked to the boys about family business when I was AS interested in business as they were. He said 

to me, ‘‘Penny, I was born in 1896. How am I supposed to know 

that young women are interested in business?’’ But he gave me a 

book on accounting and taught me the basics that summer, and I 

was hooked. 

I attended college at Harvard and received my MBA and law degree simultaneously from Stanford. Then I began working with my 

grandfather, my uncle, and my cousins, in the family business. In 

the 27 years since then, I have worked as an entrepreneur, both 

starting businesses from scratch and growing existing ones. It has 

not always been easy, but I have learned from both my successes 

and my failures. 

For example, my first startup involved residential communities 

for seniors. The initial team consisted of me, a secretary, and a 

lawyer. Like most entrepreneurs, I found the first few years to be 

terrifying, particularly when the early 90s recession hit. I held myself to high standards, even suggesting to my uncle that he fire me 

9 

if I could not turn things around quickly enough. Through hard 

work, we survived and grew, and the company remains successful 

today, employing thousands of people. 

Since then, I have been involved in sectors ranging from hospitality, to manufacturing, to real estate, to financial services, and 

more. I have founded or co-founded five companies, which have created thousands of jobs across the country. I have also sat on five 

corporate boards. 

My role in civic life has been both local and national in scope. 

At the local level, I have served as Chair of the Chicago Museum 

of Contemporary Art, as a member of the Chicago Board of Education, and as co-founder of my family’s foundation, which enriches 

the lives of Chicago’s children through education, health and fitness, and arts and culture. 

On a broader level, I have served on the boards of the Council 

on Foreign Relations, Stanford and Harvard Universities, the Kennedy Center for the Performing Arts, and others. Over the past few 

years, I have served on the President’s Council on Jobs and Competitiveness and the President’s Economic Recovery Advisory 

Board, both of which have helped to stabilize our economy and support job growth. Flowing from this, I launched Skills for America’s 

Future. This initiative promotes partnerships between employers 

and community colleges to address the skills mismatch. In our first 

local model launched last September, Skills for Chicagoland’s Future, we have already secured commitments from companies to hire 

1,000 unemployed Chicagoans. 

If confirmed, I intend to leverage the sum of these experiences 

as an entrepreneur, as a business leader, and as a citizen deeply 

committed to American competitiveness in my service as Commerce 

Secretary. 

I should note that I have had firsthand experience with the Commerce Department over the years. For example, the information 

from the Census Bureau was the foundation for the decisions I 

made when starting the Senior Living Company I described earlier. 

Moreover, I know that thousands of businesses get the information, 

tools, and support they need from the Commerce Department each 

year. This includes patents for new products, support for small 

manufacturers, help for exporters who want to break into new markets, assistance for entrepreneurs from underserved communities, 

support for our fisheries and coastal economies, dissemination of 

timely and accurate weather forecasts, and much more. 

Overall, my vision is that the Commerce Department will continue to use all its assets to protect, promote, and anticipate what 

America needs to be competitive and innovative in the 21st century. If confirmed, I intend to serve as an active and visible part 

of the President’s economic team. I will bring both concerns and 

ideas from the business community to the forefront, and I envision 

the Commerce Department maintaining its governmentwide leadership in areas such as manufacturing, attracting business investment, innovation, and exporting. 

Your partnership in all of these efforts will be crucial, so I actively seek your input, your advice, and your expertise. 

In closing, I believe very strongly that we must ensure that 

American entrepreneurs can continue to pursue and achieve their 

10 

dreams, as my family has had that opportunity over the past century. If given the honor to serve my country as Commerce Secretary, I will work every day to support these entrepreneurs as 

they create jobs and build our Nation’s prosperity. And I will continue to uphold the core values and deep sense of patriotism that 

has been passed down to me. 

Finally, let me say that, if confirmed, I look forward to working 

with the dedicated and driven public servants at the Commerce Department. 

Thank you, and I look forward to your questions. 

[The prepared statement and biographical information of Ms. 

Pritzker follow:] 

PREPARED STATEMENT OF PENNY PRITZKER, NOMINEE FOR SECRETARY, UNITED STATES DEPARTMENT OF COMMERCE

Thank you for those kind words of introduction. 

Chairman Rockefeller, Ranking Member Thune, and Members of the Committee, 

I am honored to be under consideration for Secretary of the U.S. Department of 

Commerce. With me today is my husband, my rock, and my best friend—Dr. Bryan 

Traubert—as well as my son, Don, who just graduated from college, and my daughter, Rose, who just returned from her first year at college. 

Over the past few weeks, I have had the privilege to meet with many of you to 

discuss the Department and how we can work together to give entrepreneurs and 

businesses the tools they need to create jobs and keep our economy growing. Thank 

you for your valuable time, insights, and perspectives. 

American entrepreneurship is at the heart of my family’s history. 

My great grandfather came to the U.S. from Czarist Russia, dirt poor, at the age 

of 10. He taught himself English, worked several jobs, earned his law degree at 

night, and opened a law practice at the age of 30.My father was the founding president of Hyatt Hotels. When I was a child, he took me to work with him at the motels on weekends. I would play on his adding machines at his office and help out 

with inspections on the property. As an entrepreneur and business builder, he was 

my inspiration. 

My father died when I was just 13, so in high school, as my interest in business 

grew, I turned to my grandfather. On his 80th birthday, my mother said I could 

give him anything I wanted as a gift. So, I decided to write him a note on my green 

stationery. In it, I asked him why he only talked to the boys in the family about 

business, when I was as interested in business as they were. He said, ‘‘Penny, I was 

born in 1896—How am I supposed to know that young women are interested in 

business?’’ He gave me a book on accounting and taught me the basics that summer. 

I was hooked. 

I attended college at Harvard and received my M.B.A. and law degrees simultaneously from Stanford. Then, I began working with my grandfather, uncle, and 

cousins in the family business. 

In the 27 years since then, I have worked as an entrepreneur, both starting businesses from scratch and growing existing ones. It has not always been easy, but I 

have learned from both my successes and failures. 

For example, my first startup involved residential communities for seniors. The 

initial team consisted of me, a secretary, and a lawyer. Like most entrepreneurs, 

I found the first few years to be terrifying, particularly when the early ‘90s recession 

hit. I held myself to high standards, even suggesting to my uncle that he fire me 

if I couldn’t turn things around quickly. Through hard work, we survived and grew, 

and the company remains successful today, employing thousands of people. 

Since then, I have been involved in sectors ranging from hospitality, to real estate, to financial services, and more. I have founded or co-founded five companies 

which have created thousands of jobs across the country. I have also sat on five corporate boards. 

My roles in civic life have been both local and national in scope. 

At the local level: 

• I have served as Chair of the Chicago Museum of Contemporary Art . . . 

• as a member of the Chicago Board of Education . . . 

• and as a co-founder of my family’s foundation, which enriches the lives of Chicago’s children through education, health and fitness, and arts and culture. 

11 

On a broader level, I have served on the boards of the Council on Foreign Relations, Stanford and Harvard universities, the Kennedy Center for the Performing 

Arts, and others. 

Over the past few years, I have served on the President’s Council on Jobs and 

Competitiveness and the President’s Economic Recovery Advisory Board—both of 

which helped stabilize our economy and support job growth. 

Flowing from this, I launched Skills for America’s Future. This initiative promotes 

partnerships between employers and community colleges to address the skills mismatch. In our first local model launched last September—Skills for Chicagoland’s 

Future—we have already secured commitments from companies to hire 1,000 unemployed Chicagoans. 

If confirmed, I intend to leverage the sum of these experiences—as an entrepreneur, as a business leader, and as a citizen deeply committed to American competitiveness—in my service as Commerce Secretary. 

I should note that I have had first-hand experience with the Commerce Department over the years. For example, information from the Census Bureau was the 

foundation for decisions I made when starting the senior-living company I described 

earlier. 

Moreover, I know that thousands of businesses get the information, tools, and 

support they need from the Commerce Department each year: 

• The Department helps businesses obtain intellectual property protections such 

as patents and trademarks from the U.S. Patent and Trademark Office. 

• It promotes exports and fights for a level playing field through the International 

Trade Administration. 

• It helps infuse new ideas and innovation into manufacturers and their supply 

chains through collaborations with the National Institute for Standards and 

Technology. 

• It makes transformative investments that encourage businesses and communities to build and grow through the Economic Development Administration. 

• It helps underserved entrepreneurs get the tools they need to start businesses 

through the Minority Business Development Agency. 

• It brings more opportunity to communities and businesses through broadband 

through the National Telecommunications and Information Administration. 

• It keeps sensitive technologies out of the wrong hands while also ensuring sensible export controls through the Bureau of Industry and Security. 

• And it supports our coastal economies, fisheries, and the daily weather information needs of people and businesses through the National Oceanic and Atmospheric Administration. 

Overall, my vision is that the Commerce Department will continue to use all of 

its assets to protect, promote, and anticipate what America needs to be competitive 

and innovative in the 21st century. 

If confirmed, I intend to serve as an active and visible part of the President’s economic team. I will bring both concerns and ideas from the business community to 

the forefront. And I envision the Commerce Department maintaining its government-wide leadership in areas such as manufacturing, attracting business investment, innovation, and exporting. 

Your partnership in all of these efforts will be critical, so I will actively seek your 

input, advice, and expertise. 

In closing, I believe very strongly that we must ensure that American entrepreneurs can continue to pursue and achieve their dreams—as my family has had 

the opportunity to do over the past century. 

If given the honor to serve my country as Commerce Secretary, I will work every 

day to support those entrepreneurs as they create jobs and build our Nation’s prosperity. And I will continue to uphold the core values and the deep sense of patriotism that have been passed down to me. 

Finally, let me say that, if confirmed, I look forward to working with the dedicated 

and driven public servants at the Commerce Department. 

Thank you. I look forward to your questions. 

A. BIOGRAPHICAL INFORMATION

1. Name (Include any former names or nicknames used): Penny Sue Pritzker. 

2. Position to which nominated: Secretary of Commerce. 

3. Date of Nomination: May 9, 2013. 

12 

4. Address (List current place of residence and office addresses): 

Residence: Information not released to the public. 

Office: 300 N. LaSalle, Suite 1500, Chicago, IL 60654. 

5. Date and Place of Birth: Chicago, Illinois; May 2, 1959. 

6. Provide the name, position, and place of employment for your spouse (if married) and the names and ages of your children (including stepchildren and children 

by a previous marriage). 

Spouse: Dr. Bryan Spencer Traubert, Ophthalmologist, Eye Physicians & Surgeons of Chicago; childern: Donald Pritzker Traubert, age 22; Rose Pritzker 

Traubert, age 20. 

7.List all college and graduate degrees. Provide year and school attended. 

Stanford University—JD/MBA—June 1985 

Harvard College—Bachelor’s Degree—June 1981 

8. List all post-undergraduate employment, and highlight all management-level 

jobs held and any non-managerial jobs that relate to the position for which you are 

nominated. 

Horton Trust Company LLC—Vice President—Investments; 2011 to present. 

PSP Capital Partners, L.L.C.—Chairman & CEO; 2010 to present. 

Pritzker Realty Group, L.L.C.—Chairman; 2009 to present. 

Artemis Real Estate Partners, L.L.C.—Chairman, Co-Founder; 2009 to present. 

TransUnion, LLC—Chairman; 2004 to 2012. 

CIBC Trust Company (Bahamas) Limited, Trustee—Consultant; 2004 to 2011. 

Hyatt Hotels Corporation—Consultant/Board Member; 2003 to present. 

Jan Breyer, Trustee—Consultant to Trusts f/b/o various members of the 

Pritzker Family; 2003 to 2011. 

The Pritzker Organization, L.L.C.—Consultant; 2003 to 2011. 

Marmon Holdings, Inc.—Consultant; 2003 to 2008. 

Pritzker Realty Group, LP—President & CEO; 1998 to 2011. 

CC Development Group, Inc. (aka Vi or Classic Residence)—Chairman; 1987 to 

2011. 

Pritzker & Pritzker—Partner (Share of Profit/Loss); 1987 to 2008. 

Hyatt Development Corporation—Manager/General Analyst; 1985 to 1987. 

9. Attach a copy of your resume. See Exhibit A(9). 

10. List any advisory, consultative, honorary, or other part-time service or positions with Federal, State, or local governments, other than those listed above, within the last five years. 

Chicago Board of Education—Member of School Board, Chicago; June 2011 to 

March 2013. 

President’s Council on Jobs & Competiveness—Member of Council; 2011 to February 2013. 

President’s Economic Recovery Advisory Board—Member of Board; 2009 to 

present. 

11. List all positions held as an officer, director, trustee, partner, proprietor, 

agent, representative, or consultant of any corporation, company, firm, partnership, 

or other business, enterprise, educational, or other institution within the last five 

years. 

See Exhibit A(11). 

12. Please list each membership you have had during the past ten years or currently hold with any civic, social, charitable, educational, political, professional, fraternal, benevolent or religious organization, private club, or other membership organization. Include dates of membership and any positions you have held with any organization. Please note whether any such club or organization restricts membership 

on the basis of sex, race, color, religion, national origin, age, or handicap. 

See Exhibit A(12). 

13 

13. Have you ever been a candidate for and/or held a public office (elected, nonelected, or appointed)? If so, indicate whether any campaign has any outstanding 

debt, the amount, and whether you are personally liable for that debt. 

Chicago Board of Education—Member of School Board (appointed); June 2011 

to March 2013. 

President’s Council on Jobs & Competitiveness (appointed); 2011 to February 

2013. 

President’s Economic Recovery Advisory Board (appointed); 2009 to present. 

14. Itemize all political contributions to any individual, campaign organization, 

political party, political action committee, or similar entity of $500 or more for the 

past ten years. Also list all offices you have held with, and services rendered to, a 

state or national political party or election committee during the same period. 

See Exhibit A(14). 

15. List all scholarships, fellowships, honorary degrees, honorary society memberships, military medals, and any other special recognition for outstanding service or 

achievements. 

2013—Inducted into the American Academy of Arts and Sciences. 

2012—Woodrow Wilson Award for Public Service. 

2011—Ernest C. Arbuckle Award by the Stanford Business School Alumni Association. 

2007—Harvard Business School Club of Chicago Distinguished Leadership 

Award. 

2002—American Jewish Committee Human Rights Medallion. 

2000—John Harvard Fellows Society. 

16. Please list each book, article, column, or publication you have authored, individually or with others. Also list any speeches that you have given on topics relevant to the position for which you have been nominated. Do not attach copies of 

these publications unless otherwise instructed. 

I have done my best to identify books, articles, columns, publications or relevant 

speeches, including a thorough review of personal files and searches of publicly 

available electronic databases. Despite my searches, there may be other materials 

I have been unable to identify, find or remember. I have located the following: 

Articles: 

• The Business of Strengthening School Leadership; Bloomberg Business; March, 

2010 

• Want better economy? Fill skills gap; Politico; June, 2011 

• Unlocking the potential of small business owners: Walter G. Bumphus, Penny 

Pritzker and Jerry Sue Thornton; Cleveland Plain Dealer; September, 2012 

Speeches: 

A. CBRE Women’s Event. April 2005 

• Brief summary: family history, personal influences and professional development, and management style. 

B. YWCA Awards Luncheon. October 20, 2005 

• Brief summary: the importance of teaching young women math, science, and 

technology. 

C. Chicago Finance Exchange. November 2005 

• Brief summary: how to be a successful business woman, what qualities and 

skills are needed to be successful, and how to measure success. 

D. Harvard Business School Club of Chicago 2007 Distinguished Leadership 

Award Acceptance Speech. October 26, 2007 

• Brief summary: definition of leadership, personal influences and professional 

development, the importance of philanthropy, and approach to community service and philanthropic efforts. 

E. Stanford Board of Governor’s Speech. June 22, 2008 

• Brief summary: management style and how corporate boards should successfully prepare for leadership transitions. 

14 

F. Entrepreneurial Women’s Conference, Women’s Business Development Center. 

September 16, 2009 

• Brief summary: overview of the current economic climate, professional development, lessons learned about the qualities that are necessary to be a successful 

entrepreneur. 

G. National Investment Center (NIC) Speech. September 24, 2009 

• Brief summary: the housing and credit markets, the Administration’s initiatives 

impacting the senior living industry, and observations on the future of the senior living industry. 

H. Roosevelt College Speech, Marshall Bennett Institute of Real Estate Keynote: 

‘‘Recession, Recovery & Real Estate: A National Perspective.’’ October 28, 2009 

• Brief summary: the current state of the economy, the economy’s impact on the 

real estate market, government action to stem the crisis, and suggestions for 

future public and private sector action. 

I. National Urban Debate League Keynote: ‘‘A Collaborative Approach to Improving Public Education.’’ April 22, 2010 

• Brief summary: the importance of education in creating a skilled and competitive workforce, the Administration’s workforce development initiatives, and personal commitment to improving public education. 

J. Pension Real Estate Association Speech. October 6, 2010 

• Brief summary: analysis of the economy and its impact on the real estate market, suggestions on what government policies could create opportunities in real 

estate. 

K. President’s Economic Recovery Advisory Board Meeting Remarks. October 4, 

2010 

• Brief summary: the Skills for America’s Future initiative—collaboration between the private sector, labor, Federal Government agencies, and community 

colleges to address workforce development challenges. 

L. White House Summit on Community Colleges Remarks. October 5, 2010 

• Brief summary: the Skills for America’s Future initiative—collaboration between the private sector, labor, Federal Government agencies, and community 

colleges to address workforce development challenges. 

M. White House Summit on Community Colleges Break Out Session Remarks. 

October 5, 2010 

• Brief summary: the Skills for America’s Future initiative—collaboration between the private sector, labor, Federal Government agencies, and community 

colleges to address workforce development challenges. 

N. Address to Association of Community College Trustees, Opening Session of the 

2011 Community College National Legislative Summit Speech. February 14, 2011 

• Brief summary: the Skills for America’s Future initiative, specifically the importance of community colleges and how they can work with the private sector, 

labor, and government to create a workforce with the skills needed to succeed 

in today’s economy. 

O. Acceptance Speech, 2011 Recipient of the Ernest C. Arbuckle Award. March 2, 

2011 

• Brief summary: the importance of workforce development, including the Skills 

for America’s Future initiative, as well as personal commitment to improving 

public education. 

P. Urban Land Institute. April 27, 2011 

• Brief summary: personal influences, the key attributes of being a leader, guidelines for success, and the Chicago real estate market. 

Q. Automotive Communities Consortium Meeting, Indianapolis. September 6, 

2011 

• Brief summary: the importance of workforce development, the Skills for America’s Future initiative, and how the initiative can work with organizations like 

the Automotive Communities Consortium. 

15 

R. 10,000 Small Businesses Advisory Council Press Conference with Mayor Rahm 

Emanuel. September 13, 2011 

• Brief summary: the Skills for America’s Future initiative and the important role 

of community colleges. 

S. DLA Piper Real Estate Summit: Suggested Talking Points for a panel entitled 

‘‘What’s Really Happening in Washington.’’ October 4, 2011 

• Brief summary: the importance of travel and tourism to the U.S. economy, what 

the U.S. government can do to boost travel and tourism, and the potential role 

that green jobs can play in the economic recovery. 

17. Please identify each instance in which you have testified orally or in writing 

before Congress in a governmental or non-governmental capacity and specify the 

date and subject matter of each testimony. 

I appeared as a witness before the U.S. House of Representatives Committee on 

Financial Services Subcommittee on Capital Markets, Insurance and Government 

Sponsored Enterprises regarding ‘‘The Future of Terrorism Insurance’’ on July 27, 

2005. 

18. Given the current mission, major programs, and major operational objectives 

of the department/agency to which you have been nominated, what in your background or employment experience do you believe affirmatively qualifies you for appointment to the position for which you have been nominated, and why do you wish 

to serve in that position? 

I have over 25 years of management experience in industries including real estate, finance, and hospitality, and I have been an entrepreneur who has built businesses from the ground up. I know what it takes to create jobs. If confirmed, I will 

apply the skills and experience I have gained in the private sector to my work as 

Commerce Secretary to help American businesses and workers achieve success in 

the global marketplace. 

Additionally, I have had the opportunity to serve our Nation through my work on 

the President’s Council on Jobs and Competitiveness and the President’s Economic 

Recovery Advisory Board. After recognizing the critical importance of a skilled workforce, I also helped launch Skills for America’s Future, a program aimed at filling 

the millions of open positions across the U.S. by linking about 40 employers with 

over 200 community colleges. 

I am honored to be nominated and would like to serve as Commerce Secretary 

because I believe my background and experience will enable to me to contribute to 

the work the Commerce Department does every day to promote economic growth 

and job creation. 

19. What do you believe are your responsibilities, if confirmed, to ensure that the 

department/agency has proper management and accounting controls, and what experience do you have in managing a large organization? 

Twenty-five years of business experience gives me a solid foundation to manage 

the Department of Commerce. I am chair or former chair of seven different companies with responsibility for thousands of employees and for investments across the 

globe. I have also founded or co-founded five different companies, and served on five 

corporate boards and those of numerous nonprofits. I believe the top executive at 

any organization, whether it is a business or the Commerce Department, must take 

full responsibility for wise and sound employee and financial management. 

20. What do you believe to be the top three challenges facing the department/ 

agency, and why? 

1. Fulfilling the Commerce Department’s vital mission to promote jobs and 

growth in a budget constrained environment. If confirmed, I will make certain 

that the Commerce Department continues to lead the President’s agenda in promoting U.S. manufacturing, innovation, exports, and investment in the U.S. by 

U.S. and foreign companies. Commerce also plays a vital role in scientific research, providing economic data, and weather and climate information that are 

the foundations of innovation and business and government decision making. In 

a budget constrained environment, this leadership requires sound management, 

strategic vision, prioritization and close consultation with stakeholders and Congress. 

2. Raising awareness of the Department’s services and strengthening partnerships with businesses and communities. I believe the Commerce Department 

performs many valuable services that enable businesses and workers to achieve 

success in the global marketplace. These include promoting exports of U.S. 

goods and services, safeguarding intellectual property, enforcing our trade laws 

to enable American workers and companies to compete on a level playing field, 

16 

and investing in R&D and infrastructure, to name a few. If confirmed as Secretary, one of my main responsibilities will be to communicate broadly the value 

of the Department’s many services and functions to enable the Department to 

reach new businesses and promote economic growth. 

Strengthening partnerships with businesses and communities will also improve 

the delivery and impact of the Department’s services. Partnerships with communities, businesses, and vocational and research institutions that promote the 

Department’s priorities are already a hallmark of many Department of Commerce programs. If confirmed, I will work with Congress and all stakeholders 

to ensure these partnerships are effective in creating good jobs that keep U.S. 

companies, institutions and workers at the cutting edge of innovation and competitiveness. 

3. Continue improvements to the Commerce Department’s operational management and efficiency. At the operational level, the Commerce Department reduced administrative costs by $185 million in FY12, an estimated $176 million 

in FY13, and a projected $194 million in Fiscal Year 2014. Especially in the current budget environment, such administrative savings are necessary to achieving Commerce’s mission. Looking ahead, Commerce must continue to implement 

reforms to operate more efficiently. If confirmed, I will continue to focus on getting the most out of the taxpayers’ dollars by engaging with employees and 

stakeholders on ways to achieve greater efficiency and asking tough questions 

of senior managers at every opportunity. 

B. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation agreements, and 

other continuing dealings with business associates, clients, or customers. Please include information related to retirement accounts. 

I participate in the following: (1) the Pritzker Realty Group, L.L.C. 401(k) plan 

($1,223,835); and (2) the Wm. Wrigley Jr. Co. deferred compensation plan, which 

will become available to me in 2020 ($102,053.24). 

I also own 8,197 shares of Hyatt Hotels Corporation Class A Common Stock, (restricted stock units) with Hyatt Hotels Corporation pursuant to the Hyatt Hotels 

Corporation Non-Employee Director Compensation Program & the Hyatt Hotels 

Corporation Deferred Compensation Plan for Directors. The restricted units will be 

settled in Class A Common Stock upon the termination of my service as a Director. 

2. Do you have any commitments or agreements, formal or informal, to maintain 

employment, affiliation, or practice with any business, association or other organization during your appointment? If so, please explain. No. 

3. Indicate any investments, obligations, liabilities, or other relationships which 

could involve potential conflicts of interest in the position to which you have been 

nominated. 

In connection with the nomination process, I have consulted with the Office of 

Government Ethics and the Department of Commerce’s designated agency ethics official to identify potential conflicts of interest. Any potential conflicts of interest will 

be resolved in accordance with the terms of an ethics agreement that I have entered 

into with the Department’s designated agency ethics official and that has been provided to this Committee. I am not aware of any other potential conflicts of interest. 

4. Describe any business relationship, dealing, or financial transaction which you 

have had during the last ten years, whether for yourself, on behalf of a client, or 

acting as an agent, that could in any way constitute or result in a possible conflict 

of interest in the position to which you have been nominated. 

In connection with the nomination process, I have consulted with the Office of 

Government Ethics and the Department of Commerce’s Designated Agency Ethics 

Official to identify potential conflicts of interest. Any potential conflicts of interest 

will be resolved in accordance with the terms of an ethics agreement that I have 

entered into with the Department’s designated agency ethics official and that has 

been provided to this Committee. I am not aware of any other potential conflicts 

of interest. 

5. Describe any activity during the past ten years in which you have been engaged 

for the purpose of directly or indirectly influencing the passage, defeat, or modification of any legislation or affecting the administration and execution of law or public 

policy. 

I appeared as a witness before the U.S. House of Representatives Committee on 

Financial Services Subcommittee on Capital Markets, Insurance and Government 

Sponsored Enterprises regarding ‘‘The Future of Terrorism Insurance’’ on July 27, 

2005. 

17 

6. Explain how you will resolve any potential conflict of interest, including any 

that may be disclosed by your responses to the above items. 

In connection with the nomination process, I have consulted with the Office of 

Government Ethics and the Department of Commerce’s designated agency ethics official to identify potential conflicts of interest. Any potential conflicts of interest will 

be resolved in accordance with the terms of an ethics agreement that I have entered 

into with the Department’s designated agency ethics official and that has been provided to this Committee. I am not aware of any other potential conflicts of interest. 

C. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics by, or been the 

subject of a complaint to any court, administrative agency, professional association, 

disciplinary committee, or other professional group? If so, please explain. No. 

2. Have you ever been investigated, arrested, charged, or held by any Federal, 

State, or other law enforcement authority of any Federal, State, county, or municipal entity, other than for a minor traffic offense? If so, please explain. No. 

3. Have you or any business of which you are or were an officer ever been involved as a party in an administrative agency proceeding or civil litigation? If so, 

please explain. 

Yes, See Exhibit C(3)—In addition, I have been associated with a number of corporations and other entities and, from time to time, such entities (including, in some 

instances, their directors, officers and employees) have been involved, in the ordinary course, in judicial or regulatory proceedings relating to their businesses. 

4. Have you ever been convicted (including pleas of guilty or nolo contendere) of 

any criminal violation other than a minor traffic offense? If so, please explain. No. 

5. Have you ever been accused, formally or informally, of sexual harassment or 

discrimination on the basis of sex, race, religion, or any other basis? If so, please 

explain. No. 

6. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be disclosed in connection with your nomination. 

None to my knowledge. 

D. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with deadlines for information set by congressional committees? Yes. 

2. Will you ensure that your department/agency does whatever it can to protect 

congressional witnesses and whistle blowers from reprisal for their testimony and 

disclosures? Yes. 

3. Will you cooperate in providing the Committee with requested witnesses, including technical experts and career employees, with firsthand knowledge of matters 

of interest to the Committee? Yes. 

4. Are you willing to appear and testify before any duly constituted committee of 

the Congress on such occasions as you may be reasonably requested to do so? Yes. 

EXHIBIT A(9)—RE ́SUME ́ OF PENNY S. PRITZKER

Education 

Harvard College, Cambridge, MA 

1981—Bachelors 

Stanford Business School/Stanford Law School, Palo Alto, CA 

1985—MBA/JD 

Work History 

2011–Present 

Horton Trust Company LLC 

300 N. LaSalle, Suite 1500 

Chicago, IL 60654 

Position: Vice President—Investments 

2010–Present 

PSP Capital Partners, L.L.C. 

300 N. LaSalle. Suite 1500 

Chicago, IL 60654 

Position: Chairman 

18 

2009–Present 

Pritzker Realty Group, L.L.C. 

300 N. LaSalle, Suite 1500 

Chicago, IL 60654 

Position: Chairman 

2009–Present 

Artemis Real Estate Partners, L.L.C. 

5425 Wisconsin Avenue 

Suite 802 

Chevy Chase, MD 20815 

Position: Chairman and Co-Founder 

2004–2012 

TransUnion 

555 West Jackson, 7th Floor 

Chicago, IL 60606 

Position: Chairman 

2003–2011 

The Pritzker Organization, L.L.C. 

71 South Wacker Drive, Suite 4700 

Chicago, IL 60606 

Position: Consultant 

2003–2008 

Marmon Holdings, Inc. 

225 West Washington 

Chicago, IL 60606 

Position: Consultant 

2003–Present 

Hyatt Hotels Corporation (Global Hyatt Corporation) 

71 South Wacker Drive 

Chicago, IL 60606 

Position: Consultant/Board Member 

2003–2011 

Jan Breyer—Trustee (Trusts f/b/o various members of the Pritzker Family) 

71 South Wacker Drive, Suite 4700 

Chicago, IL 60606 

Position: Consultant 

2004–2011 

CIBC Trust Company (Bahamas) Limited 

Goodmans Bay Corporate Center 

West Bay Street 

Nassau, Bahamas 

Position: Consultant 

1998–2011 

Pritzker Realty Group, L.P. 

71 South Wacker Drive, Suite 4700 

Chicago, IL 60606 

Position: President & CEO 

1987–2011 

CC Development Group, Inc. and Classic Residence Management Limited Partnership—d/b/a Vi 

71 South Wacker Drive 

Chicago, IL 60606 

Position: Chairman 

1987–2008 

Pritzker & Pritzker 

200 West Madison Street 

Chicago, IL 60606 

Position: Partner (Share of Profit/Loss) 

19 

1985–1987 

Hyatt Development Corporation 

200 West Madison 

Chicago, IL 60606 

Position: Manager/General Analyst 

Penny Pritzker is a civic and business leader. An active investor, Ms, Pritzker is 

founder, chairman and CEO of PSP Capital Partners and its affiliate, Pritzker Realty Group (PRG), as well as chairman and co-founder of Artemis Real Estate Partners. 

PSP Capital Partners, headquartered in Chicago, is a private, family owned firm 

that invests in dynamic businesses and with funds managers worldwide to create 

long term value. Pritzker Realty Group, an operator of and investor in commercial 

properties, is focused on a broad range of direct equity and debt investments in real 

estate assets, portfolios and joint ventures. Artemis Real Estate Partners, located 

in the Washington D.C. area, is a real estate investment company that manages institutional capital to generate attractive, risk-adjusted returns. 

With more than 25 years of experience in the real estate, hospitality, senior living, 

financial services and private equity industries, Ms. Pritzker previously developed 

such diverse companies as Vi (formerly Classic Residence by Hyatt), a leader in luxury living for older adults, The Parking Spot, a large U.S. network of off-site airport 

parking facilities, and Centergate Residential, a vertically-integrated, multifamily 

development, investment and management company. 

President Obama appointed Ms. Pritzker to the President’s Council for Jobs and 

Competitiveness which advises the Administration on economic growth and job creation. Ms. Pritzker previously served on the President’s Economic Recovery Advisory 

Board. She was National Co-chair of Obama for America 2012 and was National Finance Chair of the 2008 Barack Obama for President Campaign. 

She serves on the board of Hyatt Hotels Corporation. She’s a former board member of the Wm. Wrigley, Jr. Company, Marmon Group and LaSalle Bank Corporation. She’s past chairman of TransUnion, a global financial services information 

company. 

Much of Ms. Pritzker’s civic work focuses on public education. She was a member 

of the Chicago Board of Education from June 2011 through March 2013. She’s advisory board chairman of Skills for America’s Future, The Aspen Institute. SAF is a 

national initiative that brings together businesses, community colleges and others 

to prepare workers for 21st century jobs. In 2012, she helped launch Skills for 

Chicagoland’s Future, the first city model of SAF. She’s past chair of the Chicago 

Public Education Fund, the first venture philanthropy to raise private equity to invest in public schools. She and her husband, Dr. Bryan Traubert, through The 

Pritzker Traubert Family Foundation, fund innovative initiatives to improve public 

education and strengthen school leadership. As well, she serves on the Civic Committee of the Commercial Club of Chicago. 

Ms. Pritzker is a board member of the Council on Foreign Relations and of The 

Economic Club of Chicago. She serves as trustee of Stanford University and of the 

John F. Kennedy Center for the Performing Arts. She’s a newly elected member of 

the American Academy of Arts and Sciences. She’s an advisory board member of 

Brookings institution’s Hamilton Project, a former chairman of the board of the Museum of Contemporary Art in Chicago, and a former member of the Harvard University Board of Overseers. 

Ms. Pritzker earned her bachelor’s degree in economics from Harvard University 

and J.D. and M.B.A. degrees from Stanford University. 

20 

Exhibit A(11) 


523PENN1.eps 523PENN2.eps
21 


523PENN3.eps 523PENN4.eps
22 


523PENN5.eps 523PENN6.eps
23 


523PENN7.eps 523PENN8.eps
24 


523PENN9.eps 523PENN10.eps
25 


523PENN11.eps 523PENN12.eps
26 


523PENN13.eps 523PENN14.eps
27 


523PENN15.eps 523PENN16.eps
28 


523PENN17.eps 523PENN18.eps
29 


523PENN19.eps 523PENN20.eps
30 


523PENN21.eps 523PENN22.eps
31 


523PENN23.eps 523PENN24.eps
32 


523PENN25.eps 523PENN26.eps
33 


523PENN27.eps 523PENN28.eps
34 


523PENN29.eps 523PENN30.eps
35 


523PENN31.eps 523PENN32.eps
36 


523PENN33.eps 523PENN34.eps
37 


523PENN35.eps 523PENN36.eps
38 


523PENN37.eps 523PENN38.eps
39 


523PENN39.eps 523PENN40.eps
40 

Exhibit A(12) 


523PENN41.eps 523PRIT1.eps 523PRIT2.eps
41 


523PRIT3.eps
42 

Exhibit A(14) 


523PS1.eps
43 


523PS2.eps
44 


523PS3.eps
45 


523PS4.eps
46 

Exhibit C(3) 


523EXC1.eps 523EXC2.eps
47 


523EXC3.eps 523EXC4.eps
48 

The CHAIRMAN. Thank you, Ms. Pritzker. I will ask the first one, 

and it relates to cybersecurity, which is sort of embarrassing, I 

think, for the Congress because for four years now, all the defense 

and intelligence people have declared it the greatest national 

threat to our security. Not Al-Qaeda, not other threats, but 

cybersecurity coming from computers. We made computers, now we 

all use them, and now they are threatening us. 

So we are trying to put together a cybersecurity bill. There are 

three committees that have jurisdiction. We are one of them. And 

the Department of Commerce obviously plays a very key role in a 

wide range of cybersecurity efforts, including setting international 

standards. 

You will be conducting technical research and working with businesses to improve risk management. In fact, NIST is currently 

leading the effort with the approval of all parties so far. Not that 

many people know NIST, but it is just incredible the brains that 

they have over there and the experience that they have. It is an 

extraordinary place. 

They are leading the effort to develop a cybersecurity framework 

within industry to protect our most critical infrastructure from 

cyber-attack. And that is a tricky subject: critical infrastructure. 

Ms. PRITZKER. Yes. 

The CHAIRMAN. If confirmed, what priority will you give to the 

Department’s cybersecurity work, and how will you bring the full 

range of the Department’s capabilities to NIST, the Bureau of Industry and Security, and the National Trade Administration, and 

NTIA to the problem? 

Ms. PRITZKER. Senator, thank you for that question. I absolutely 

understand the threat of cybersecurity. One of the businesses that 

I have been involved in experiences 3.8 billion—yes, billion—cyber 

incidents a month. That is three times what it experienced 3 years 

ago. And the complexity of those cyber incidents are 50 times 

greater than it was 3 years ago. So I fully appreciate what we are 

up against here. And if I am confirmed, I will work closely with 

NIST, and use the full resources of the Commerce Department to 

make sure that we help develop a cyber-framework, as NIST has 

been charged with, as well as develop a close working relationship 

with the business sector to make sure that we are addressing these 

cybersecurity threats. 

The CHAIRMAN. Thank you. I had—I would say to my friend, 

Senator Thune, a very, very good talk with the chairman of the appropriate committee handling cybersecurity in the House. And we 

have had lots of conflict over here about, you know, what is volVerDate Nov 24 2008 07:34 Apr 10, 2015 Jkt 075679 PO 00000 Frm 00052 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\94056.TXT JACKIE

523EXC5.eps
49 

untary, who sets the standard, do you have to meet a certain 

standard, all this kind of thing. 

And as he spoke, I said, every word that you have just said to 

me, I agree with. I have never met him before, and we are going 

to meet. But it is, I think, for the first time I think we see a real 

opportunity of getting a bipartisan cybersecurity bill. It will be a 

miracle if we do it, but as I say, it is the greatest national threat. 

I will ask one more question, and this is on forensic science. I 

have a fascination for forensic science, and I am finding that some 

of my fascination is misplaced; that the more studies that go on, 

and NIST is every important in this as well, that our system is 

badly in need of renewal; that there are a lot of people who are in 

prison who should not be in prison. There are a lot of people who 

are not in prison who should be in prison, because forensics, which 

through, you know, TV programs we take as absolute—here is a 

follicle of hair, bang, he is guilty, or she is guilty. Well, it is not 

quite that easy, and we are discovering that now. 

So getting forensics right is of enormous importance. So if confirmed, what do you see as your role in supporting NIST as it collaborates with the Department of Justice to increase the reliability 

of forensic science? 

Ms. PRITZKER. Senator, forensic science is something I know 

firsthand. In the State of Illinois, I was involved with making sure 

that we used all the DNA kits, and that they were actually evaluated. And that had significant implications on various outcomes in 

our justice system. So I appreciate how important it is to get it 

right because there are consequences of using forensic science. 

If I am confirmed as Secretary of Commerce, I will work with 

NIST and the entire Commerce Department to make sure that we 

bring to the forefront the best science and that we are working 

with the Department of Justice to bring that forward as quickly as 

possible. 

The CHAIRMAN. But it is stunning, is it not, that for a couple of 

decades we thought that it was an absolute science. It was just 

clear. You look through the microscope, you saw what you saw, and 

then you made your judgment from that. And it just does not work 

that way. So, I think it is not talked about much in public discussion, but I think getting forensic science up to date is of enormous 

importance. So I appreciate your answer. 

Senator Thune. 

Senator THUNE. Thank you, Mr. Chairman. Ms. Pritzker, the justifiable public outrage over the actions taken by the IRS against 

conservative organizations underscores how critical it is for government leaders to scrupulously honor the public trust. My question 

is, what, if anything, can you pledge this committee regarding your 

commitment to safeguard the trust that would be bestowed upon 

you as a Cabinet Secretary? 

Ms. PRITZKER. Well, Senator, I think it is important that I bring 

my core values to the table if I am confirmed as Secretary of Commerce. And for me, being known as someone who is trustworthy, 

someone of high integrity and high ethics is what I strive to be. 

And so, if I am confirmed, I hope that I will set the tone at the 

Commerce Department, such that the taxpayer, and all Americans 

50 

as well as the Senate and the House have trust and full faith in 

the work of the Commerce Department. 

Senator THUNE. OK. We have all watched this week with what 

happened in Moore, Oklahoma, and our hearts and prayers go out 

to the people who were struck by that deadly and devastating tornado this week. At the same time, we can be grateful that the 

warnings and alerts issued by the Commerce Department’s National Weather Service helped to save lives. 

As you learn firsthand, if confirmed—you will learn, I should 

say—every department and agency is making tough choices in the 

face of necessary budget cuts. And so it does require proper planning and prioritization. It is no longer an option to do that. 

Can we have your commitment that if confirmed, you will ensure 

that budget cuts are made in ways that prioritize funding for the 

Department’s public safety missions, like the delivery of timely 

warnings about severe weather? 

Ms. PRITZKER. Senator, the work of the National Weather Service 

is vital, as we know, to not just property, but, frankly, to lives, 

most importantly, to the lives of Americans. We have seen this, as 

you said, in Oklahoma. We have seen it in Hurricane Sandy. We 

have seen it in the floods that we have been experiencing in the 

Midwest. They remind us of the critical mission of saving lives that 

the National Weather Service does. 

If I am confirmed, I will work with the National Weather Service 

to make sure that the impacts on our budgets do not impact the 

critical mission that the National Weather Service provides. 

Senator THUNE. And can you pledge to us as well that you will 

work with this committee to find efficiencies and ways to stretch 

taxpayer dollars further when it comes to the various responsibilities of the Commerce Department? 

Ms. PRITZKER. Senator, in my 27 years in business, I have had 

to learn to stretch dollars, and so that is something that I, if I am 

confirmed, have experience in. 

I think the first thing that is required is to put in place good 

leadership throughout the organization that shares the same approach, and then work with that leadership to be able to identify 

ways that the Commerce Department can be as effective, but more 

efficient. 

Senator THUNE. OK. As I mentioned earlier in my opening remarks, some have criticized the Administration as being anti-business. In 2010, the Chairman of the Business Roundtable and COO 

of Verizon famously said the Administration was fostering this, and 

this is, I quote, ‘‘an increasingly hostile environment for investment 

and job creation.’’ 

If confirmed, you would bring a track record of entrepreneurial 

activity in the private sector as well as service on the President’s 

Jobs Council to the position of Secretary. If confirmed, what will 

you do to foster a more pro-business attitude within the Administration? And maybe as a follow up to that, can you provide some 

examples of actions that you have taken or strategies that you 

have used successfully to create jobs in the private sector? 

Ms. PRITZKER. Well, Senator, when the President asked me if I 

was interested in being nominated for this position, we discussed 

very clearly his desire that I serve as a bridge between the AdminVerDate Nov 24 2008 07:34 Apr 10, 2015 Jkt 075679 PO 00000 Frm 00054 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\94056.TXT JACKIE
51 

istration and the business community. He felt that if I could play 

that role as part of his economic team, that the relationship would 

be improved. And that is something that I look forward to working 

very hard on. 

In terms of examples of when I have created jobs, Senator, I 

started a senior living company that today employs about 3,500 

people. I have started a real estate investment firm that today employs dozens of people. I have started a number of businesses, as 

well as grown businesses, and grown the number of employees. 

When I think about my job as a business person, the thing that 

made me most nervous was to try and make the best decisions that 

I could because I knew how many lives were impacted by those decisions. And the ability to be not just a business leader, but a job 

creator is something that I have been very proud of and I will bring 

that experience to the role if I am confirmed as Secretary of Commerce. 

Senator THUNE. Thank you. And, Ms. Pritzker, I need to ask this 

question. There has been a lot written about this as you know. But 

with regard to the failure of Superior Bank in 2001, it was a bank 

that was one of the early leaders in subprime lending. Some of 

your defenders have stated that you had no active role in management of the bank for 7 years prior to the bank’s failure. But according to a report issued by the FDIC’s inspector general, concerns 

were raised by the Office of Thrift Supervision about the bank’s 

mortgage banking practices as early as 1993 when you were still 

Chair of the bank’s board. 

In addition, others have pointed out that you continued to serve 

as a board member for Superior Bank’s holding company and sat 

on the bank’s audit company—or audit committee until its failure. 

Could you just tell us what role you played at the bank in the 

years leading up to Superior Bank’s failure in 2001? 

Ms. PRITZKER. Well, Senator, thank you for giving me the opportunity to tell the story. 

So, my Uncle Jay and a friend of his bought a bank in 1989. It 

was a failed bank. I was never an officer of the bank, nor was I 

involved in management. I was chairman of the board from 1991 

until 1994, when the primary purpose or activity at the bank was 

to clean up the balance sheet of the bank, which had a lot of problem loans. I stepped down as chairman of the bank, and the bank 

maintained its own separate bank board, seven years before the 

bank failed. 

Regulators concluded in 2000 that certain assets on the bank’s 

balance sheet were overvalued after a change in accounting rules. 

On the holding company, what one looks at is the balance sheet 

and the financial statements, and deals with all the subsidiaries of 

the holding company. 

Unfortunately, when the problems arose, my uncle had recently 

passed away. So I stepped in on behalf of the 50 percent ownership 

of my family to try to salvage the situation. Unfortunately, those 

negotiations failed and the bank failed. And so then, shortly thereafter, I went to the FDIC voluntarily, as the family only owned 50 

percent of the bank. But I voluntarily went to the FDIC and said, 

this was post-9/11, and that I come from a family that is very patriotic. And I said to the head of the FDIC, this country has been very 

52 

good to our family, and we need to make this situation right. We 

would like to negotiate something to make this right for the depositors. And that negotiation ensued, and my family voluntarily 

agreed to pay $450 million. 

I was not on the audit committee of the board. That is something 

that is not right. And it was the right thing for us to do both for 

the depositors and for us as a family. 

Senator THUNE. Let me just—a quick follow-up, if I might—— 

Ms. PRITZKER. Sure. 

Senator THUNE.—just a minute here, Mr. Chairman. So ultimately there were a number of the bank’s uninsured depositors 

that had claims that they lost over $100,000 worth of savings, including one who reportedly deposited her entire retirement account 

with Superior a month before it failed. 

My question is, and it is two parts. What do you have to say to 

those depositors who lost significant sums of money because of this 

venture, and what lessons did you learn from your experience at 

Superior Bank that will inform your role as Secretary of Commerce, if you are confirmed? 

Ms. PRITZKER. Well, Senator, I regret the failure of Superior 

Bank. It is—it was not an outcome or a situation that I am—you 

know, I feel very badly about that. 

The lessons that I have learned are really about good management, good governance structure, the importance of diversification 

and risk management, and transparency. 

Senator THUNE. OK. Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Thune. 

Senator Warner. 

STATEMENT OF HON. MARK WARNER, 

U.S. SENATOR FROM VIRGINIA 

Senator WARNER. Thank you, Mr. Chairman, and welcome, Ms. 

Pritzker. 

Ms. PRITZKER. Thank you, Senator. 

Senator WARNER. My hope is that this committee will recommend you and that you will be able to serve, I think, as someone 

who—a deep background in business. This is a voice that will be 

needed in the Administration and will help us again—help this 

economy recover, and focus again on greater job creation. Toward 

that end, I want to raise a couple of quick questions. 

One, one of the areas that will not directly fall within—at the 

Department, but down a bit, is the National Telecommunications 

and Information Administration, NTIA, and part of that was spectrum management. The President has laid out a very ambitious 

goal to try to get 500 megahertz spectrum available over the next 

10 years. 

I would like for you to speak a little bit about how we can make 

sure that we keep that on track. And one of our challenges is to 

make sure that our Federal entities are a little more responsive in 

terms of spectrum sharing and trying to make sure that we take 

full opportunity and get full economy-wide value of this public 

asset. I would like you to speak to that issue, if you might. 

Ms. PRITZKER. Well, Senator, I support your belief in the President’s effort to try to find the 500 megahertz of spectrum to make 

53 

available for commercial use. It is my understanding that, at this 

point, NTIA has made available from the government side about 

100 megahertz of spectrum. 

Now we have to look harder and at the various opportunities. 

Spectrum sharing is something that is, I know, a high priority for 

the NTIA. If I am confirmed, I will continue to look and see how 

we can find more spectrum that can be made available for commercial use. 

I appreciate how important it is that we have spectrum available 

for the explosion of the wireless world that we are all living in. 

Senator WARNER. Well, I might just add, I know there is some 

spectrum in that 1755 to 1780 megahertz range, that 25 megahertz 

of spectrum that we could move quicker on. I will not ask you to 

speak to that today. We are just starting to get into the weeds already, but there have been some that say let us take a bigger 

block. We ought to take what we can while we can, and move forward on that. 

Another area that you are going to have at least oversight over 

is the Patent and Trade Office. I think we are all concerned of the 

increased amount of litigation in the patent field. I think we are 

all concerned that entrepreneurs are victims more and more often 

of patent trolls. I think we have seen unfortunately in my old industries massive allocations of capital to basically build patent arsenals that could be better utilized in terms of innovative and 

breakthrough technology rather than simply building up arsenals 

to—in what could be, frankly, litigation wars. 

I do not know if you might want to have some general comments 

about what we can do to try to make sure that we get better ideas 

into the marketplace and try to decrease the—what I think is the 

dramatic increase of patent litigation, much of it not geared at real 

innovation protection, but really just about trying to sometimes 

transfer wealth between large entities. 

Ms. PRITZKER. Well, Senator, I share your concern about that. 

In terms of innovation, as an entrepreneur, I know that time to 

market and speed to market are so important. And the Patent Office and the patent reform legislation that you all passed is extremely important in that way, and in helping the Patent Office become more and more efficient. 

In terms of the large amount of litigation that seems to be emanating from various non-producing organizations, that is a real 

challenge and something that I need to look into more, and if I am 

confirmed, something that I would focus on. 

Senator WARNER. Two other quick areas. One, and I just—this 

is a more editorial comment than specific question. But, you know, 

the Commerce Department has a wide array of programs. I candidly believe this is an agency that is ripe for program consolidation and review. We need to be thinking smarter. I personally believe that we ought to give the President’s—this President and future presidents the ability that any Governor has had to do executive reorganization. I will not open that can of worms at this hearing today, but my hope would be is that you will come in with a 

fresh look—an entrepreneur’s and business person’s look—at the 

wide variety of programs within the Commerce Department, look 

54 

at where there can be streamlining, look where there can be consolidation, look where we can better bang for the buck. 

And I might just, you know, again, editorialize and highlight one 

area that we have worked on and we had an opportunity to have 

a brief conversation about. We do a very bad job in this country of 

supporting insourcing of jobs back into America. Most of that economic development activity is done at the State and local level. I 

have been trying to get this Administration for years to actually 

look at how we might support State and local economic development efforts at a Federal level to bring jobs back into America for 

a whole host of reasons, jobs that had been outsourced over the 

past few years. Companies are looking at bringing manufacturing 

and other production jobs back to this country particularly in rural 

areas. 

My hope is you will, one, as my time ticks down, look at streamlining all programmatic areas within the Commerce Department, 

and, two, work with me and other members—this is some bipartisan legislation I have actually got with Congressman Frank Wolf 

in the House, at how we can do a better job at the Federal level 

to support insourcing of jobs back into this country. 

Ms. PRITZKER. Well, Senator, I think insourcing is a great opportunity, particularly as you see energy costs falling in the United 

States, and our strong rule of law, our terrific labor force, and our 

great patent protection. So I think there is a terrific opportunity. 

I look forward to working with you on that. 

Senator WARNER. Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Warner. I should warn my 

colleagues that the floor is not behaving properly, and they are 

talking about a 12 vote. We are trying to do everything we can to 

get them to push it back. But what I would suggest is on my side 

of the dais here, that we cut our 7 minutes down to 5 minutes, and 

the other side of the aisle will have 7 minutes. 

Senator Fischer. 

STATEMENT OF HON. DEB FISCHER, 

U.S. SENATOR FROM NEBRASKA 

Senator FISCHER. Thank you so much, Mr. Chairman. I will try 

to take five to help out here. 

Senator Thune asked you about finding efficiencies. And when 

we had the pleasure of meeting and having a good conversation, I 

also brought up about looking at streamlining the Department, 

looking for efficiencies, and asked if you had any examples at that 

time. Have you thought of any specific examples or maybe in different program areas where you would look to find some efficiencies? 

Ms. PRITZKER. Well, Senator, I commit that I am very interested 

in focusing on this. I have to confess that I have been tied up having the pleasure of meeting you and all your colleagues, and so I 

have not been able to dig in yet. But I do look forward, if I am confirmed, to having the opportunity to do that. 

Senator FISCHER. That would be great. Thank you. 

Ms. PRITZKER. Thank you. 

Senator FISCHER. Also we have a manufacturing sector here in 

this country that has faced challenges for many, many years. I beVerDate Nov 24 2008 07:34 Apr 10, 2015 Jkt 075679 PO 00000 Frm 00058 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\94056.TXT JACKIE
55 

lieve that we have to level the international playing field. If we are 

going to ensure that our manufacturing sector is competitive, I 

think we have to look at regulations. We have to look at trade as 

well. Would you agree with that? 

Ms. PRITZKER. Senator, I agree completely. I think that leveling 

the playing field and making sure that our good American companies are able to play globally on a level playing field is extremely 

important. 

Senator FISCHER. Would you commit to looking at those regulatory policies, and I believe especially the trade policies that we 

have in this country, so that we can ensure that we have a more 

level playing field? 

Ms. PRITZKER. Senator, if I am confirmed, I will spend a lot of 

time focused on trade and regulation. 

Senator FISCHER. Thank you. I happen to believe that trade is 

vital for not just manufacturing, for ag products as well. And I see 

that as a definite area for growth and job creation, so I appreciate 

your focus on that. 

Senator Warner was asking you about spectrum, and as you 

know from our discussion, that is an important issue, I believe, for 

the country, that we have to look at add spectrum. 

There has been some discussion on how accurate the cost estimates have been with regards to spectrum. I believe the Department of Defense in the past has estimated that it would cost $4.6 

billion to clear that 1755 to the 1850 band. And NTIA estimates 

that it is going to cost $18 billion. 

How are we going to have more accurate estimates with that? Do 

you see any way forward? 

Ms. PRITZKER. Well, Senator, I must confess I am not precisely 

familiar with that particular band, but I know that is something 

NTIA is very focused on, and if I am confirmed, I would work with 

the head of NTIA to make sure that we are getting the best estimates of what it cost if we were to share spectrum or move spectrum. I realize the importance of trying to make more spectrum 

available for commercial use. And I endorse that endeavor. And so, 

if confirmed, I will push the organization to make sure that we look 

carefully, and that the information is accurate. 

Senator FISCHER. Thank you. Thank you very much, and I look 

forward to working with you in the future. Thank you. 

Ms. PRITZKER. Thank you, Senator. 

Senator FISCHER. Thank you, Mr. Chair. 

The CHAIRMAN. That is all? 

[Laughter.] 

Senator FISCHER. I am helping you. 

[Laughter.] 

The CHAIRMAN. You are, Senator Fischer, especially to Senator 

Blunt, because if he leaves, this is going to be a disaster. I see Senator Scott. 

STATEMENT OF HON. TIM SCOTT, 

U.S. SENATOR FROM SOUTH CAROLINA 

Senator SCOTT. Thank you, Mr. Rockefeller. We are always prepared to work in a bipartisan fashion in reducing the time, at least 

in questioning Ms. Pritzker. 

56 

I enjoyed our conversation just in the last couple of days, and we 

hit on a couple of topics that I thought were very important to the 

future of America, one being trade. I am a big free trader. I know 

there are folks who believe in fair trade. And we had a robust conversation about China, which I think is important to consider, from 

currency issues to enforcing parts of our free trade agreements that 

have already been passed. 

But what comes to my heart very quickly is the issues that we 

face in South Carolina. I believe that South Carolina’s manufacturing base is a part of the solution for our future. If we as Americans do not continue to make things that are tangible, we have a 

very long road ahead of us. 

So Mr. Warner and I will be working on the Subcommittee of 

Competiveness, Innovation, and Export Promotion. I hope that we 

will have many opportunities to work with you as well if you are 

confirmed. 

In South Carolina, we are proving the fact that Americans can 

make things again. We have BMW in the Greenville market. We 

have Boeing that continues to expand in the Charleston market. 

And then we have the second highest tire concentration with companies like Michelin, Bridgestone, Continental coming to our state 

as well and expanding. 

And as we consider the topic of insourcing, having jobs come 

back to America, we can look no further than UTC and Otis Elevators, that now have a presence in Florence, South Carolina, with 

400 jobs that have been insourced back. 

My question to you is, I would like to hear from you your 

thoughts on how we can further promote U.S. industry and encourage more foreign investment to come to places throughout the 

country, and of course, specifically, South Carolina. 

Ms. PRITZKER. Well, Senator, I support your enthusiasm for 

American manufacturing. My family has been in the manufacturing business for over 50 years, and my uncle, who ran that effort, used to bemoan the fact that we had lost so many manufacturing jobs, and that the implications for the United States were 

not good because, as you know and you are well aware, innovation 

comes from being close to the factory floor. I think it is something 

like 72 percent of private R&D dollars are from the manufacturing 

sector, and 90 percent of new patents are from the manufacturing 

sector. 

So, if I am confirmed, bringing manufacturing jobs back to the 

United States will be a high priority. You know, I think that we 

sit in a very competitive position. We as Americans are extremely 

competitive with our low energy costs, with our terrific labor force, 

with our great rule of law, with our patent system. I think there 

is an enormous opportunity to really grow and encourage companies to put a new plant in the United States. And if I am confirmed 

as Commerce Secretary, that is something that I will work very 

hard to advocate for. 

Senator SCOTT. Thank you. The second question really helps us 

bridge the gap and create more opportunities as it relates to our 

ability to track more investment to our country. And that has to 

do with the enforcement of our trade laws. 

Ms. PRITZKER. Yes. 

57 

Senator SCOTT. We certainly see that the enforcement of our 

trade laws is one of the common challenges that we face from 

things like transshipment of U.S. goods to Iran, to protection of our 

pharmaceutical companies’ intellectual property, to proper classification of imported goods. As Secretary of Commerce, if you are 

confirmed, how would you prioritize the enforcement of our trade 

laws? 

Ms. PRITZKER. Well, Senator, I think you have highlighted the 

variety of challenges around our trade laws. We have both incoming import challenges with some of our trade laws, as well as export challenges. But I think that the Commerce Department, if I 

am confirmed, should focus on both. We cannot afford to focus on 

one and not the other because we need to create a level playing 

field for American corporations globally. 

Senator SCOTT. Final question, more of a comment. I think there 

is a grand opportunity. One of the things that we have done well 

in South Carolina is the notion of synergy of our economic assets, 

realizing that having one of America’s greatest ports in Charleston 

gives us an opportunity to attract that industry, like the BMWs 

and the Boeings. The infrastructure needs plus the transportation 

needs, whether it is transit or the Port of Charleston or other ports. 

With the Panamax ships coming through the Panama Canal starting in 2015, 2016, will provide a real opportunity, a robust opportunity, for us to move forward on meeting our expectations of doubling our exports over the next few years. I would love to hear your 

comments on that economic synergy. 

Ms. PRITZKER. Well, Senator, I agree with you on the importance 

of economic synergy. And if you think about it, only 1 percent of 

American corporations actually export today, and 58 percent of 

them only export to one country. So imagine if we could work both 

in terms of supporting infrastructure creation, but also at the Commerce Department, if I was confirmed, working with those companies. What if we had 58 percent exporting to two countries, three 

countries? What if 2 percent of American companies were exporting? Think of the job creation opportunities associated with that. 

I think that is a great opportunity for the Commerce Department. And if I am confirmed, I would definitely focus on that. 

Senator SCOTT. Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator. 

Senator Blunt. 

STATEMENT OF HON. ROY BLUNT, 

U.S. SENATOR FROM MISSOURI 

Senator BLUNT. Thank you, Chairman. I would not have thought 

I had gotten this done before I had to leave, but I am glad to get 

a chance to, one, welcome you to the Committee, and, two, welcome 

what you potentially bring to the Commerce Department. I actually 

think the Acting Secretary has done an admirable job under difficult circumstances, and I think that this important Department 

needs somebody who is confirmed, and in charge, and ready to take 

hold. And I am hopeful that we are going to see that happen here 

pretty quickly. 

On transshipment, which Senator Scott mentioned, you know, actually it is an issue I have been pretty involved in because we have 

58 

had several companies that get the ruling they need, the Chinese 

or someone else. Most of these cases I am thinking of is the Chinese were not in compliance with trade laws. They get a sanction 

against them, and then somehow these same products just keep— 

start coming from somewhere else in a different box. 

The Commerce Department has, as a matter of stated policy, 

said that it will not address evasion of duties through transshipment. So we have got a bipartisan bill that was introduced in 

the last Congress, the Enforce Act. Whether it is that or whatever 

else you need to address this problem. I hope that you will look 

into this and find out why that would be the stated policy of the 

Commerce Department. Maybe they just think they have got too 

many things to keep track of, but this is a problem that many 

members of the Senate want to work with you to help solve. 

Ms. PRITZKER. Well, Senator, I am familiar with the transshipment problem, but I am not familiar with the statement from 

the Commerce Department. So if I am confirmed, that would be 

something I would look into. 

Senator BLUNT. Good. Let us go back to another thing that Mr. 

Scott mentioned, was manufacturing. You mentioned some of the 

advantages we had. Could you talk a little bit about the energy potential in the country today and how that may—might have an impact on manufacturing? 

Ms. PRITZKER. Senator, one of the most significant inputs to the 

cost of manufacturing today is energy costs. Given the falling costs 

of energy in our country, there is an enormous opportunity for 

chemical companies and other significant users of energy as they 

are manufacturing products to place their plants here in the 

United States. If I am confirmed, that would be something that I 

would work to encourage, endorse, and support, because manufacturing jobs are good jobs and jobs that we want to grow in this 

country. 

As you know, the importance of being close to the manufacturing 

floor is something that improves the opportunity for innovation. 

Senator BLUNT. Well, that is good. And as we mentioned the 

other day when we were visiting, I think that there is no more logical advocate for good cost-based energy policies than the Secretary 

of Commerce. And I am glad that you are headed in that direction 

and you are thinking as well—trade tax, the rule of law. 

Another thing I might mention as I try to not take advantage of 

my—is travel, something you know a lot about. Senator Klobuchar 

and I have been very involved on these travel issues. When I was 

still in the House, we creates something that is now called Brand 

USA, and I think it has great potential, but clearly needs somebody 

in the Department paying attention to be sure that everything they 

do is justified. 

But, you know, foreign travelers are the low-hanging fruit for our 

economy. Again, you probably know more about that than anybody 

in this room, and your sense of how important travel is to the economy, and particularly foreign travel, if you want to say anything 

about that. 

Ms. PRITZKER. Well, Senator, I appreciate your asking about 

that. You know, unfortunately the United States has lost market 

share in the long haul travel business, and that is something that 

59 

we need to regain. When I was on the President’s Jobs Council, I 

spearheaded the effort to reduce visa wait times, which were ridiculous, from some of the major countries whose citizens want to 

come and visit and travel throughout the United States. 

And we were able to point out to the State Department that 

interviewers for foreign travelers coming to the United States, 

more than pay for themselves. They bring in through visa fees 

around a half a million dollars each, so that if we could just create 

more posts and more interviewers, we would be able to increase 

travel. 

And as you are well aware, Senator, the travel industry creates 

good jobs. I think the average traveler to the United States spends 

about $6,000. So for every family of five that wants to come to 

Disneyworld that is $30,000, which is potentially the creation of a 

new job in this country. So it is a really terrific opportunity. 

As for Brand USA, I think Brand USA is a really exciting opportunity. I believe half of the money comes from the private sector, 

and half comes from the government to promote travel to the 

United States. And that is something we should be out promoting 

because we are good at this, and it is something that is a great 

source of exports as well as a terrific job creator. So I look forward 

to working on that. 

Senator BLUNT. Well, when people travel, the foreign travelers 

stay longer than domestic travelers. They spend more, and when 

they leave, they almost always like us a whole lot better than they 

did when they came. 

[Laughter.] 

Ms. PRITZKER. Yes. 

Senator BLUNT. And so this has all kinds of positive reverberations. And again, in this job, you understand all of the impact of 

this throughout the economy, and look forward to working with you 

on that, assuming you are confirmed. 

Ms. PRITZKER. Thank you, Senator. 

Senator BLUNT. Thank you, Chairman. 

The CHAIRMAN. Thank you, Senator Blunt. 

And now, Senator Klobuchar. 

STATEMENT OF HON. AMY KLOBUCHAR, 

U.S. SENATOR FROM MINNESOTA 

Senator KLOBUCHAR. Well, thank you very much, Mr. Chairman. 

I note they are even happier if they visit Branson, Missouri, correct? 

All right. Well, I want to thank you so much, Ms. Pritzker. I enjoyed our meeting and working with you in the past. And Senator 

Blunt and I have worked together extensively on tourism, and I appreciate your knowledge. I thought you answered that well, so I am 

not going to go over that again, but I appreciate that. I think you 

know this is a huge opportunity for our country to gain jobs, tens 

of thousands of jobs for every point that we gain back of the international tourism market. And we are finally headed in the right direction. 

When you and I talked, I spoke about the ability of the Commerce Secretary, particularly someone with your background, to 

really being an advocate for business as a whole, not just the 

60 

things under your Agency, but that I see this need that we have 

right now for someone to look at, I had suggested to you, our top 

15, 20 exporting industries, and figure out while they all have some 

things in common, they also each have individual things that can 

help: tourism, the visa wait times, a medical device. There are FDA 

wait times that we are working on to solve. 

You literally can go through the list and find unique things, and 

I wondered if you could comment on that, the bigger role the Commerce Secretary could play and that you could envision yourself 

playing. 

Ms. PRITZKER. Well, Senator, if I am confirmed, the role of being 

an advocate for American business is one that I will take absolutely seriously. I think it is one of the main reasons that I am 

really interested in this job, and I think the President felt that I 

could bring all the experience that I have had in a variety of businesses, and my ability to relate to businesses. As you said, there 

are many, many industries, and the Department has the ability to 

work on helping our companies to export or gain technical knowledge so that they can continue to innovate, or to get access to a 

patent more quickly so that their time to market is reduced. Those 

are some of the areas that I look forward to having the opportunity 

to focus on. 

Senator KLOBUCHAR. Thank you very much. You mentioned exports, and I think that the—part of this is, of course, the Foreign 

Commercial Service, and I just hope you will be committed to continuing that. We would love to see it expanded every time we get 

some new business for one of our small-and medium-sized businesses that cannot afford to have their own trade expert on Morocco, but can do a lot of business there. We actually have a trade 

surplus for Morocco. 

I think we have a good thing going, and it is really one of the 

best things we can invest in. So I hope you will continue to expand 

that to help those small and medium-sized businesses. 

Ms. PRITZKER. Senator, I completely agree with you. I think the 

Foreign Commercial Service is one of the great assets of the Commerce Department, among many great assets, and one that if I am 

confirmed, I would look forward to working with and encouraging 

their growth and their continued outreach with not just small-and 

medium-sized businesses, but with all American businesses. 

Senator KLOBUCHAR. Some of my colleagues asked you about 

manufacturing, and I just had a hearing on the Joint Economic 

Committee on women in manufacturing, and we had three women 

in business as witnesses. And as the recent book Lean In has 

pointed out, there is a lot of room for women to grow in business. 

Across manufacturing, women only hold 17 percent of the board 

seats, are only 12 percent of the executive officers, and are just 6 

percent of CEOs. 

And then you go on the front line workers, the share of women 

workers in the manufacturing industry has been declining actually, 

even though we are seeing an upsurge in hiring right now since 

1990 and is now 27 percent at its lowest level since 1971. 

And so these are really two things I am getting at. One is, as 

you know, we have job openings right now in manufacturing in 

states like mine that have a 5.4 percent unemployment rate. And 

61 

the manufacturers are trying to get women to go into this with the 

argument, this is no longer your grandpa’s manufacturing floor 

anymore. So we have that side of it. 

But then we have just overall in business. You are someone that 

has been successful in business, but how we get more women into 

the boardroom and running companies. 

Ms. PRITZKER. Well, I think there are two things I would like to 

comment on, Senator. One is I have spent significant time focused 

on the skills issue and the skills mismatch in our country, and so 

making sure that Americans are well trained for the jobs that are 

open is a personal priority. In terms of making sure that we have 

more women in manufacturing, it starts with encouraging more 

women to get a STEM education, and that is something I have 

been involved with in my role on the Board of Stanford and on the 

Board of Harvard. I have been very much a proponent of that. 

And you see much greater mentorship occurring, which is a significant part of how I think that we can end up with more women 

in leadership in manufacturing. 

Senator KLOBUCHAR. Very good. 

Ms. PRITZKER. So I look forward to working with you on that. 

Senator KLOBUCHAR. One last very quick question. The Commerce Department and the Economic Statistics Administration, as 

you know, provide critical up-to-date information about the social 

and economic needs of communities. And that all sounds like a 

bunch of gobbledygook, but most people are not aware that business leaders heavily rely on this for demographic and socioeconomic 

data so they can do business. It is a tool for market evaluation. 

And I just want to get your commitment because I know these kind 

of surveys can be under attack at times, but your understanding 

that they go to very good use to help the American economy and 

people in business. 

Ms. PRITZKER. Well, Senator, I am well aware of the importance 

of the data that is collected because some of the businesses that I 

founded, particularly our senior living business, totally relies upon 

the kind of demographic and income data that is collected in those 

surveys. For example, where we locate our properties because you 

do not want to build a property and have it not be successful. It 

depends upon that kind of critical data. 

So I have an enormous appreciation for that work, and if I am 

confirmed, I will continue to make sure that data collection is effective. 

Senator KLOBUCHAR. Thank you. And thank you for the commitment earlier with Senator Warner to continue the strong Patent 

Office. We have one company, 3M, that literally has so many patents, they have a patent for every employee. And so it is very important for our State, and we want to continue that in a strong 

way, as well as look at some of the patent troll issues with litigation. So, thank you. 

Ms. PRITZKER. Thank you. 

The CHAIRMAN. Thank you, Senator Klobuchar. 

Senator Cowan, to be followed by Senator Cantwell. 

62 

STATEMENT OF HON. WILLIAM COWAN, 

U.S. SENATOR FROM MASSACHUSETTS 

Senator COWAN. Thank you, Mr. Chairman, Ranking Member 

Thune, Secretary-designate Pritzker. Good to see you again. Welcome to the Committee. Congratulations on your nomination, and 

thank you and your family for your willingness to serve. Obviously 

I and several in the Committee as a whole, I think, are confident 

that the breadth and depth of your experience in, both the private 

and the public sector, will be a tremendous added bonus to the 

Commerce Department at this important time in our Nation’s history. 

You will be taking over the Department at a critical time for our 

economy, and I hope that as Secretary you will use all your experiences to create jobs and expand economic opportunity in the Nation. 

You know, from our conversation the other day and your impressive resume, I know that you are well prepared to lead the Department, which is encouraging. And it is important to us in Massachusetts because we have some challenges right now, one of which you 

and I spent an extensive amount talking about. And it will surprise 

no one on this committee that I now wish to engage you on the 

issue of the fishing industry. 

Ms. PRITZKER. Yes. 

[Laughter.] 

Senator COWAN. As you know, the fishing industry in Massachusetts is 300 years strong, and it is not just the boats and the men 

and women who serve on those, but the seaside businesses that are 

important to us, but are also struggling because of changes in the 

fishing economy. 

Right now, fishermen in the northeast are living under a 77 percent cut in the number of fish they can catch, and the situation imperils the very existence of the industry. You and discussed this 

last week. 

And as I mentioned to you, there are some challenges, some of 

which are manmade, and that the fishing industry in my neck of 

the woods believe that they have not had a good partner in the 

Commerce Department, and NOAA in particular, in recent years. 

And I talked to you about the need for Commerce and NOAA to 

have a much more comprehensive and thoughtful and inclusive 

plan with our fishing industry to help save this industry and bridge 

a gap toward its—a brighter future. 

And so I want to ask at this time if you are willing to make a 

commitment to work with those of us who represent the great and 

proud fishing industry in the northeast to plan for a brighter future and to address the realities that we are facing right now, and 

help us find a way forward collaboratively, because we believe that 

has been missing. 

Ms. PRITZKER. Senator, I have great respect for the fishermen all 

over our country, and partnerships with those in the northeast. 

Fishermen are entrepreneurs, and I have affinity for entrepreneurship. There are also many, many fishermen in family businesses. 

And heaven knows I come out of a family business organization. So 

I appreciate the challenges that the fishermen are facing in the 

northeast. 

63 

If I am confirmed as Secretary of Commerce, NOAA needs to improve its relationship with fishermen and with the citizens in the 

northeast so that there is more understanding, better communication, greater transparency, and more trust so that if decisions are 

being made, there is an understanding really of what exactly is the 

data. 

And so, Senator, I look forward to working with you on that. We 

discussed that when we were together, and it is something that is 

very important to me. 

Senator COWAN. Thank you for that. And I, of course, would invite you to come up to Gloucester, New Bedford, any of our ports 

at any time to meet with our fishing community and the municipal 

leaders who are so supportive of that industry. And I am happy to 

host you in that regard. 

Ms. PRITZKER. Well, thank you, Senator, for the offer. I appreciate it. 

Senator COWAN. If I could just go back to a topic that has been 

raised by the chairman and a few issues, the issue of cybersecurity. 

As a business leader yourself, and you mentioned the cyber hits 

that your current business has received in the billions. You know 

the importance of this issue. 

One of the issues as we grapple with this in Congress is what 

is the best way to move forward constructively, particularly around 

the issue of information sharing between the private and the public 

sector? And it seems to be a particular sticking point. And I am 

wondering what is your viewpoint on that particular issue, both as 

a business owner and as someone who is going to be charged with 

leading the Commerce Department? 

Ms. PRITZKER. Well, Senator, I think it is very important, first, 

to begin the dialogue with the business community and explain to 

them really what is at stake. Each business understands what is 

at stake for them individually, but I think we need to discuss what 

is at stake in terms of our critical infrastructure, things that businesses maybe at times take for granted. We should talk about how 

we need to come together, and it is important that they have a seat 

at the table. We should invite the private sector to be involved in 

the dialogues around creating a framework. And they need to take 

advantage of that, and that would be something that I will promote 

and advocate for. 

Senator COWAN. Great. And I would encourage you, again, during your visit to Massachusetts, you might want to visit with some 

of our elite higher ed institutions, including your alma mater and 

the folks over at MIT and at Northeastern, where you are going to 

find a wealth of experts in the area of cybersecurity. I am sure they 

would be willing to work with you and the Department to help us 

find a way forward. 

And with that, I am going to yield the remainder of my time, Mr. 

Chairman, but thank Ms. Pritzker for her willingness to serve. 

The CHAIRMAN. Senator Cowan, some of us are feeling a little 

hurt because you have declined to invite any of your colleagues to 

go up and look at your fishing. 

[Laughter.] 

The CHAIRMAN. I mean, you know, yesterday and today you were 

very clear. But we are just sitting here ready to be helpful. 

64 

Senator COWAN. I am—Mr. Chairman, I am penning handwritten 

notes even as I speak to each of you inviting you to the great Commonwealth of Massachusetts. 

[Laughter.] 

The CHAIRMAN. Senator Cantwell. 

STATEMENT OF HON. MARIA CANTWELL, 

U.S. SENATOR FROM WASHINGTON 

Senator CANTWELL. I am ready to go. I am not sure they want 

us up there, but I am ready to go. 

[Laughter.] 

Senator CANTWELL. Ms. Pritzker, welcome. Welcome to your family. Having been in business myself, I can tell you there are many 

pluses that come to bringing private sector experience to the public 

sector realm, but also you have to face the challenges and be accountable for some of the things that happened in the private sector, and people bring up all sorts of things. 

So my first question is, you know, our state AFL–CIO and many 

others have a boycott of the Alaska National Hyatt. And one of the 

issues is that they are concerned about minimum wage jobs or the 

subcontracting of minimum wage jobs as a way to just keep the 

workforce at a lower rate. And some concerns about safety and 

workload issues. 

So, one of the things you are going to face as Secretary is how 

to maintain and get high wage jobs into our economy. So, do you 

want to comment on the former, or how we do the latter, and look 

forward to—— 

Ms. PRITZKER. Well, Senator, I have been in business for 27 

years, and I know the cornerstone of a successful business is that 

you have to have a good relationship and a good balance between 

management and labor. There is no success in business without a 

good relationship between management and labor, and I support 

the right of workers to organize if that is what they want to do. 

And I think that it is extremely important that, as I said, management and labor work closely together on issues of good jobs and 

creating sustainable jobs. 

Senator CANTWELL. So this is a—the notion of subcontracting out 

to keep minimum wage jobs as a way to maintain a workforce is 

not something you support. 

Ms. PRITZKER. No, Senator. 

Senator CANTWELL. OK. And as far as high standards for safety 

and workload issues? 

Ms. PRITZKER. Senator, I support high standards for safety, absolutely. The workforce is part of one’s business family and you have 

to have a business that operates in a way that works for everyone—management, labor, all the stakeholders. And to me, safety 

and security of one’s labor force and one’s management is absolutely the number one priority. 

Senator CANTWELL. Well, one issue that I would love to see you 

take a leadership role on within the Department, and one that you 

and I had a chance to talk about, and one in which I think you 

could bring a huge private sector focus to that would be very, very 

helpful is this issue that the chairman brought up in his opening 

statement about a weather-ready Nation. 

65 

To think that literally NOAA was getting Weather Service information from Europe because they were further ahead—I think it 

was 4 days ahead of predicting what Sandy was going to be, than 

NOAA was capable of. That is because they have instituted new 

technology and used an ensemble model, which basically analyzes 

the storm and information data in a new way, and then presents 

it. 

What do you think you can do to help bring us to a better weather-ready Nation and institute new technology? I know that we just 

passed a Sandy bill, and there will be more supercomputing time, 

but this is an issue where we have to keep competitive. And the 

last couple of days just showed us. I mean, the difference between 

knowing 15 minutes ahead of time and an hour ahead of time is 

a huge difference. 

So what do you think you can do to help us modernize that? 

Ms. PRITZKER. Senator, we all have been reminded over the last 

several months of the importance of having a top quality and best 

in class Weather Service. Between Hurricane Sandy, between the 

hurricanes in Oklahoma, the flooding in the Midwest, we have all 

seen how our weather can threaten lives as well as property. If I 

am confirmed as Secretary of Commerce, making sure that our 

Weather Service is best in class is something that I would make 

a high priority. 

Senator CANTWELL. And so do you think that it could include 

working with the Department of Defense? Part of the issue is that 

they have great satellite technology information, but it is often secure. So what I guess I am looking for is your leadership ability 

coming in and bringing agencies together as well, and figuring out 

how to get the best information into public officials’ hands so that 

we can do a better job of helping people prepare, because the technology is there to know the power of these storms. 

Ms. PRITZKER. Well, Senator, one of the things I prided myself 

on in my business career is working in partnership with others. 

And so whether it is the weather or many other aspects of what 

the Commerce Department is engaged in, if I am confirmed, good 

partnerships with other agencies would be something that I would 

take very seriously and work hard to achieve, particularly on the 

area of the Weather Service. 

Senator CANTWELL. Thank you. And like Senator Cowan, I can 

guarantee you that fish are important. 

Ms. PRITZKER. Yes. 

Senator CANTWELL. And the late Ron Brown once said that he 

was Secretary of Commerce, but if a member of Congress was calling him, he guaranteed it was about fish. And I have the same concern and want to know what your thoughts are on the Bristol Bay 

pebble mine, which is a mine that is in Alaska that has—basically 

it is at the head of one of the largest sockeye fisheries and the largest Chinook fisheries, which is basically the head waters for Puget 

Sound salmon. So we want to make sure that you are going to be 

very adamant about good science leading the way to protecting 

against undue development that might impact those fisheries. 

Ms. PRITZKER. Senator, I know the importance of salmon—you 

and I talked about that earlier—to your state and, frankly, to our 

66 

country, and to my dinner plate at times. And finding a balance to 

make sure that we protect the salmon is very important to me. 

I do not know the specifics of the mine situation, but if I am confirmed, that would be something I would look into. 

Senator CANTWELL. Well, I guess what I am interested in is 

whether you will have good science help engaged in the process. 

Ms. PRITZKER. Absolutely, Senator. The importance of science 

and technology used throughout the Agency is important, particularly in that area. 

Senator CANTWELL. OK. Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Cantwell. 

Senator Begich, to be followed by Senator McCaskill, to be followed by Senator Cruz. 

STATEMENT OF HON. MARK BEGICH, 

U.S. SENATOR FROM ALASKA 

Senator BEGICH. Thank you very much, Ms. Pritzker, for being 

here. Thank you for taking the time to meet with me a few days 

ago. Again, appreciate your willingness to be subjected to all these 

process to be a public servant, so I know that takes some time. 

Let me—we talked about several issues, and I actually want to 

follow up on fish because, as you know, Alaska produces the wild 

cod American fish product, about 60 percent, 50-something percent 

of the fish. So we have a huge interest obviously economically and 

otherwise. And I agree with my colleagues that the calls you will 

get will be about fish. You will think they are about trade, and 

about agreements, and tourism, and other things. It is going to be 

about fish. And I want to make that clear. 

As the Chair of the Committee that deals with it here, you know, 

we are going to be going through the Magnuson-Stevens rewrite, 

so it is obviously something we will be engaged with you on. 

But let me ask you, you know, we are going to lose, or you are 

going to lose, some of your appointed—the National Marine Fisheries Services, Eric Schwab, who is now stepping down. And there 

has been a lot of issues to make sure we have good, strong leadership there, obviously also in NOAA. 

I guess I want a commitment that you will make this a priority 

as quickly as possible because of the work that we have to do on 

the Magnuson-Stevens reauthorization bill and the fisheries issues 

that are in front of us right now. 

Ms. PRITZKER. Well, Senator, one thing I know from my 27 years 

in business is it is important to have good expertise around me. 

And so, if I am confirmed, I will want to make sure that the Agency has the best in class folks in those positions, because I know 

how important the fishing industry is to you and to many of your 

colleagues here. I will commit to make sure that we have the right 

people in place to work with you on this. 

Senator BEGICH. And the key to me is as quickly as possible because—— 

Ms. PRITZKER. Yes, absolutely. 

Senator BEGICH.—you are going to have these empty positions. 

And it is, honestly, getting us nervous as we move forward with the 

reauthorization. 

67 

Let me also—we talked a little about satellites, one that you are 

learning quite a bit about. Your role would be to manage satellites. 

And there is a group of independent review from the aerospace executives that call the program somewhat dysfunctional. That is actually the phrase they used. 

I just make sure that you are committed to looking at this program. It is a multi-billion dollar program, as you know. Timing is 

critical. It makes a difference on our weather forecasts and when 

we do them so we do not have to depend on other people. 

Will you commit to make sure that you will spend the appropriate time to dive into how to make the system better than it is 

today? Lots of it is around allocations or getting the resources for 

them, and helping us understand what we should be doing to help 

make that better. 

Ms. PRITZKER. Senator, I thoroughly appreciate the critical mission of our satellites, and we have seen how important they are to 

protecting life as well as property over just the last week, let alone 

with the horrible tragedy in Oklahoma, let alone with Hurricane 

Sandy, and with the floods in the Midwest. 

Making sure that we have best in class technology, that we can 

understand what is going on with the weather, and getting the information out as quickly as possible and as accurately as possible 

is a very important priority. If I am confirmed as Secretary of Commerce, it is something that we will make sure to focus on. 

Senator BEGICH. One area also on satellites, obviously the weather. Since 2010, the National Weather Service has lost about 300 positions, about 6 percent. Actually in the President’s Fiscal Year 

2014 budget, he eliminates another 103 positions in the forecast offices, about now an 80 percent reduction. There is a hiring freeze 

in place. 

I can tell you in Alaska, this is now creating some problems. We 

are in flood season. We have severe issues occurring already. We 

are about to hit fire season in many parts of the country. We have 

in Alaska missing entire shifts worth of people. Now they are 

bringing people in on overtime. 

You know running a business that when you start doing overtime, there are a lot of costs—fatigue and other costs—that are 

hard to measure until something bad happens. And then you realize they were working too many hours or the fatigue occurred. 

Can I get a commitment from you that you will reexamine the 

decision of the hiring freeze and how they are handling furloughs 

in the Weather Service? To me, the way they—I mean, you know, 

I have run businesses. I ran a city. This is not the best way to do 

it. It is going to have a negative impact on the outcome, the product that we need for situations like in Oklahoma or Sandy and otherwise. 

Ms. PRITZKER. Well, Senator, I share your concern to make sure 

that we have the appropriate staffing, and I am aware that NOAA 

is working to mitigate the impacts of the staffing challenges and 

budget issues on its critical mission. If I am confirmed as Secretary 

of Commerce, making sure that our Weather Service is appropriately set up and operational is a high priority. 

Senator BEGICH. Great. Let me go to another issue, and it is kind 

of a selection here. This is one, and we talked about this, on the 

68 

Arctic oil and gas issues and the EIS, the environmental impact 

statement, that NOAA has their supplemental draft out right now. 

It is—it was issued a few weeks ago. The definition, when you look 

at it, it defines it almost as if the drilling program is to limit each 

company to only one drill well at a time in the theater, meaning 

two areas of theater, one rig, one well total. 

That is not going to work based on the 600 leases that we have 

up there. Basically by that action, you could economically determine the outcome, which is nothing will happen. 

So will you—and I know we talked about this. Again, I am not 

asking for your position because you need to be confirmed first. But 

will give some assurances, at least here, that you will work to ensure that the people who have leases up there can fully utilize 

those leases under the conditions we set obviously and the environmental conditions and everything else, but not be—and this is my 

phrase. It is not, I think, what NOAA was doing, but back dooring 

it by collapsing their ability to move forward by saying, well, sorry, 

you can only do one, that is it. Well, we need them to look at that 

whole air shed at one time, not just single applications that are 

coming in. 

Would you commit to look at the broader picture and making 

sure that we do not something that negatively impacts their ability 

to move forward on oil and gas exploration of the Arctic? 

Ms. PRITZKER. Senator, I know how important oil and gas exploration is to your state as well as to the country, and it is something 

I would need to look into. I just am not yet familiar with it. But 

I will look into it, and I look forward to working with you on that. 

Senator BEGICH. Fantastic. I will leave it at that, and I want to 

just say that when you start to talk about Pebble Mine, a mine in 

Alaska, we would encourage you to talk to us also. I appreciate my 

colleagues’ interest in this issue. There is only one state that has 

the strongest interest. It is us, so I will leave—— 

Ms. PRITZKER. Senator, I will try to speak—make sure that all 

stakeholders have a voice. 

Senator BEGICH. Very good. And as the chairman always knows, 

we invite you to Alaska. 

[Laughter.] 

Ms. PRITZKER. Appreciate that. 

The CHAIRMAN. Thank you, Senator Begich. 

Senator McCaskill. 

STATEMENT OF HON. CLAIRE MCCASKILL, 

U.S. SENATOR FROM MISSOURI 

Senator MCCASKILL. Thank you, Ms. Pritzker, for being here 

today. I am aware that for a lot of good reasons, a lot of Americans 

have a very cynical view of the Federal workforce and us. They 

look at people who work for the Federal Government at large and 

make assumptions that many times are unfair that there are Federal employees that are bureaucratic bozos, and not working very 

hard, and making way too much money, and soaking off the taxpayers. 

And I have got to tell you, I find it very refreshing to find someone who is stepping up like you are in this position. I think it is 

pretty obvious that you are not coming to this job for a paycheck. 

69 

I think it is pretty obvious you are not coming to relax and soak 

off the taxpayers. You are not coming because you see this as an 

easy challenge. I think you are really coming because you have a 

desire to serve this country, and your business background is one 

that I think can serve this country very well. 

The President has proposed to do away with the Commerce Department and combine the Commerce Department, the Small Business Administration, USTR, and other agencies that have various 

intersections with business in this country. Proposing to do away 

with part of the Federal Government is difficult. And I would ask 

you, do you have some ideas on how your service in this job could 

help move that goal forward in terms of identifying some strong bipartisan arguments that can made? And one of the problems is we 

have lots of committees that deal with these various agencies that 

are not excited about the idea of us trying to avoid some of the duplication and overlap. 

I am wondering if you have given that any thought and if you 

see, based on your business background, when sometimes streamlining, and selling, and merging are essential, because you have the 

discipline of a bottom line. Unfortunately we do not have a bottom 

line discipline in Washington. And I wonder if you have any ideas 

about that. 

Ms. PRITZKER. Senator, I appreciate your question. I support the 

President’s request for reorganization authority. I know his objective is to try to make the government more streamlined, more effective, and more efficient. I am not exactly sure how I personally, if 

I am confirmed as Secretary of Commerce, could assist in that effort. If Congress were to give the President that authority, I would 

work to support him and give him my best advice, which is what 

he has asked me to do in this job. 

In the meantime, if I am confirmed, I would look to figure out 

how we can streamline and be more effective and efficient within 

the Department’s current setup. 

Senator MCCASKILL. Well, I would look forward to working with 

you on an ongoing basis, particularly when you find issues of duplication and overlap. My colleague, Senator Coburn, has worked 

hard on this duplication issue. And it is real. I mean, you know, 

some people on my side of the aisle do not want to confront it, but 

there is duplication. I mean, just look at the broadband issue. 

Ms. PRITZKER. Right. 

Senator MCCASKILL. We have it in agriculture, we have it in 

Commerce, two programs with ostensibly the same goals, but two 

different sets of personnel, and rules, and procedures dealing with 

the pots of money in both places. So I would love to work with you 

as you identify with an eye towards a business mindset how we 

could whack away a little bit. 

Ms. PRITZKER. Senator, I look forward to working with you on 

that. 

Senator MCCASKILL. The other thing I just want to mention to 

you is that I have discovered there was an idea a while ago about 

creating a Federal workforce called Senior Executive Service. And 

Senior Executive Service was created ostensibly to develop great 

talent in the Federal Government to compete with the private sector. And the idea is these would be highly qualified employees with 

70 

a broad background and knowledge, and that they would move 

around the government basically with a lot of excellence, helping 

us do a better job performing the services that we must as the government. 

I do not think that has actually come to pass. I think that most 

of the Senior Executive Service in the Federal Government is not 

moving much. I think many of them are burrowed in in agencies. 

And it has come to my attention that they have continued to get 

very, very large bonuses, even in this economic climate. 

I have put in a piece of legislation to stop the bonuses to Senior 

Executive Services employees. By the way, the average bonus here 

is somewhere—it is five figures. They are healthy bonuses for the 

government. I think the average bonus was around $16,000, and 

the salaries for these people range between $119,000 and $180,000 

a year. So these are la cre`me de la cre`me of—even though they 

only make up, I think, 1 percent of the work force, I think they 

were getting certainly more than that in terms of bonuses they 

were receiving. 

And what I really found troubling about it is that in some agencies, everyone in SES got the bonus. There was no performance 

evaluation going on. It was a rite of passage. It was pro forma. You 

got your bonus. 

I would ask you to take a look at SES in the Commerce Department, and particularly the legislation I have introduced would prohibit those bonuses from being given in the environment of sequestration, because most—we have got line employees that are having 

to take days off without pay, and then we have this little upper 

crust of Federal employees that are still getting five figure bonuses. 

And that does not, I think, make sense from a business perspective. 

So I would love you to take a look at the SESs in the Commerce 

Department and look at the bonus proposals and procedures, and 

get back to my office as to what you think—I think GSA has reformed it on their own. I think they have quit doing it when we 

discovered this. And I would love to see the Commerce Department 

follow suit. 

Ms. PRITZKER. Well, thank you, Senator. I am not familiar with 

SES, but I look forward to learning about it. And certainly I know 

from my private sector days that bonuses should be earned if one 

has performed and not otherwise. And certainly at a time of a tight 

government budget, we need to watch every penny and make sure 

that it is appropriately spent. So I will look into it and learn more. 

Senator MCCASKILL. Welcome to the pit. 

Ms. PRITZKER. Thank you. 

Senator MCCASKILL. Thank you, Ms. Pritzker. 

The CHAIRMAN. Thank you, Senator McCaskill. 

Senator Cruz. 

STATEMENT OF HON. TED CRUZ, 

U.S. SENATOR FROM TEXAS 

Senator CRUZ. Thank you, Mr. Chairman, and thank you, Ms. 

Pritzker, for joining us today, for answering these questions. Thank 

you for coming by my office this week and visiting. I enjoyed the 

chance to visit. 

Ms. PRITZKER. Yes. Me, too. Thank you. 

71 

Senator CRUZ. Let me say at the outset that in a bipartisan note, 

I want to echo the comments that Senator McCaskill just raised 

about looking at the SES bonuses. I think that is an area that additional close scrutiny is certainly warranted. 

I would like to begin by talking about a topic you and I talked 

about in my office, which was free trade. And in the course of that 

conversation, as I understood what you said, you said you were an 

enthusiastic, unapologetic advocate of free trade. Is that a fair 

characterization, and, if so, would you elaborate on your views, 

please? 

Ms. PRITZKER. Senator, I believe that trade agreements can be 

advantageous for American business. And so if I am confirmed, I 

would look forward to working with our U.S. Trade Representative 

to expand our trade agreements so that our businesses can grow 

and create good jobs for people in this country. 

And so I am hopeful that the European trade negotiations and 

the TPP can be good for American business and good for American 

job creation. 

Senator CRUZ. Well, thank you, Ms. Pritzker. As I shared with 

you, I have been disappointed that in my judgment the current Administration has been less than vigorous in pursuing free trade. 

And if you are confirmed, I hope that you will be an effective voice 

for making the Administration far more vigorous going forward. 

A second area that we talked about that I would like to discuss 

is the area of regulation. And as you know, my top priority in office 

is restoring economic growth in this country. 

Ms. PRITZKER. Yes. 

Senator CRUZ. I think that is the most critical element to ensuring our long-term strength and also expanding the opportunity in 

this country for the least well off among us to climb the economic 

ladder and to achieve the American Dream. And we talked quite 

a bit about the impact of overly burdensome regulation and how 

that can harm businesses, and especially small businesses that are 

just starting and struggling and that, as you know, generate twothirds of all new jobs. 

Yesterday in confirmation hearings with the nominee in this 

room, the nominee to be Secretary of Transportation, I had a similar conversation with him and asked him at the time if he would 

commit in his first 100 days to working to identifying at least three 

regulations that are overly burdensome, and to working with me 

and with this committee to either modify or repeal those. And indeed his response, which I will confess, I liked very much, is that 

he suggested that three might not be enough. And then he suggested instead 10, which I accepted that as a friendly amendment. 

And so I would ask you the same question, and, see if you would 

make the same commitment. 

Ms. PRITZKER. Senator, you and I had this conversation and I 

think agree, you know, as does the President, that it is extremely 

important that we look at our regulatory environment and see how 

we can streamline regulation so that it is effective, but also so that 

businesses can grow, can be innovative, and can create jobs and 

economic growth, as you said. 

So I would enthusiastically look at the Commerce Department. 

I am not sure the regulations in the Commerce Department are as 

72 

vast as the regulations of the Transportation Department. But I 

will enthusiastically work with the organization to find opportunities to streamline regulation. 

Senator CRUZ. Well, terrific. I appreciate that. You also suggested in our conversation the concept of zero-based regulation, 

that rather than piling one regulation on another, on another, and 

having them continue to grow vast and unwieldy, that we ought to 

start from a zero base and ask what regulation is needed and sensible. 

I very much agree with that notion, and so I would welcome if 

you would perhaps elaborate on the concept as you shared when we 

visited. 

Ms. PRITZKER. Well, in business, one often is required to start 

again, or take a fresh look at the situation using the concept of 

zero-base budgeting. And I think that is what the President was 

getting at with the executive order. He was trying to say, look, let 

us look at the cost benefit of what we have got, but let us streamline our regulatory structure. And a zero-based idea is basically to 

start from scratch and say, what are we trying to accomplish here 

with regulations and how do we do that most efficiently and effectively. 

Now, I am not an expert at precisely how one accomplishes that 

here, but I look forward to learning and trying to help with that 

effort. 

Senator CRUZ. Well, very good. I look forward to working with 

you on that, and I hope that if you are confirmed that you can provide a voice in this Administration for pulling back the regulations 

that I think are so damaging to economic growth and in killing 

jobs, and really impacting in a negative way a great many Americans who are struggling. 

The last topic that I want to discuss very briefly is the topic of 

spectrum. And as you know, right now, the vast majority of usable 

spectrum is either owned or shared by the government, 60 to 70 

percent. And last year’s Spectrum Act statutorily requires the 

NTIA to ‘‘promote the best possible and most efficient use of electromagnetic spectrum resources across the Federal Government.’’ 

In my view, Federal Government ownership of assets, be they 

spectrum, be they land, or anything else, should be the minimum 

necessary to protect our critical national interests. And on spectrum, in particular, I would like to see as much of it as possible 

placed in the private sector hands to allow entrepreneurs and businesses to put it to productive use to generate economic growth and 

generate jobs. 

Do you agree with that approach? And would you agree to work 

together to try to assess just how much spectrum the Federal Government needs and now much of that can be sold at significant 

profit to the government, to the private sector to be put to productive use for private Americans? 

Ms. PRITZKER. Well, Senator, I support the President’s goal of 

having the agencies look for 500 megahertz of spectrum. I think 

the NTIA to date has found 100 megahertz of spectrum to make 

available for commercial use. 

I support the effort of finding as much spectrum as is possible 

to be used for commercial use, balancing, of course, our national seVerDate Nov 24 2008 07:34 Apr 10, 2015 Jkt 075679 PO 00000 Frm 00076 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\94056.TXT JACKIE
73 

curity and other needs. And if I am confirmed, that is something 

that I would work on closely with the head of NTIA to really make 

sure that we find that spectrum. 

Senator CRUZ. Very good. Thank you, and I look forward to our 

working together on all these issues. 

Ms. PRITZKER. Senator, I look forward to it if I am confirmed. 

Senator CRUZ. Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator, very, very much. 

Ms. Pritzker, I have one question. Well, I actually have two questions to ask. About 8 months to a year ago, all over Washington, 

by which I mean at the White House, and here, and a couple of 

other places, we were celebrating something called FirstNet. And, 

I mean, they were virtual cheering sessions at the White House. 

Everybody was so pleased. 

And they loved the idea because it involved a voluntary auction. 

It would not cost the taxpayers a dime. We finally got the House 

to agree to push them up to $7 billion. It really is about $11 billion 

that it would cost. But none of it comes from the—to lay out the 

whole network nationally, but the whole—none of it comes from the 

taxpayers. In other words, it is kind of a perfect storm. 

One problem. And of course the reason for this, as you know, 

that firefighters—I mean, it goes back to the Kuwait—we landed 

at Kuwait, and the Army and the Navy, nobody could communicate 

with each other. And then we still had the same situation. I serve 

on the Intelligence Committee, and I just live in that situation of 

stovepipes where people will not share. 

And the first thing we passed after 9/11 in this country, the first 

law was embarrassing. We passed a law which allowed the FBI 

and the CIA to talk to each other, not that they would do anything, 

but they had to be allowed to talk to each other. I mean, this is— 

the world has changed: rapid response real time, all the rest of it. 

So we came up with the idea of FirstNet as a public safety spectrum—firefighters, police, law enforcement, FBI, EMT. You know, 

if you are a firefighter, you can see with the technology that would 

be held in hand-held devices by first responders all over the country, the same hand-held device. Not yet completely done, but they 

could see, you know, how many bodies were in the burning building. There appear to be serious injuries so that they could actually 

then send photographs onto the hospital where the person was 

being taken so they would be prepared. I mean, it’s such a common 

sense idea. It is so desperately needed. People so want it. 

I will tell you, this room, when we had the hearing on it, was 

nothing but first responders. I mean, they just totally want it. And 

I do, too, and we are not getting it. And again, no tax money is required, but obviously it has some problems. And we created this 

FirstNet and a guy named Sam Ginn—do you know him? He is 

very, very good. He runs it. Fifteen people on the board. But we 

just have not been able to see enough movement. 

Now, maybe that is in the nature of things, that something that 

vast is just—you know, the engineers and the architectures of the 

whole approach takes time. I do not know, but I do not want to accept that. I want to hear feelings of improvement, of moving forward. I mean, at best, to spread this out across the Nation I would 

think would take maybe a decade, I mean, all the towers. I mean, 

74 

you start thinking about it, it is an enormous project, but it is what 

our country needs because, as I believe, the climate is changing. 

And, you know, one of the problems in Oklahoma, I think they 

passed a rule—I am not sure if I am right in this—in their State 

legislature that you did not have to—you could not or did not have 

to build a basement. Well, that is not right. And FirstNet would 

not necessarily change that. 

But you understand the concept—— 

Ms. PRITZKER. Yes. 

The CHAIRMAN.—the urgency of public safety with so much tragedy and disruption, as well as, you know, the possibility or probability of attacks by Americans on our own country. They can do 

with computers what the Chinese can do with computers, and, you 

know, not everybody is affable that way. 

So all I want to know is that if you are confirmed, that you will 

set mind, body, and soul to FirstNet, to working with them, to understanding the problem, to understanding why more is not happening. And there may be a good reason for that. Maybe I am just 

impatient because I am not an engineer, structural or otherwise. 

So, but if I knew that if you are confirmed that the Secretary of 

Commerce were watching this very, very closely, I would feel quite 

good. Will you do that? 

Ms. PRITZKER. Well, Senator, I share your commitment to 

FirstNet. It is a great practical idea that will benefit the first responders as well as people who are in distress. And so if I am confirmed as Secretary of Commerce, I will make sure that we work 

with the Board of FirstNet, which is in charge of the implementation, so that they understand the urgency and the need to implement this as effectively and efficiently and as quickly as possible. 

The CHAIRMAN. Good. Thank you very much. 

Senator Thune. 

Senator THUNE. All right, Mr. Chairman. I think we are—it is 

just you and me. We are about ready to wrap this up, and the unpleasantness is about over for Ms. Pritzker. 

But I wanted to ask one other question, and for a minute here 

I am going to channel Senator Grassley. But some have criticized 

the fact that you are a beneficiary of some offshore tax avoidance 

schemes, and that it is hypocritical for the President to nominate 

Cabinet members who benefited from offshore tax havens when he 

has criticized that practice for others. How do you respond to that 

criticism? 

Ms. PRITZKER. Senator, I am the beneficiary of offshore family 

trusts that were set up when I was a little girl. I did not create 

them. I do not direct them. I do not control them. I have asked the 

trustee to remove themselves and to appoint a U.S. trustee. But I 

have complied with all of the disclosure obligations that have been 

required of me in this process. 

Senator THUNE. Let me ask you one other quick question if I 

might. One of the areas under your purview is going to be the Administration’s enforcement of anti-dumping laws. And the law is intended to prevent domestic industries from being destroyed by imports that are sold here at unfairly low or dumped prices. 

The Commerce Department determines the precise amount of duties that must be collected to increase the price of dumped imports 

75 

to a non-injurious level, and estimated $400 to $500 million in antidumping duties build on four different types of agricultural imports 

from China have remained uncollected, and even though their payment is secured by specialized single-entry customs bonds, which 

are referred to new shipper bonds, that were issued by well-known 

U.S. insurance companies. 

The question is, will you commit to provide Congress with a full 

accounting of all the new shipper bonds that secure anti-dumping 

duties on these agricultural imports from China and a plan for collecting the unpaid dumping duties secured by these bonds? 

Ms. PRITZKER. Senator, I am not familiar with exactly what you 

are discussing. I know what anti-dumping is. But I will look into 

it, and I will commit to work with you on this issue. 

Senator THUNE. There are a number of honey producers in South 

Dakota who would be very happy to hear that answer. There is a 

lot of transshipped honey from China, and the enforcement mechanisms that are available to prevent that do not get effectively utilized. So we would welcome your help with that particular issue. 

Ms. PRITZKER. Well, making sure that not just honey producers, 

but our American companies are all on a level playing field, and 

that our laws are not being skirted is an important objective. And 

if I am confirmed, I will work on that. 

Senator THUNE. OK. Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Thune. I want to thank you, 

Ms. Pritzker—— 

Ms. PRITZKER. Thank you. 

The CHAIRMAN.—for this hearing. I think you have one of the 

three toughest jobs in Washington. I know you do. I put the President and DoD maybe ahead, but I cannot think of anybody else. 

And I also want to thank you. I want to thank your family members for being here. I want to thank your husband for helping me 

stand up in the other room while we were waiting. He is a big, 

strong guy. It was not very hard for him. 

And I also want to thank our audience that is here. We did something we have never done before, and that was just because of, you 

know, the importance of this nomination. We opened up a whole 

other room, actually a Defense Armed Services room. And they are 

sitting there watching television of this, and I think that is very, 

very important. 

So I very much appreciate our audience. I very much appreciate 

our colleagues. And I very much appreciate you. I really wish you 

well on this. You will certainly have my vote. And so that is that. 

Ms. PRITZKER. Thank you, Senator. 

The CHAIRMAN. The hearing is adjourned. 

Ms. PRITZKER. Thank you. 

[Whereupon, at 1:05 p.m., the hearing was adjourned.] 

(77) 

A P P E N D I X 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. JOHN D. ROCKEFELLER IV 

TO PENNY PRITKZER

Rural Areas 

Too many rural areas of our country, including my home state of West Virginia, 

remain insular and isolated from the prosperity that more populated and urban regions take for granted and enjoy every day. In West Virginia, we have made significant strides in many areas with the support of the Department of Commerce, most 

especially through the Economic Development Administration and the International 

Trade Administration. However, our work is far from over—West Virginia and other 

rural areas across the Nation continue lag behind in job creation, infrastructure, 

and financial resources necessary to build a strong middle class and a healthy economy for the future. 

Question 1. What are your intentions to make sure that rural areas throughout 

the country, including West Virginia, receive the support they need from the Department of Commerce? 

Answer. I believe that spurring job creation and economic growth in rural regions 

across the country is absolutely essential to U.S. economic health and competitiveness. If confirmed, I look forward to continuing the important role of the Department of Commerce in supporting the rural economy. 

I understand that the Economic Development Administration (EDA) has been a 

strong supporter of rural economic growth. For example, EDA partnered with the 

U.S. Department of Agriculture (USDA), and the Appalachian Regional Commission 

on the Administration’s Rural Jobs and Innovation Accelerator Challenge to 

strengthen rural economies. Similarly, I understand the Investing in Manufacturing 

Communities Partnership (IMCP) expands on Commerce’s partnership with the 

USDA, helping communities—both rural and urban—to attract private direct investment. If confirmed, I will work with my counterparts across the Federal Government to make the IMCP as effective as possible in promoting economic growth and 

job creation. 

Additionally, expanding high-speed Internet services to rural areas was a major 

component of the 2009 America Recovery and Reinvestment Act. These projects are 

managed and overseen by the National Telecommunications & Information Administration. 

I also believe it is important to utilize on-line resources such as BusinessUSA to 

provide businesses easier access to the Commerce Department and other Federal 

Government services regardless of where a business is located. BusinessUSA is a 

one-stop, on-line platform designed to make it easier for businesses to access government resources across a number of Federal agencies. 

These are just a couple of ways the Commerce Department has been engaged in 

promoting rural economic growth. If confirmed, I look forward to working with Congress on supporting America’s rural economy. 

Question 2. If confirmed, will you work with me to make sure that the West Virginia Economic Development Representative position at the Economic Development 

Agency is filled in the near future by an in-state representative who is intimately 

knowledgeable of the people, communities, and projects in West Virginia? 

Answer. As a nominee, I am not familiar with the status of the West Virginia Economic Development Representative position. If confirmed, I would be happy to inquire and make sure your recommendation to fill the position with an in-state candidate is carefully considered. 

78 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. MARIA CANTWELL TO

PENNY PRITKZER

International Pacific Halibut Commission 

Question 1. The Department of Commerce oversees a number of key nominations 

and appointments at the National Oceanic and Atmospheric Administration. Mr. 

Bob Alverson, a halibut fisherman from Seattle, was nominated to be a Commissioner on the International Pacific Halibut Commission for the non-Alaska seat. 

Recreational, commercial and tribal Pacific halibut fisheries provide jobs to fishers, 

outfitters, processors, seafood retailers and shipyards throughout the Pacific Northwest. According to the International Pacific Halibut Commission’s Annual Report, 

the sport halibut fishery is second only to salmon, with landings reaching over 

370,700 pounds in 2010. In addition, the commercial halibut catch on the West 

Coast was 407,600 pounds supporting many commercial fishing jobs both in our 

coastal communities, in the Puget Sound and in ports up the Columbia River. 

Despite Pacific halibut’s importance to our coastal economies, the Department of 

Commerce has failed to appoint commissioners. Mr. Alverson has been waiting over 

a hear and a half to hear from the Department. 

Ms. Pritzker, when confirmed, will you select a commissioner for the International 

Pacific Halibut Commission? By what date will you have commissioners selected, 

and notified of their selection? In your role as Secretary, how will you prevent long, 

costly, drawn out appointment processes at the Department of Commerce in the future? 

Answer. As a manager, I believe it is essential to have the right people in the 

right positions. If confirmed, I look forward to being briefed on the nominees under 

consideration and making a selection informed by expertise, skill, and endorsements, including those of Congress. If confirmed, I would be happy to have a conversation about any nominees you support at an appropriate time. 

Bristol Bay Pebble Mine 

Question 2. Thousands of commercial, subsistence and recreational fishermen 

have contacted me about protecting salmon in Bristol Bay, Alaska. Bristol Bay is 

home to the largest sockeye fishery in the world, and one of the largest Chinook 

fisheries. The commercial sockeye fishery is worth $1.5 billion alone, supporting 

thousands of jobs in Washington State. 

According to EPA’s Draft Watershed Assessment released on April 30, 2013, ‘‘An 

Assessment of the Potential Mining Impacts on Salmon Ecosystems of Bristol Bay, 

Alaska’’ (EPA 910–R–12–004Ba), the proposed Pebble Mine threatens Bristol Bay 

salmon habitat. 

The Pebble Mine would be one of the largest hard rock mines in the world and 

the largest copper porphyry mine in the United States. Water contamination and 

habitat loss from the construction and operation of a hard rock mine in Bristol Bay 

would put thousands of fishery-related family wage jobs at risk. 

Ms. Pritzker, when confirmed you will oversee NOAA, the agency responsible for 

managing our Nation’s fisheries. What is your position on the proposed Bristol Bay 

Pebble Mine? Are you prepared to direct NOAA fishery scientists and economists 

to become more engaged with the EPA? 

In part, we see the Secretary of Commerce as a protector of our marine and coastal natural resources. However, a huge part of your future job will be to protect the 

jobs, which rely on those natural resources. Commercial, recreational and tribal 

fisheries create thousands of jobs in Washington, supporting even more shipbuilding, processing, gear and other support jobs. As Secretary, how will you work 

with fishermen to ensure long-term sustainability of our maritime resources and our 

maritime economies which rely on them? 

Answer. While I am very familiar with the cultural, environmental, and economic 

importance of salmon to your state, and the Pacific Northwest, I am not familiar 

with this specific project or the EPA’s specific work on it. I agree that NOAA has 

incredible scientific expertise it can lend to others regarding how development can 

affect fish and habitat and, if confirmed, I will support and promote NOAA’s role 

in these efforts. 

My vision is for healthy fish populations that can support a healthy, successful 

and profitable fishing industry. A healthy environment and a healthy economy are 

inextricably linked, especially in coastal communities that are supported by the fishing industry. If confirmed, I look forward to working with NOAA, Congress and the 

fishing community towards that end. 

79 

Subsistence Fisheries in Bristol Bay, Alaska 

Question 3. In addition to the $1.5 billion annual economic value of the Bristol 

Bay sockeye fishery, are you aware of the importance Bristol Bay salmon to Alaska 

Native subsistence users? Subsistence salmon harvest is 60 percent of the overall 

diet of most area residents. Not only is subsistence salmon at the center of Alaska 

Native culture, but today, an economic imperative as well. Are you familiar with the 

cost of living in rural Alaska? The cost of one gallon of milk can be as high as 

$10.00. There is no replacement value for subsistence fish that is a necessary part 

of the subsistence diet. 

Ms. Pritzker, How do you view the Department of Commerce’s role in ensuring 

subsistence salmon users have healthy salmon runs for generations to come? How 

will your agency work with Alaska Native people to ensure they have a voice in fisheries management and research? 

Have you ever consulted with a federally recognized Tribe? Are you aware of 

President Obama’s stated position that tribal governments are political entities and 

entitled to government to government consultation? 

Answer. I support President Obama’s position. I am also aware of the Department’s ‘‘Tribal Consultation and Coordination Policy’’ recently signed by Acting Secretary Rebecca Blank that recognizes the importance and responsibility the Department has in consulting with tribes when it comes to the development of new policies 

that have tribal implications. 

I understand how important salmon are to Washington’s economy, culture and environment. I also understand the importance of subsistence fishing. I think all of 

NOAA’s efforts around fisheries management should be transparent and well communicated to all concerned with these issues, including Alaska Natives and American Indian tribes. The Department of Commerce has a Senior Advisor on Native 

American Affairs who works regularly on fisheries issues with NOAA and the tribes. 

If confirmed, I look forward to working with NOAA to have every voice heard 

throughout the fishery management process. 

Halibut, Sablefish Hired Skipper Rulemaking 

Question 4. The NOAA National Marine Fisheries Service is proposing to expand 

the owner-on-board requirement in the North Pacific halibut and sablefish individual fishing quota program. What concerns me is that the rule would be applied 

retroactively to prevent the use of quota purchased in earlier concluded legal contracts. What is your response to concerns that the rule will run afoul of the landmark Supreme Court decision in Bowen v. Georgetown which clearly prohibits retroactive rules of this nature? How will you engage with quota holders to ensure that 

their businesses, and their rights, are protected? 

In addition, NOAA’s proposed rule would compel disabled Americans to operate 

fishing vessels or be forced to sell their quota shares. The rule would also make it 

impossible for previously grandfathered corporations, virtually all of them family 

owned small businesses, to remain in the fishery. I am very concerned that this rule 

violates the Rehabilitation Act of 1973 that prohibits discrimination against disabled persons, and will violate the applicable standards in the Magnuson-Stevens 

Fishery Conservation and Management Act and the Halibut Act requiring that fishery management measures be fair and equitable to all fishery participants. What 

is your position on requiring disabled Americans to sell their quota because they are 

not able to skipper their vessels? What is NOAA doing to ensure they are in compliance with the Rehabilitation Act of 1973? 

Answer. I have not yet become familiar with the specifics of fishery management 

plans or proposed rules, but if I am confirmed, I pledge to look into these issues 

and speak with you further about your concerns. 

North Pacific Fishery Management Council 

Question 5. The North Pacific Fishery Management Council has critically important responsibilities for Federal fishery management off the Coast of Alaska. As you 

know, thousands of Washingtonians make a living fishing off Alaska. Unfortunately, 

the Council voting record reflects the fact that, more and more, the Alaska voting 

majority is making decisions that disadvantage non-Alaskan participants in these 

Federal fisheries. Most often, the NOAA official who is a voting member of the 

Council, and who is based in Alaska, votes with the Alaskan majority despite the 

pattern of discriminatory decisions. What concrete steps will you take to ensure that 

these Federal fisheries are managed as the law requires, that is, fairly for all participants? What steps could Congress take to remedy this situation? What will you 

do to ensure that adequate oversight is occurring on the Council? 

There have also been a number of legally-questionable position papers coming 

from regional NOAA staff, not council members (see Amendment 80 vessel replaceVerDate Nov 24 2008 07:34 Apr 10, 2015 Jkt 075679 PO 00000 Frm 00083 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\94056.TXT JACKIE
80 

ment white paper, the cost recovery white paper and the halibut/sablefish skipper 

rulemaking process). How will you improve NOAA General Counsel oversight in the 

Alaska region while maintaining a bottom-up science based fishery management 

process? 

Answer. I am not yet conversant in the specifics of fishery management. While 

I know that West Coast and Alaska fisheries are hugely important for fishermen 

and the communities they support, I am not precisely familiar with specific Council 

processes or votes. If confirmed, I will expect the Department of Commerce and the 

NOAA General Counsel to ensure that all applicable laws are being followed in everything that the agency does. If confirmed, I look forward to learning more and 

speaking with you again about these issues. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. FRANK R. LAUTENBERG TO

PENNY PRITKZER

Question 1. The James J. Howard Laboratory, which is located in Sandy Hook, 

NJ, has existed for more than 50 years and performs research on maintaining 

healthy fisheries and protecting the ocean environment from the impacts of climate 

change. In FY 2013, the National Oceanic and Atmospheric Administration (NOAA) 

proposed closing this lab, but the House and Senate included language during the 

FY 2013 appropriations cycle prohibiting its closure. 

The Sandy Hook lab sustained significant damage during Superstorm Sandy, and 

NOAA included $2 million in its Sandy supplemental spending plan to begin some 

new construction at the lab. Will you support upgrading and improving the lab for 

the long-run? 

Answer. As a businessperson, I understand how safe facilities, which allow a team 

to perform the tasks they are charged with executing, are fundamental to an organization’s mission. If confirmed, I will bring that same philosophy to the Department 

of Commerce. With respect to the Sandy Hook lab, I know that it sustained considerable damage in Superstorm Sandy, as did many other areas of your state. If confirmed, I look forward to working with Congress and NOAA on New Jersey’s recovery. 

Question 2. New Jersey fisheries suffered as much as $121 million in damage 

from Superstorm Sandy, and Acting Secretary of Commerce Rebecca Blank declared 

a fishery resource disaster in New Jersey and New York on November 16, 2012. The 

Sandy supplemental bill the Senate initially passed in December included $150 million specifically for fisheries, but the House cut this to just $5 million, which is the 

amount the final bill included. 

When will NOAA release the $5 million in fisheries disaster funding to New Jersey and New York? 

Will you support additional funding beyond the $5 million already appropriated 

for fisheries impacted by Sandy? 

Answer. I know New Jersey’s fishing community was deeply impacted by 

Superstorm Sandy and those dollars are important to getting the industry back on 

its feet. I’m not familiar with the Federal processes in place that transmit funds to 

the states, but pledge to look further into that issue, if confirmed. 

If confirmed, I also commit to doing everything possible to help communities affected by Superstorm Sandy to be better prepared for future storms by improving 

forecasting, and helping coastal communities rebuild their environment and economies in ways that are smart and safe. 

Question 3. I wrote the law making NOAA within the Department of Commerce 

the lead agency in conducting research on ocean acidification. Will you make sure 

that ocean acidification research continues to be a priority for the Commerce Department? 

Answer. Ocean acidification research is essential for supporting jobs by understanding how acidification impacts fisheries and aquaculture, and for advancing our 

understanding of climate change impacts in general. If confirmed, I look forward to 

lending my support to NOAA’s work on this issue and to working with Congress 

on this issue in the future. 

Question 4. The Arab League, an umbrella organization comprising 22 Middle 

Eastern and African countries and entities, has maintained an official boycott of 

Israeli companies and Israeli-made goods since the founding of Israel in 1948. The 

Department of Commerce’s Bureau of Industry and Security (BIS) is charged with 

administering and enforcing the U.S. laws that have been enacted to prohibit U.S. 

companies from furthering or supporting the Arab League’s boycott of Israel. DeVerDate Nov 24 2008 07:34 Apr 10, 2015 Jkt 075679 PO 00000 Frm 00084 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\94056.TXT JACKIE
81 

spite U.S. efforts, many Arab League countries continue to support the boycott’s enforcement. 

How will you work to maintain Commerce’s strong enforcement of U.S. laws enacted to combat the Arab League’s boycott of Israel? 

Will preventing the Arab League from joining the World Trade Organization 

(WTO) as long as it maintains its Israel boycott remain a top priority for the Commerce Department if you are confirmed? 

Will the Department post self-reports of anti-boycott violations directly on its 

website, as it once did? 

Answer. If confirmed, I will have the Department work to fully enforce all Commerce antiboycott regulations and will follow U.S. Government policy to encourage 

boycotting countries to end their boycotts. 

Currently, about half of the Arab League members are also members of the WTO 

and are obligated to apply all WTO commitments to all other WTO members, including Israel. The U.S. Government has worked to eliminate domestic boycott laws 

when negotiating WTO accession agreements with individual Arab League members. If confirmed, I will have the Department work with USTR to continue this important work. I would also make it a priority to urge WTO members of the Arab 

League to end all boycott activities, including enforcement of any domestic laws that 

continue to include boycott provisions, and to remind them that such activities are 

in violation of their WTO obligations. 

U.S. firms are prohibited from taking actions that have the effect of furthering 

foreign unsanctioned boycotts, including responding to certain requests for information from boycotting countries. They are required to report receipt of any such requests to the Department of Commerce’s Office of Antiboycott Compliance (OAC). 

I understand that OAC currently posts documents relating to closed cases involving 

antiboycott violations on its Electronic FOIA Reading Room website and that they 

are actively working to provide online access, via the Electronic FOIA Reading 

Room, to reports of boycott requests received by U.S. businesses and forwarded to 

OAC. 

Question 5. As a member of the Cabinet, you would be one of the President’s closest economic advisers. President Obama has made clear that in order to pay for the 

investments needed to create jobs and provide opportunities for future growth and 

innovation, we need to increase revenue by eliminating special tax breaks and making sure the wealthy pay their fair share. Do you support the President’s plan to 

reduce the deficit and promote job growth by closing tax loopholes and ending special tax breaks for the wealthy? 

Answer. Yes. I support the President’s call for comprehensive tax reform as part 

of a balanced plan to reduce the deficit, bolster economic growth and increase job 

creation. 

As President Obama has made clear, comprehensive reform of both the business 

and individual tax systems should include serious scrutiny of tax breaks that distort 

economic behavior, are unfair, or inefficient. I support the President’s approach on 

this issue. 

Question 6. Commerce plays a central role in ensuring sensitive dual-use technology does not fall into the hands of rogue nations like Iran. The agency conducts 

critical export control enforcement activities, including end-use checks, to identify 

and penalize violations of our export laws. While significant progress has been made 

in the last several years to stop the transshipment of U.S. goods to Iran, U.S. officials have noted that Iran has obtained military and dual-use goods that have been 

illegally transshipped through countries like the UAE, China, and Singapore. Currently, the Commerce Department only has seven export control agents outside the 

United States, including one in the UAE and two in China. 

How will you work to support and expand Commerce’s export control enforcement 

activities, particularly end-use verifications? 

Will you support additional resources being committed to post additional export 

control agents outside of the U.S.? 

Answer. If I am confirmed, ending transshipment of sensitive dual-use technologies to prohibited countries, such as Iran, will remain a top priority of the Department of Commerce. I understand that while there are currently only seven export control officers (ECOs) outside of the United States, the Department has determined the need for additional ECOs to be placed in Frankfurt, Istanbul, and Dubai 

in order to increase its enforcement coverage across the world. I support the increase in the number of ECOs. If confirmed, I will work with BIS leadership in an 

effort to find resources to increase the number of ECOs around the world as well 

as increase the Department’s Sentinel Program footprint. 

82 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. MARK PRYOR TO

PENNY PRITKZER

Science Parks 

Section 603 of the America COMPETES Reauthorization Act established a Regional Innovation Program. The program has two components. A grant program for 

regional innovation clusters and planning grants for the development of science and 

research parks and a loan guarantee for the construction and renewal of these 

science and research parks. 

The Senate Appropriations Committee has twice provided some funding for this 

Regional Innovation Program. However, the Administration has decided not to request any funding for this program in the President’s Fiscal Year 2014 budget request. Furthermore, the Department of Commerce continues to refuse to stand up 

the science park loan guarantee authorized by law. 

Question 1. Why has the Department of Commerce decided to no longer support 

the Regional Innovation Program? 

Question 2. Why did the Department of Commerce include the Regional Innovation Program in the Economic Development Assistance Program (EDAP) the past 

two years, which has specific strings attached, rather than as a separate line item 

in the budget? 

Answer. As a nominee, I am not familiar with the budgetary decisions the Department made on this issue. If confirmed, I will look into this issue further. However, 

like you, I believe that driving innovation and research is critical to driving economic growth in our country. I understand the Administration has been steadfast 

in its support for regional innovation and economic growth. Over the past four 

years, the Administration has proven—through pilots like the Jobs and Innovation 

Accelerator Challenges, i6 Challenges and other regional economy initiatives—the 

success of using coordinated, streamlined, multi-agency national competitions that 

break down silos and integrate Federal resources in a highly effective way and that 

focus on regional economies and specific sectors. 

I am particularly interested in the Administration’s Investing in Manufacturing 

Communities Partnership proposal, which would use the COMPETES Act authority 

you reference to launch a major nation-wide competition. I understand this effort 

would reward communities for their policies to support local workforce skills, research, supply chains, and infrastructure. If confirmed, I will work with my counterparts across the Federal Government to make the IMCP as effective as possible. 

Question 3. If you agree with me that science and research parks are an important physical element need for translational research and development, what does 

the Department of Commerce intend to do regarding the loan guarantee program? 

Do you have an alternative suggestion for funding this critical link of the innovation 

ecosystem? 

Answer. I agree that science and research parks are an important component of 

America’s innovation infrastructure because of the critical and necessary link they 

make between the creation of intellectual property and commercialization of new 

and innovative products that result in higher-wage jobs and globally competitive industries. 

It’s my understanding that the Economic Development Administration is working 

on acquiring staff to help it stand up its mandated loan guarantee programs, and 

assuming that the loan guarantee program for science and research parks is re-authorized, it will work aggressively to put in place the necessary regulations, program 

guidance, marketing, accounting and oversight functions to administer this program 

effectively. If confirmed, I will certainly look into this issue further. 

Rural Broadband 

As Chairman of the CTI subcommittee, I have jurisdiction over the National Telecommunications & Information Administration (NTIA), which is housed under the 

Department of Commerce. Bringing high-speed broadband to all rural consumers is 

vital to the future of the Nation. Broadband is the gateway to the worldwide digital 

economy, and offer access to world-class education, healthcare, entertainment, and 

civic engagement. 

Question 4. Under your leadership, how would the NTIA continue to support 

broadband deployment and adoption as the Recovery Act grant programs wind 

down? 

Answer. I recognize the importance of expanding broadband deployment and 

adoption in the United States. We need to maximize broadband so that businesses 

can compete in the global economy; students in even the most remote areas can acVerDate Nov 24 2008 07:34 Apr 10, 2015 Jkt 075679 PO 00000 Frm 00086 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\94056.TXT JACKIE
83 

cess the best online courses and teachers; and institutions like hospitals, libraries, 

and first responders can make use of cutting-edge applications. Even after the completion of the $4 billion in broadband projects administered by 

the National Telecommunications and Information Administration (NTIA) through 

the Broadband Technology Opportunities Program (BTOP), there will continue to be 

significant need for additional steps to increase broadband access and adoption. For 

example, current data show that nearly a third of Americans do not subscribe to 

broadband, and many anchor institutions do not have access to the high-speed 

broadband they require to fulfill their missions. If confirmed, I am committed to 

working with NTIA and others to harness the lessons learned from BTOP and leverage these investments so that more Americans can take advantage of the tremendous benefits that broadband affords. 

Question 5. What do you think is the biggest challenges in bringing next generation Internet and communications networks to rural America? 

Answer. Historically, America’s rural communities have been slow to receive highspeed Internet and communications networks because industry has a harder time 

finding the economic justification to invest in these higher cost and lower population 

density areas. Clearly, we must work harder to provide the benefits of broadband 

to rural America. 

Through NTIA’s BTOP, the Department of Commerce invested $4 billion in grants 

to expand broadband networks, make public computer centers available, and promote broadband adoption throughout the Nation. It is also engaged in an extensive 

effort to make additional spectrum available for commercial wireless broadband 

service so that rural and other communities can more cost-effectively benefit from 

the latest in wireless broadband technology. 

If I am confirmed as Commerce Secretary, I will work diligently with NTIA, Federal agency partners, and other stakeholders to help rural communities benefit from 

the latest in broadband technologies. 

Strong and Strictly Enforced U.S. Trade Laws 

Thousands of American companies and hundreds of thousands of American workers depend on our trade remedy laws for protection against unfairly traded imports. 

Our antidumping (AD) and countervailing duty (CVD) laws are an integral part of 

‘‘the rules-based international trading system,’’ and they are the last vital defense 

for U.S. manufacturers against foreign unfair trade. 

Question 6. As Secretary of Commerce, will you commit to making enforcement 

of our trade laws a top priority of the Department? 

Answer. If confirmed, I will make enforcing our trade laws and agreements a top 

priority. American companies and American workers are the best in the world. U.S. 

firms and workers can compete and win in the global marketplace when we have 

a level playing field. If our Nation is going to reap the full benefits of trade, we must 

take seriously our obligation to call a foul when we see one and hold our trading 

partners accountable. I believe that we need to do everything we can to grow our 

economy through robust monitoring and enforcement of U.S. rights under international trade agreements and through enforcement of domestic trade laws. 

Question 7. Will you take the lead—in multilateral and bilateral negotiations— 

in defending, preserving and enhancing U.S. laws against unfair trade, and in opposing any efforts to weaken these laws? 

Answer. I believe helping American firms and workers compete on a level playing 

field and reach more global buyers is a vital part of the job. Strong U.S. laws 

against unfair trade are vitally important. 

If confirmed as Commerce Secretary, I will take full advantage of my leadership 

roles in the Joint Commission on Commerce and Trade, the Strategic and Economic 

Dialogue, and other fora to strengthen trade disciplines that address unfair trade 

practices, strengthen intellectual property rights enforcement abroad, expand market access for U.S. exporters, remove barriers to U.S. investment in foreign markets, 

and promote international travel and tourism in the U.S. among other priorities. 

The Commerce Department co-leads the Interagency Trade Enforcement Center 

(ITEC) with the Office of the United States Trade Representative. It is my understanding that the ITEC has played a critical role in providing research and analysis 

necessary to the initiation of a number of important legal challenges in the WTO 

of foreign unfair trade barriers and practices. If confirmed, I will fully support the 

ongoing work of the ITEC to challenge unfair trade practices around the world to 

help U.S. firms and workers succeed in the global marketplace. 

Question 8. If you are confirmed, will you instruct the Commerce Department to 

investigate allegations with respect to foreign government currency practices to determine whether they provide a countervailable subsidy under U.S. law? 

84 

Answer. It is my understanding that the Department has analyzed currency allegations to determine whether they met the requirements for initiation of a countervailing duty investigation under U.S. law. In the past, the Department has found 

that petitioners have not met the initiation requirements under U.S. law when alleging that a country’s currency practices constitute a countervailable subsidy. 

I can assure you that, if I am confirmed as Secretary, the Commerce Department 

will vigorously enforce our trade laws, including our antidumping and countervailing duty laws that address unfair dumping and subsidies. When a countervailing duty allegation meets the legal requirements for initiation, the Department 

will investigate. 

If confirmed, I look forward to working with Congress to provide a level playing 

field for U.S. workers and companies. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. MARK BEGICH TO

PENNY PRITKZER

Question 1. In response to sequestration, NOAA has instituted a hiring freeze, 

and I am concerned about how the agency will keep weather forecast offices adequately staffed as a result. I understand the agency has a process for granting exceptions to the hiring freeze and a board to consider those exceptions. Can you tell 

me what positions that board has considered thus far and what exceptions to the 

hiring freeze have been granted? 

Answer. I know how weather events can impact the lives and safety of our citizens and the operations and success of our businesses. I have talked with NOAA’s 

Acting Under Secretary, Dr. Kathy Sullivan, who has assured me that the hiring 

freeze will not affect critical missions and services, including forecasts. As a nominee, I am not familiar with the hiring freeze specifics. If confirmed, I look forward 

to working with NOAA and Members of this Committee to support the National 

Weather Service so that it can fulfill its critical mission to protect life and property 

with accurate and timely weather forecasts and warnings. 

Question 2. Intellectual property is crucial to the well-being of our economy. The 

U.S. is the largest recipient of R&D spending across the globe. In fact, 30 percent 

of the American workforce is employed directly or indirectly in IP-intensive industries. India has made a number of troubling decisions related to incremental innovation, patentability, and compulsory licensing over the last year that threaten to 

spread to other markets and slow down overall R&D investment. What does the Department of Commerce plan to do to ensure India’s actions (and the possibility that 

other countries may copy India) don’t have a direct negative impact on jobs here 

at home? 

Answer. I share your concerns about any unfair trading practices that hurt U.S. 

businesses. I know that doing business in India can pose challenges for U.S. companies, from intellectual property issues to a variety of other trade barriers. I believe 

we should hold every country, including India, to their commitments. 

I know the Commerce Department has commercial service officers on the ground 

in India and around the world who are focused on helping U.S. businesses deal with 

these challenges. If confirmed, I will promote U.S. exports vigorously, and support 

our commercial diplomacy efforts across the globe to address unfair trading practices on behalf of U.S. firms and workers. Providing a level playing field for U.S. 

exporters requires tough trade enforcement, which will be a top priority for the 

Commerce Department if I am confirmed as Secretary. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. BRIAN SCHATZ TO

PENNY PRITKZER

Question 1. In 2012, the Secretary of Commerce, John Bryson, and the Secretary 

of Interior, Ken Salazar, announced the National Travel and Tourism Strategy to 

promote domestic and international travel in the U.S. The National Strategy recognizes the importance of the travel and tourism industry to the U.S. economy and 

establishes a goal of increasing American jobs by attracting 100 million international visitors annually by the year 2021. What steps will you take to promote 

travel and tourism as a national priority? 

Answer. I recognize that the U.S. travel and tourism industry is a substantial 

component of U.S. GDP, exports, and employment and efforts to make America the 

top tourist destination in the world offer a tremendous opportunity to create jobs 

and strengthen the U.S. economy. 

85 

In 2012, more than 66 million international tourists visited the United States, 

generating an all-time record of $168 billion in revenue—an increase of 10 percent 

from 2011. This is a new record for expenditures by international travelers to the 

United States, supporting economic growth, job creation and contributing positively 

to our balance of trade. This sector’s economic potential continues to grow. 

I have read the strategy and I think it provides an excellent framework which 

will increase travel and tourism in the United States. The strategy aims to help attract more than 100 million international visitors to the United States annually by 

2021. These international visitors are projected to spend an estimated $250 billion 

per year, creating jobs and spurring economic growth in communities across the 

country. The strategy also encourages more Americans to travel within the United 

States. 

I am enthusiastic about the Administration’s travel and tourism strategy, and if 

confirmed, I look forward to leveraging my more than 27 years of experience in the 

hospitality industry to promote America as the top tourist destination in the world. 

Question 1a. Please describe how you plan to work with other Federal agencies, 

state, local, and tribal governments, and the private sector to meet this goal? 

Answer. If I am confirmed, I will work closely with the Commerce Department’s 

interagency partners through the Tourism Policy Council to successfully implement 

the National Travel and Tourism Strategy. Specifically, I will seek to expand efforts 

through BrandUSA and other partnerships to communicate a welcoming message to 

international visitors. I believe the Federal Government should fully utilize its resources to communicate travel opportunities in the U.S. to the international community as well as travel and tour operators globally. 

Additionally, in coordination with the Departments of State and Homeland Security, I will advocate to keep visa interview wait times low and to expand visa processing capacity when needed to meet demand in key locations. I believe providing 

a high quality visitor experience at Federal sites and fostering a skilled tourism 

workforce are also important priorities. State, local and tribal governments are also 

important partners in the Administration’s efforts to expand travel and tourism 

and, if confirmed, I pledge to include and engage intergovernmental partners moving forward in working collectively to achieve the strategy’s goal of attracting more 

visitors to the U.S. 

Question 2. Tourism is a key economic driver in Hawaii and a large percentage 

of the state’s service exports. For example, visitors spent $12.25 billion in Hawaii 

in 2011, and, of the $3.5 billion that Hawaii’s service exports in 2011, $1.7 billion 

(48 percent) came from travel services. The U.S. Commercial Service’s Hawaii U.S. 

Export Assistance Center has played a key role in supporting local businesses to develop export markets for their businesses, such as organizing trade missions to Asia. 

The return on investment for U.S. Export Assistance Centers in the U.S. is $215 

in sales for each Federal dollar spent to operate the program. In Hawaii, the return 

on investment is $7,042 in sales for each Federal dollar spent. Since its establishment, the Hawaii U.S. Export Assistance Center has helped to generate $1 billion 

in export sales. What steps will you take to ensure that the domestic U.S. Export 

Assistance Centers have the necessary support to provide these services that are important to U.S. economic growth? 

Answer. I agree that U.S. Export Assistance Centers (USEACs) provide valuable 

services which enable small-and medium-sized businesses in Hawaii and throughout 

the Nation to succeed by helping clients export their products and services. Trade 

professionals at USEACs and throughout the Commerce Department provide U.S. 

firms with market intelligence, trade counseling, business matchmaking, advocacy 

support and other services to help them achieve their exporting goals. 

The President has set a goal through the National Export Initiative (NEI) of doubling exports of U.S. goods and services and adding two million export supported 

jobs by the end of 2014. The services provided by the Commerce Department to help 

U.S. firms grow exports and expand market access are an integral part of this important effort. If I am confirmed, I will work to support the Commerce Department’s 

trade professionals so they can have the support and resources they need to continue to provide quality export assistance services to benefit U.S. businesses and 

workers. 

Question 3. President Obama launched a government-wide strategy to promote exports that draws on the resources and expertise of the Department of Commerce, 

the Ex-Im Bank, the Small Business Administration, and Office of the U.S. Trade 

Representative. One of the goals of the National Export Initiative is to increase the 

export capabilities of small businesses. In Hawaii, a majority of Hawaii’s exporters 

are small businesses, which reflects the strong tradition of small businesses in the 

State. However, Hawaii’s small businesses have not been able to participate in FedVerDate Nov 24 2008 07:34 Apr 10, 2015 Jkt 075679 PO 00000 Frm 00089 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\94056.TXT JACKIE
86 

eral export promotion activities to the same degree as small businesses in other 

states. For example, between 2007 and 2013, the Ex-Im Bank only provided loans 

to 5 small businesses in Hawaii. Ex-Im Bank has a goal of reaching 5,000 new small 

businesses by 2014, but it seems that more collaboration is needed amongst Federal 

agencies to help connect Hawaii’s small businesses with existing resources. How will 

you increase small businesses’ access to export promotion resources, including financing from Ex-Im Bank, to ensure that small businesses from even the smallest 

and most remote regions of the U.S. are contributing to our Nation’s exports? 

Answer. The National Export Initiative (NEI), led by the Commerce Department 

in coordination with other Federal agency partners, seeks to double exports of U.S. 

goods and services and add two million export supported jobs by the end of 2014 

by removing trade barriers abroad, helping firms enter new foreign markets, and 

providing assistance with export financing. The Export-Import Bank partners with 

the Commerce Department and other Federal agencies to provide export financing 

assistance to U.S. firms. 

The Secretary of Commerce is a member of the President’s Export Promotion Cabinet (EPC), which, in support of the NEI, is implementing a plan to increase the 

national base of small business exporters by 50,000 by 2017, expand the reach of 

Federal export assistance, and better utilize the Federal footprint abroad to support 

our exporters. The Commerce Secretary also chairs the Trade Promotion Coordinating Committee (TPCC), an interagency committee that coordinates the export 

promotion and export financing activities of the U.S. Government. If confirmed, I 

look forward, through my position on the EPC and leadership of the TPCC, to gaining more insight into how Federal agencies are currently working in partnership to 

provide export financing assistance as well as ways the Administration can further 

enhance export financing assistance to U.S exporters, including small businesses. 

Additionally, if confirmed, I would support a ‘‘no wrong door’’ approach so that agency officials are trained and able to refer businesses seeking assistance to the agency 

or department within the Administration that is best able to provide the requested 

export assistance services. 

Question 4. The Department of Commerce’s National Telecommunications and Information Administration (NTIA) is the principal advisory office on domestic and 

international telecommunications and information policies. The Middle Class Tax 

Relief and Job Creation Act of 2012 (P.L. 112–96) established the First Responder 

Network Authority (FirstNet) within NTIA to develop a nationwide interoperable 

broadband network for first responders. NTIA is preparing requirements for the 

State and Local Implementation Grant program as part of it support of FirstNet to 

assist state, local, and tribal governments with planning for the public safety network. As you may know, Hawaii has unique communications challenges that are 

due to the geographic isolation, difficult terrain, wide range of disasters, and limited 

commercial infrastructure. As NTIA supports FirstNet and the development of the 

public safety network, what steps will you take to ensure that the needs of rural 

communities are taken into consideration? 

Answer. Historically, America’s rural communities have been slow to receive highspeed Internet and communications networks because industry has a harder time 

finding the economic justification to invest in these higher cost and lower population 

density areas. If confirmed, I will work hard to provide the benefits of broadband 

and FirstNet to rural America. 

I applaud this Committee for this important initiative. If confirmed, I will make 

sure the Department fulfills its responsibilities to help make the nationwide firstresponder network a reality in all parts of our country. I understand that in the 

coming months, FirstNet will be consulting with State, tribal, local, and public safety communities to determine their requirements for the nationwide network. 

Additionally, FirstNet will be reaching out to industry stakeholders, working with 

standards-setting bodies, and conducting extensive technical and financial modeling 

and market research to formulate a preliminary plan for its network design. If confirmed, I will work with Congress and FirstNet toward the success of this vital 

project in every state and region of our country. 

Question 5. NOAA does not drive the national economy in the same way as other 

agencies that have the capacity to train the workforce, or offer large scale infrastructure development. On the other hand, the environmental intelligence it provides has an impact that is difficult to quantify—but for example, simple day-to-day 

variability in the weather was estimated in 2008 to have an impact of roughly $485 

billion (in 2008 dollars), or about 3.4 percent of the 2008 gross domestic product. 

What do you see as the role of the Secretary to help ensure that U.S. businesses 

and communities alike take advantage of NOAA’s environmental intelligence to support better resilience to weather? 

87 

Answer. As a businessperson with 27 years of experience building and growing 

companies, I know how essential all different kinds of data are to one’s success. 

American companies rely daily on a variety of information disseminated by the Department of Commerce including demographic data, weather data, coastal data, and 

trade data to name a few. If confirmed, I would see my role as Secretary of Commerce as one in which I am an advocate for NOAA and the other Commerce agencies in supporting their ability to continue providing the economic and environmental intelligence they do today. As importantly, I would see my role as a spokesperson and promoter for that information to American businesses and the American 

public. It is important for business owners to know the information exists, how to 

access it, and how to use it. 

Question 6. The Department of Commerce has the lead to implement the RESTORE Act in part because if its capacity to support both environmental and economic recovery in the Gulf. What plans do you have to capitalize on the experience, 

and to bring a balanced, science-based approach to bolster other regions as they are 

struck by natural disaster? 

Answer. In October 2012, in accordance with the RESTORE Act, the States selected and the President appointed the Secretary of Commerce to chair the Gulf 

Coast Ecosystem Restoration Council (Council). This selection reflects the fact that 

the Department of Commerce’s strengths include the three pillars of the RESTORE 

Act framework: ecosystem restoration (National Oceanic and Atmospheric Administration); economic development (Economic Development Administration) and tourism promotion (the International Trade Administration’s Office of Travel and Tourism). If confirmed, I look forward to serving as the Chair of the Council. The Council 

has a unique opportunity to implement a coordinated Gulf Coast region-wide restoration effort in a way that restores and protects the Gulf Coast environment, reinvigorates local economies, and creates jobs. 

While the RESTORE Act was passed in response to the Deepwater Horizon oil 

spill and charged the Council with implementing a restoration plan specific to the 

Gulf Coast region, if confirmed, I would also welcome the opportunity to bring any 

applicable insights and ‘‘lessons learned’’ from the Council’s work to other regions 

of the country. 

Question 7. Currently, the Nation’s seafood trade deficit totals more than $11 billion annually. Responsible, environmentally-sound aquaculture is, in my opinion, a 

great way to correct this imbalance without putting additional pressure on our domestic fisheries. However, I understand that there is not a single aquaculture operation in U.S. Federal waters—even though, four years ago, the Gulf of Mexico Regional Fishery Management Council approved a Fisheries Management Plan for 

Aquaculture in waters 3 to 200 miles offshore in the Gulf. As I understand it, the 

stumbling block is that the Federal Government has still not approved regulations 

to implement the plan. What will you do to ensure the expedient review and approval of these regulations, and set-up of an efficient permit review process for new 

aquaculture ventures in the Gulf of Mexico waters—and to spread the model into 

other regions across the nation? 

Answer. I am aware of our country’s seafood trade deficit and the challenge before 

us to reduce it. Environmentally responsible aquaculture is one important avenue 

to reducing our Nation’s reliance on imported seafood and is an opportunity to create jobs here at home. I am not familiar with the current regulations or permit processes in place with respect to aquaculture, but, as a businessperson, I do know that 

a clear, reliable, consistent, and easily navigable set of processes and rules is important to entrepreneurs looking to invest in a new business. If confirmed, I look forward to working with Congress, NOAA and all stakeholders on the future of aquaculture in this country. 

Question 8. The United States of America has led the innovation in engineering 

of open ocean aquaculture cage aquaculture systems. In fact, one of my constituents 

Kampachi Farms, LLC, based in Kona, developed the Velella project, which was 

funded in part by NSF, and was named by TIME Magazine as one of the 25 Best 

Inventions of the Year for 2012. U.S. companies and universities also led the breakthrough research into hatchery production of marine finfish, such as kampachi, 

cobia, and pompano. 

I was dismayed to learn that the lack of a solid regulatory framework in the U.S. 

has forced my constituent to grow its business on foreign shores in locations as diverse as Mexico and the Middle East. As I understand it, they are not alone: the 

University of Miami hatchery technicians are now consulting throughout the world, 

and HUBBS Seaworld Research Institute, based in California, now ships their 

fingerlings down to Mexico. This means we are missing the boat on open-ocean cage 

aquaculture and the jobs it creates. 

88 

What will you do to help promote open ocean aquaculture in the U.S. and encourage these companies to bring their environmentally sound, responsible aquaculture 

practices back to U.S. shores? 

Answer. This is a challenge faced in any industry when the regulatory scheme is 

unclear or difficult to navigate. If confirmed as Secretary of Commerce, it will be 

one of my priorities to do all that we can to support American businesses to keep 

their business in this country and to support American jobs. I’m not familiar with 

the current regulations or permit processes in place with respect to aquaculture, 

but, as a businessperson, I do know that a clear, reliable, consistent, and easily navigable set of processes and rules is important to entrepreneurs looking to invest in 

a new business. If confirmed, I look forward to working with Congress, NOAA and 

all stakeholders on the future of aquaculture in this country. 

Question 9. Responsibly scaled, appropriately sited open ocean net pen culture has 

been demonstrated to have no significant environmental impact. Yet any aquaculturist faces a significant number of permits and multifaceted review processes: NOAA 

permission, Army Corps review, EPA’s National Pollutant Discharge Elimination 

System (NPDES), Coastal Zone Management (CZM) compliance review. The overlapping responsibilities and jurisdictions are extraordinarily complex and difficult to 

navigate, and are a deterrent to developing new open ocean aquaculture projects. 

What are your plans to develop an efficient, responsible open ocean aquaculture permit review process so that we can develop a U.S.-based industry that creates jobs, 

helps the economy, produces safe and healthy domestic seafood? 

Answer. I am not yet familiar with the permit process and other regulatory steps 

through which a company must progress to offer a plan. If confirmed, I look forward 

to learning more about offshore aquaculture and working with NOAA, other Federal 

agencies, states, the fishing industry and others with the aim of providing a regulatory framework and review process that supports responsible offshore aquaculture. 

Question 10. There is a growing market for imagery from commercial satellites— 

especially for finer and finer resolution as better technology becomes increasingly 

accessible to private enterprise. However, the finer levels of resolution also raise 

questions of national security—in other words, that the satellite images might reveal strategic locations and information to interests hostile to the United States. 

The jurisdiction to balance these competing economic and security interests lies in 

the Department of Commerce—specifically the National Oceanic and Atmospheric 

Administration’s Commercial Remote Sensing Regulatory Affairs Office. 

As I understand it, U.S. industry is limited by regulation to 0.5 meter resolution, 

while European competitors are beginning to grow into much finer resolution: on the 

order of 0.3 meters. Accordingly U.S. industry has a petition before this Department 

of Commerce regulatory office to weigh the economic and security interests. Regardless of the merits of the petition, I believe that the petitioners are entitled to a timely resolution one way or the other. May I have your commitment to ensure that this 

petition moves forward without undue delay? 

Answer. If I am confirmed, I commit to learn about this petition, look into the 

process and work with you. 

Question 11. I am also concerned that efforts to implement the International Traffic in Arms Regulations (ITAR) passed at the end of last Congress might somehow 

sidetrack this petition. As I understand it, imaging satellites are currently covered 

by ITAR, and so it is possible that the Commercial Remote Sensing Regulatory Affairs Office might hold off on adjudicating the petition regarding the limits on commercial imagery resolution to defer to the ITAR process. 

I have been briefed that the Department of Commerce has been participating in 

the ITAR process through its Bureau of Industry and Security (BIS), along with 

State and the Department of Defense, and so as Secretary you will have an understanding of both the ITAR and imagery resolution petition. How will ensure that 

the implementation of ITAR will not unduly hold up applications received by the 

Commercial Remote Sensing Regulatory Affairs Office? 

Answer. My understanding is that these are separate issues. The Commercial Remote Sensing Regulatory Affairs Office’s review of license applications and amendments is not affected by the proposed transfer of certain satellites and related items 

from the United States Munitions List (USML) to the Commerce Control List (CCL). 

If confirmed as Secretary, I will work closely with BIS to complete the transfer of 

satellite-related items from the USML to the CCL in a swift, but thoughtful manner 

in order to be responsive to U.S. commercial interests while safeguarding national 

security. The Commercial Remote Sensing Regulatory Affairs Office’s review of current and future license applications and amendments will follow its existing process. 

89 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. WILLIAM COWAN TO

PENNY PRITKZER

Question 1. For the 2010 decennial, the Census Bureau spent approximately $900 

million dollars developing its own in-house mapping function. Meanwhile, private 

sector companies are investing their own capital to create maps we all use every 

day on our mobile phones, on GPS devices, and in our vehicle navigation systems. 

These would seem to be largely duplicative efforts. In 2010, and again in 2012, the 

GAO recommended the Census Bureau look at private sector mapping as an opportunity to control costs and improve accuracy. To date, I understand that the Bureau 

has yet to work with those private sector sources of mapping data in a meaningful 

way. As we prepare for the 2020 decennial, would you support coordinating with the 

private sector to determine if there are effective mapping functions that can be provided at a similar quality for less expense? 

Answer. It is my understanding that the Census Bureau has begun working with 

private sector mapping sources. If confirmed, I will be happy to look into this issue 

further. 

Question 2. We’ve heard a great deal about the challenges faced by U.S. business 

due to Indian industrial policies that potentially discriminate against foreign investment and imports for the sake of supporting Indian domestic industries, as well as 

its uncertain legal and regulatory environment for foreign businesses. Some have 

compared India’s policies to China’s—and feel that these policies are removing opportunities for market access in this growing economy of 1.2 billion people. 

In fact, it seems as if every industry has been negatively impacted. Indian tariffs 

applied to agricultural imports are among the highest in the world, and are inconsistently and non-transparently applied. The U.S. biopharmaceutical industry has 

had several patents disregarded due to compulsory licensing and patent revocation 

and unreasonable patent denials. The U.S. technology industry is in danger of being 

shut out now due to India’s preferential market access policy-and so on. 

Obviously this is a real concern for U.S. businesses in India, but there is additional fear that many other emerging markets may see India as a model to emulate. 

Ms. Pritzker, if confirmed, what would be your plans over the next year to combat 

the increasing challenges we face in India? 

Answer. I share your concerns about any unfair trading practices that hurt U.S. 

businesses. I know that doing business in India can pose challenges for U.S. companies, from intellectual property issues to a variety of other trade barriers. I believe 

we should hold every country, including India, to their commitments. 

I know the Commerce Department has commercial service officers on the ground 

in India and around the world who are focused on helping U.S. businesses deal with 

these challenges. If confirmed, I will promote U.S. exports vigorously, and support 

our commercial diplomacy efforts across the globe to address unfair trading practices on behalf of U.S. firms and workers. Providing a level playing field for U.S. 

exporters requires tough trade enforcement, which will be a top priority for the 

Commerce Department if I am confirmed as Secretary. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. JOHN THUNE TO

PENNY PRITZER REGARDING HER QUESTIONNAIRE RESPONSES

Regarding Questions A.8, 9, and 11 (Positions Held/Employment History) 

In your responses to Questions A.8, 9, and 11, you list your position as chairman 

of TransUnion from 2004 to 2012. As you may know, TransUnion is one of a number 

of ‘‘data brokers’’ currently under investigation by Chairman Rockefeller. 

(1) Are you aware ofthis investigation, which was initiated in or around October 

2012, but seeks information dating back to 2009, which was during your tenure at TransUnion? If so, what has been your involvement, if any, with the 

investigation? 

(2) During your tenure at TransUnion, were you involved in decision making 

about the collection, use and protection of consumer information that is the 

subject of the Chairman’s investigation? 

(3) In light of your recent role as chairman of TransUnion, how would you respond to Chairman Rockefeller’s stated concerns that such companies ’’take 

advantage of the increasingly specific pieces of information about consumers 

that are now available’’ and that consumers are ‘‘largely unaware’’ of how companies like TransUnion use consumers’ ‘‘sensitive information for financial 

gain’’? 

90 

(4) The Committee recently held a hearing about accuracy in credit reports. 

What, if anything, did you do during your tenure at TransUnion to improve 

the accuracy of consumer records and ensure the timely correction of erroneous records? 

Answer. I served as the Chairman of the Board of TransUnion (‘‘TU’’)from 2004 

to February 2012, at which time the company was sold I was unaware, until recently, of and have no involvement with respect to the investigation by the Commerce Committee, which was initiated on or around October 10, 2012. 

The duty of the Board was, among other things, to help establish strategic direction for the company, toprovide oversight of the management’s operations and performance, and to approve material investments by the Company. The Board was 

also responsible for establishing the direction for management’s implementation of 

good practices and appropriate business policies. During my tenure, the Board directed management to be more responsive to consumers’ inquiries and complaints 

and to implementprocedures and systems to scifeguard financially sensitive information of consumers. I believe it is important that credit reporting agencies be as accurate as ispracticable with consumers’ records, to correct promptly any erroneous 

records, and to safeguard sensitive information. 

Regarding Question C.3 (Civil Litigation) 

In response to Question C.3 (in Exhibit C(3)), you list litigation against you and 

others arising from the FDIC’s closure of Superior Bank. In response to questions 

posed by the New York Times in 2008, you wrote: 

Business interests of my extended family, voluntarily, agreed to pay the 

F.D.I.C. $460 million to help defray the losses at Superior despite the fact we 

had no legal duty to do so. Even though I had no ownership interest (personally 

or through trusts) in Superior Bank, trusts for my benefit, together with trusts 

for the benefit of many other family members, participated and will participate 

in these payments. 

You also told the Times that a letter you wrote to Superior Bank employees in 

May 2001, assuring them about the bank, was written ‘‘during a period of time in 

which we were engaged in negotiations with banking regulators concerning the recapitalization of Superior.’’ No recapitalization plan was ever implemented, and it 

has been reported that Superior’s depositors incurred significant losses. 

(1) Please fully explain your role with respect to Superior Bank, including your 

service as Chairman of the Board. Also, please fully explain your role with respect to the bank’s failure, including your role with and the involvement of 

Coast-to-Coast Financial Corporation. 

(2) What, if any, lessons did you learn from your experience with Superior Bank 

that would inform your service as Secretary of Commerce? 

Answer. I became Chairman of Superior Bank (‘‘the Bank’’) in 1991, shortly after 

the Bank was acquired by Coast-to-Coast Financial Corporation (‘‘CCFC’’). I left 

thatposition in 1994, at which time the Bank was in good standing with its regulators. In my role as Chairman, I, with other members of the Board, oversaw the 

activities of management of the Bank, the hiring of senior levelpersonnel at the 

Bank, and the establishment of appropriate policies and procedures for the Bank’s 

operations. Because Superior was a successor to afailed savings and loan association, a substantial part of the Bank’s operations during my tenure as Chairman involved the management, disposition, and liquidation of loans (or interests in loans) 

previously made by thefailed institution. I spent a great deal of time during my tenure as Chairman of the Bank in the oversight of management’s resolutions of these 

loans. 

After I left the Superior Bank Board, I was a member of the Board of Directors 

of CCFC, which was the holding company and owner of the Bank. The holding company Board of Directors reviewedfinancial statements and results of operations of 

its subsidiaries, including the Bank. Operations and policies of Superior Bank were 

primarily the purview of the Bank’s management and the Bank’s separate Board. 

When it came to the attention of the Board of Directors of CCFC that Superior Bank 

was having difficulties with the regulators, I became actively involved in trying to 

work out a solution and compromise for all parties. My involvement included leading negotiations with representatives of the shareholders of CCFC, regulatory authorities, and other constituencies who were affected by the Bank’s situation in an 

effort to recapitalize Superior. These negotiations proved unsuccessful and unfortunately, Superior failed. Under an agreement with the Federal Deposit Insurance 

91 

Corporation, Superior’s receiver, business interests of my extended family agreed 

topay, voluntarily, $460 million to help defray the losses at Superior. 

This experience, as well as my over 27 years in business, have taught me the importance of governance, transparency, oversight, and tone at the top. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. JOHN THUNE TO

PENNY PRITZKER

Regulatory Uncertainty 

Question 1. As I travel around South Dakota and the country, one of the reasons 

employers say they are not hiring is the uncertainty caused by the Federal Government, from regulation of health care to such things as the EPA’s controversial 

greenhouse gas regulations. Would you agree that regulatory uncertainty is a contributing factor to high unemployment and economic stagnation, and if confirmed 

as Secretary of Commerce, how will you use that position to provide greater regulatory certainty for job creators? 

Answer. As someone who has spent more than 27 years in business, I understand 

the complexities and challenges of complying with government regulations. And I 

know that businesses need regulatory certainty. I believe it’s important to regularly 

scrutinize our regulatory framework, to make sure it reflects 21st century needs, 

and to make certain we find the right balance that establishes appropriate protections for the American people while enhancing American competitiveness. 

If confirmed, I will be a voice for business in the Cabinet on this effort and others. 

Question 2. If another agency is taking a regulatory action that is detrimental to 

job creation and competitiveness, will you raise objections to those actions within 

the Administration on behalf of job creators in the United States? 

Answer. The President has asked me to be a strong voice for business within his 

Administration, and, if confirmed, I look forward to making sure the business perspective is heard on a range of issues, including regulatory policy. I also have extensive experience making sure the business community’s perspective is heard in 

Washington, having served on the President’s Council on Jobs and Competitiveness 

and Economic Recovery Advisory Board. 

Spectrum (clearing the 1755–1780 MHz band for commercial use) 

Question 3. Ms. Pritzker, one of the President’s key initiatives is to make 500 

megahertz of Federal spectrum available for commercial use. While more spectrum 

is absolutely necessary, I believe that we need to focus on the quality of that spectrum, not just the quantity. In particular, the 1755–1780 megahertz band is one 

that many of my colleagues and I would like to see opened up for commercial use, 

but we have had a hard time getting all the Federal stakeholders to focus just on 

that specific band. As I noted in my opening statement, the Commerce Department 

is uniquely situated to play a role in this matter, because one of its agencies, the 

NTIA, is responsible for managing all Federal Government radio spectrum. 

Should you be confirmed, will you work with me to find ways, along with NTIA 

and other Federal agencies, to free up more Federal spectrum for commercial use 

in a timely manner, particularly with regard to the 1755–1780 megahertz band? 

Answer. I agree that we must continue our efforts to make more spectrum available to meet the growing demand. I understand that the 1755–1780 megahertz band 

is of particular interest to many stakeholders. At the same time, we need to be certain that Federal agency missions are not negatively impacted. 

Making more commercial spectrum available is a key to continuing the incredible 

pace of innovation and growth on the Internet and in wireless mobile devices. NTIA 

is working hard to meet that goal by working with the FCC and a wide range of 

other government agencies to find ways to move and consolidate their spectrum, so 

that more spectrum can be made available for wireless broadband. NTIA has already identified 115 megahertz of spectrum that can be made available for wireless 

broadband uses. NTIA is working with the FCC to identify the 500 megahertz the 

President has called for, and is well on the way to doing so. 

If I am confirmed as Secretary, I will work with NTIA as it strives to meet its 

commitment to find the spectrum that is needed to meet demand for wireless 

broadband. 

Tax Structure and Negative Impact on Industry 

Question 4. The U.S. must focus on being the best country in the world to locate 

manufacturing companies. As such, the U.S. must adopt a pro-manufacturing tax 

policy that does not discourage economic growth and destroy jobs. Yet, the U.S. currently has the second highest statutory corporate tax rate among the major OrganiVerDate Nov 24 2008 07:34 Apr 10, 2015 Jkt 075679 PO 00000 Frm 00095 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\94056.TXT JACKIE
92 

zation for Economic Cooperation and Development countries. Because of this, our 

country’s manufacturing sector is put at a major disadvantage in the global market. 

I’m concerned that, to date, the Administration has yet to put forth a serious tax 

reform package. If this country is to maintain a competitive advantage and to get 

our economy back on track, we must make tax reform priority. In your view, what 

impact has the corporate tax structure had on U.S. industry? 

Answer. I agree with the Administration’s conclusion, in its 2012 business tax reform framework, that the U.S. corporate tax system is uncompetitive and inefficient. 

It is too complicated and does not do enough to encourage domestic job creation and 

investment. 

I hope there is an opportunity to make progress on tax reform this year, and, if 

confirmed, I expect to be part of the conversation within the Administration as a 

key member of the President’s economic team. 

(a) To what extent is the current U.S. corporate tax structure discouraging manufacturing companies from locating or expanding their facilities on U.S. soil? 

Answer. The Administration’s framework report noted how tax expenditures in 

the business tax system have disparate impacts on different industries. The manufacturing industry pays an effective corporate tax rate that is higher than some industries, such as transportation, and lower than others, such as construction, according to the report. The overall effective Federal tax rate for U.S. corporations 

was 26 percent, the same as that for the manufacturing industry. That’s below the 

Federal statutory rate of 35 percent. The Administration’s framework would cut the 

effective corporate tax rate for manufacturing, an area of the economy that will be 

a major focus and high priority at the Commerce Department, if I am confirmed. 

(b) What suggestions do you have with respect to tax reform that would encourage 

the growth of manufacturing in the U.S.? 

Answer. I support the President’s call for comprehensive tax reform as part of a 

balanced plan to reduce the deficit, bolster economic growth, and increase job creation. 

The Administration’s framework includes efforts to effectively cut the top corporate tax rate on manufacturing income. I support the President’s approach on this 

issue. 

Forced Localization of Production 

Question 5. The Indian government is engaged in a pattern of discrimination 

against foreign products, including those from the United States, designed to benefit 

its domestic corporations. It is unfairly compelling domestic production of everything 

from information technology and clean energy equipment to medicines and medical 

devices, and creating barriers at the expense of American jobs and exports. This is 

no way for one of the world’s biggest economies to treat its second largest export 

trading partner. And there is reason to fear other countries may adopt similar tactics. 

If confirmed, what will you do as Secretary of Commerce to secure real and timely 

results for American manufacturers and to ensure India complies with its international obligations? 

Answer. I share your concerns about any unfair trading practices that hurt U.S. 

businesses. I know that doing business in India can pose challenges for U.S. companies, from compelling domestic production, intellectual property issues to a variety 

of trade barriers. I believe we should hold every country, including India, to their 

commitments. 

I know the Commerce Department has commercial service officers on the ground 

in India and around the world who are focused on helping U.S. businesses deal with 

these challenges. If confirmed, I will promote U.S. exports vigorously, and support 

our commercial diplomacy efforts across the globe to address unfair trading practices on behalf of U.S. firms and workers. Providing a level playing field for U.S. 

exporters requires tough trade enforcement, which will be a top priority for the 

Commerce Department if I am confirmed as Secretary. 

Satellites 

Question 6. Satellite programs of the National Oceanic and Atmospheric Administration comprise about one-fifth of the Department of Commerce’s total budget. Two 

of the largest programs are the polar-orbiting Joint Polar Satellite System (JPSS) 

and the Geostationary Operational Environmental Satellite (GOES) R-series. These 

are not only a significant and long-term financial commitment, but these satellites 

provide critical data to support our Nation’s weather forecasting capabilities. However, some satellite programs have been plagued by, or are at risk of, cost overruns 

and schedule delays, earning them the dubious distinction of being named one of 

the top five management challenges facing the Department in a recent Office of InVerDate Nov 24 2008 07:34 Apr 10, 2015 Jkt 075679 PO 00000 Frm 00096 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\94056.TXT JACKIE
93 

spector General (OIG) report (Report no. OIG–13–003, November 9, 2012). The report states, ‘‘preventing significant cost overruns and minimizing the impact of satellite coverage gaps will continue to require top-level management attention’’ (emphasis added). The Government Accountability Office (GAO), independent assessment groups, and Congress have expressed concern about the management of 

NOAA’s satellite programs and have offered recommendations for the future of these 

programs. 

How would you, if confirmed as the top official at the Department of Commerce, 

use your skills to responsibly shepherd these programs and protect the public investment in, and essential data from, NOAA satellites? 

Answer. As a citizen, I understand how essential accurate and timely weather 

forecasts are to protect life and property. As a businessperson, I understand that 

a successful business is based on reliable and timely information and technology. 

NOAA’s National Weather Service provides essential information for the protection 

of life and property as we have seen with recent severe weather. If confirmed, I will 

take very seriously my management role for all of the Department of Commerce’s 

programs. I am keenly aware of the importance of NOAA’s satellites and commit 

to bringing my management skills to the team which oversees the Department’s satellite programs. 

Timely communication with Congress 

Question 7. Questions for the record—like this one—are an important way for our 

Committee Members to more deeply understand the positions of the Departments 

and agencies over which we have jurisdiction. We hope that those Departments and 

agencies view the responses to those questions as an opportunity to further educate 

Members about their challenges and views. In March 2012, our Subcommittee on 

Oceans, Atmosphere, Fisheries, and Coast Guard held a hearing on the Fiscal Year 

2013 budget proposals for NOAA and the Coast Guard. Several Committee Members 

submitted written Questions for the Record to Dr. Jane Lubchenco, who was at that 

time the Under Secretary of Commerce for Oceans and Atmosphere. Over ten 

months later, in January 2013, the Committee closed the hearing record without 

ever having received responses from Dr. Lubchenco. Regrettably, this acknowledgement was printed in the hearing record: ‘‘Although Committee Members submitted 

written Questions for the Record to Dr. Jane Lubchenco following the March 7, 2012 

hearing, NOAA did not provide responses to the Committee before the hearing 

record was closed on January 25, 2013.’’ 

If you are confirmed to be Secretary of Commerce, will you ensure that communications between your Department and its agencies and our Committee and its 

Members are timely and accurate? 

Answer. If confirmed, I will make sure that that the Department has a collaborative and productive relationship with the Committee and its members, which 

means that the Department and each of its agencies must provide accurate and 

timely answers to the Committee’s questions. I understand that the Committee 

must be able to do its work in order for the Department to achieve its mission. 

National Weather Service 

Question 8. The National Academy of Public Administration recently released a 

report entitled, ‘‘Forecast for the Future: Assuring the Capacity of the National 

Weather Service.’’ This report examined the National Weather Service’s current operations and made concrete recommendations to move the Weather Service forward, 

including: improving external stakeholder engagement; assessing staff alignment; 

re-framing the relationship between management and labor; and streamlining research-to-operations and operations-to-research functions. At your nomination hearing, you recognized the importance of the National Weather Service, and said that 

‘‘making sure that our weather service is best-in-class’’ would be a high priority for 

you if confirmed as Secretary of Commerce. In particular, what role could you play, 

if confirmed, in supporting the National Weather Service as it adopts certain reforms? 

Answer. While I’m not familiar with the specifics of the National Academy of Public Administration report, I understand that a successful business must be nimble, 

efficient and adaptable to its customers’ needs. An agency like NOAA’s National 

Weather Service must possess the same traits, especially given the vital life and 

property protection role it serves. If confirmed, I can work with NOAA to identify 

potential future reforms, provide leadership and management oversight, and ensure 

that any potential changes allow NOAA to continue to provide, and improve where 

possible, the level of service for the American people. 

94 

NOAA leadership 

Question 9. The Office of Inspector General identified high turnover in leadership 

positions at the agency as one of the challenges to NOAA’s satellite programs. A 

number of key positions in the National Marine Fisheries Service and elsewhere in 

NOAA are currently filled by individuals in acting capacities. As you mentioned at 

your nomination hearing, ‘‘it’s important to have good expertise around me,’’ and I 

appreciate your commitment to ensure these positions are filled with the best people 

to carry out these important responsibilities. 

If confirmed, how will you work to ensure that these leadership transitions do not 

negatively impact the effectiveness of the agency? 

Answer. Leadership is critical to any organization, and I share your feeling that 

it’s important that the Department fill top vacancies at NOAA and other bureaus 

as quickly as possible—but that it do so deliberately, to make sure we make the 

right choices. If confirmed, I will make filling these vacancies a top priority. In the 

meantime, I am confident that current Department of Commerce leadership will 

continue to successfully fulfill the Department’s mission. 

Offshore Tax Avoidance 

Question 10. Ms. Pritzker, as we discussed during your courtesy visit with me and 

at your confirmation hearing, some have criticized the fact that you are a beneficiary of offshore tax avoidance schemes, via offshore family trusts, and have noted 

that it is hypocritical for the President to nominate cabinet members who have benefitted from offshore tax havens when he has criticized that practice for others. 

While you explained that you do not control these offshore trusts and have now 

asked the trustee(s) to ‘‘remove themselves and to appoint a U.S. trustee,’’ please 

respond to the following additional questions: 

(a) Were any of your trusts ever located at Ugland House in the Cayman Islands, 

which the President has described as ‘‘the largest tax scam in the world’’? 

Answer. No, not to my knowledge. 

(b) Your publicly filed financial disclosure form indicates that you collected nearly 

$54 million in consulting fees from CIBC Trust Company (Bahamas) Limited in 

2012. In our prior communications, you have indicated that this payment was for 

services that you rendered over a 10-year period as part of a restructuring of your 

family’s assets that concluded in December 2011. Can you confirm that this payment was a one-time payment for the aforementioned services, and not a payment 

received in lieu of a distribution from your family’s offshore trust(s)? 

Answer. Confirmed. 

(c) Can you confirm that you have paid U.S. taxes on the consulting fees you have 

received from CIBC Trust Company (Bahamas) Limited, as well as similar fees you 

were paid by other U.S.-based trusts as part of your family’s restructuring of assets? 

Answer. Confirmed. 

Failure of Superior Bank 

Question 11. Ms. Pritzker, during your courtesy visit with me and at your confirmation hearing we discussed the failure of Superior Bank in 2001, a bank that 

was one of the early leaders in subprime lending. While you discussed the role your 

family had in negotiating the subsequent settlement with the FDIC, you did not 

fully answer my question. As I mentioned at the hearing, according to a 2002 report 

issued by the FDIC’s Inspector General, concerns were raised by the Office of Thrift 

Supervision (OTS) about the bank’s mortgage banking practices as early as 1993, 

when you were still Chair of the bank’s Board. 

Were you aware of the concerns raised by the OTS in 1993 regarding banking 

practices at Superior while you were Chair of the Board? If so, did you take any 

action to address these concerns? 

Answer. I have no recollection of having been made aware in 1993 of the concerns 

raised by the OTS regarding banking practices at Superior. I would note that the 

2002 report by the Inspector General states: 

‘‘As early as 1993, OTS examiners reflected some concerns about the risks associated with residual assets, at the time totaling $18 million, or about 33 percent 

of tangible assets. Yet, as shown in Table 3, OTS did little to either curb growth 

or concentrations, which reached $977 million for over 345 percent of capital as 

reflected in the 2000 examination.’’ See: Page 19, Office of Inspector General Report ‘‘Material Loss Review of Superior Bank, FSB,’’ February 6, 2002 (‘‘OIG Report’’). 

Question 12. In addition, others have pointed out that you continued to serve as 

a board member for Superior Bank’s holding company, Coast-to-Coast Financial 

95 

(CCFC) until the bank’s failure. In your later role with CCFC, what knowledge did 

you have of subsequent concerns from the OTS? What action did you take as the 

holding company for the bank? 

Answer. I believe that it was sometime during 2000 that I became aware of the 

concerns of the OTS as to the valuations of Superior’s assets. I recall that the bank 

holding company board became actively involved in trying to assess the situation 

in the summer of 2000, and I was part of the team assembled by the owners of 

CCFC, which was involved in assessment of the issues and the attempt to craft solutions. 

Question 13. The 2002 report from the FDIC Inspector General also discussed Superior Bank’s sale of some subprime loans to CCFC at below market value, which 

CCFC very quickly sold for a significant profit of $20.2 million. The FDIC determined that this sale violated regulations that prohibited sales to affiliates and requirements for arm’s length transactions, and ordered the money to be returned to 

Superior Bank. While you were at CCFC, what was your role in the sale of these 

accounts, and in discussions with the FDIC about return of the money to Superior? 

Answer. I am unable to recall having any specific role as to the sale of such loans 

by Superior Bank to CCFC, but I was a member of the Board of Directors of CCFC. 

I would note that CCFC made a capital infusion in March 2001 to Superior by 

down-streaming CCFC’s beneficial interest in $81 million of residual assets according to the Office of Inspector General 2002 Report. See: OIG Report, Appendix 4. 

Question 14. Some uninsured depositors of Superior Bank claim that CCFC principals took out large loans from Superior that they had no intention of repaying, 

and that they drained Superior’s assets by directing Superior to pay CCFC $188 

million in dividends over the ten-year period from 1989 to 1999, a requirement that 

Superior was not able to withstand. You were a member of the Board of Directors 

of CCFC from 1994 until the failure of Superior Bank in 2001. Did you play any 

part, either as Chairman of Superior Bank, or in your role as a member of the 

Board of Directors of CCFC, or at any time in your association with Superior Bank, 

in securing payment of dividends to CCFC over the 1989–1999 period? 

Answer. I was Chairman and a member of the Board of Superior Bank from 

1991–1994. After 1994, I was a member of the Board of Directors of CCFC but was 

not the Chairman of the board nor a member of the board of the bank during the 

remainder of that period. From 1991 through 1999, Superior Bank received clean 

audits from its independent auditors, Ernst & Young, which firm also validated the 

valuations of Superior’s assets, and CAMELS Rating of 2/12222N in OTS exam completed 5/6/1991; FDIC Ratings of 3/32333 in exam completed 4/26/1991; FDIC Ratings of 3/32232 in exam completed 4/24/1992; CAMELS Rating of 2/22232N in OTS 

exam completed 8/28/1992; CAMELS Rating of 2/22221N in OTS exam completed 

8/12/1993; CAMELS Rating of 2/22222 in OTS exam completed 9/9/1994; CAMELS 

Rating of 2/22212 in OTS exam completed 10/31/1995; CAMELS Rating of 2/22211N 

in OTS exam completed 11/20/1996; CAMELS Rating of 1/211121 in OTS exam completed 12/51997; and a CAMELS Rating of 2/222121 in OTS exam completed 3/1/ 

1999. I do not have any specific recollections of dividends by Superior to CCFC during the period I was Chairman of the bank from 1991 until early 1994. After that 

period, any dividends would have been declared by the board of directors of the 

bank of which I was not a member. A loan was made by CCFC to UBH, Inc., an 

entity owned and controlled by interests of Mr. Alvin Dworman. I am unaware of 

any loan or distributions having been made by CCFC to interests affiliated with my 

extended family. 

Question 15. In your letter dated May 20, 2013, responding to my May 15, 2012 

correspondence regarding questions about your role in the failure of Superior Bank, 

you wrote: ‘‘When it came to the attention of the Board of Directors of CCFC that 

Superior Bank was having difficulties with the regulators, I became actively involved in trying to work out a solution and compromise for all parties. My involvement included leading negotiations with representatives of the shareholders of 

CCFC, regulatory authorities, and other constituencies who were affected by the 

Bank’s situation in an effort to recapitalize Superior. These negotiations proved unsuccessful and unfortunately, Superior failed.’’ However, you wrote a letter in May 

2001 to the management and employees of Superior Bank announcing that an 

agreement had been reached with the Office of Thrift Supervision for a $351 million 

plan to recapitalize Superior Bank. Ellen Seidman, the director of the Office of 

Thrift Supervision at the time of the failure of Superior Bank, said during a Senate 

Banking Committee hearing held on October 16, 2001, that ‘‘the people who owned 

96 

1 U.S. Senate Banking Committee Hearing on the Failure of Superior Bank, held on September 11, 2001, and October 16, 2001. Official Transcript, page 24. 

[Superior Bank], much to our surprise, walked away from it after having promised 

to put it back together again.’’ 1

Why did the owners of Superior Bank walk away from negotiations on a recapitalization plan to rescue the bank after having promised to put it back together again? 

(a) Did the owners of Superior Bank understand that by walking away from negotiations, some uninsured depositors might lose significant amounts of their savings? 

Answer. The owners of the holding company understood that by not reaching an 

agreement as to the terms of a recapitalization plan, it was highly probable OTS 

would appoint the FDIC as receiver for Superior, which could result in losses for 

uninsured depositors. 

(b) Was it your decision to withdraw the recapitalization plan? If not, what was 

your opinion with regard to going forward with the plan? 

Answer. I was never the sole decision-maker with respect to matters involving Superior Bank on behalf of the business interests of my extended family, which only 

owned 50 percent of the bank’s holding company. As we continued to assess the recapitalization plan and the terms of proposed agreements with OTS and other interested parties, we came to the conclusion that the plan under discussion would not 

succeed. We were unable to reach an agreement with the OTS and other interested 

parties as to a plan we thought would be successful. 

Question 16. In its own 2002 review of Superior’s collapse, the Government Accountability Office (GAO) found that ‘‘primary responsibility for the failure of Superior Bank reside[d] with its owners and managers,’’ although GAO also faulted regulators and the bank’s accounting firm. The FDIC’s Inspector General separately concluded that the ‘‘actions of the Board and executive management resulted in the 

transference of funds to holding companies, also owned by Superior’s owners, at the 

expense of the institution’s capital. This transference had the effect of unduly enriching those companies, and potentially their owners.’’ 

Ultimately, some of the bank’s uninsured depositors claim to have lost over 

$100,000 of their savings—including one who reportedly deposited her entire retirement account with Superior a month before it failed. 

While I appreciate that your family agreed to pay $460 million to the FDIC to 

defray the losses at Superior, underinsured depositors reportedly still lost approximately $10 million. 

(a) Did you or the other owners ever consider making whole the depositors who 

lost significant sums of money because of this risky venture in subprime lending? 

Answer. Under applicable Federal law, once an insured bank goes into receivership, the FDIC is vested with the sole and exclusive authority to resolve claims of 

all depositors of the failed institution. Further, the operations of the bank and the 

collection of its assets and settlement of its liabilities are within the sole management and purview of the FDIC. Business interests of my extended family negotiated 

and entered into an agreement with the FDIC which we thought, and presumably 

the FDIC believed, was in the interests of all concerned. We were hopeful that the 

FDIC, through its management of the receivership, would have been able to recover 

sufficient monies, including the more than $450 million we paid to the receivership, 

to make all depositors whole. Unfortunately, this was not the result achieved by the 

FDIC, although uninsured depositors received their insured amounts and 81 percent 

of their uninsured amounts, which is unusually high for such situations. 

(b) Is it correct that, while your family effectively owned a 50 percent stake in 

the bank, the other 50 percent owner did not contribute to the settlement with the 

FDIC? Do you know why this was the case? 

Answer. It is true that the Dworman interests, which owned the other 50 percent 

of the holding company, made no payments to the FDIC. I won’t speculate as to why 

they did not do so. 

Question 17. In your letter dated May 20, 2013, responding to my questions on 

your role in the failure of Superior Bank, you wrote: ‘‘This experience . . . [has] 

taught me the importance of governance, transparency, oversight, and tone at the 

top.’’ However, you did not elaborate. What specifically did this experience teach you 

about the importance of governance, transparency, and oversight, and what, if anything, would you have done differently? 

Answer. Hindsight is always conjectural. But, on reflection, as a younger career 

professional, I deferred to the judgment of my elders and placed too much faith in 

information that I received from the bank’s management, accountants, auditors, and 

97 

regulators. I have learned to ask tougher questions, to be more skeptical, and to insist upon more independent checks and balances. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. ROY BLUNT TO

PENNY PRITZKER

Question 1. For the past several years, the Congress has pressed the Administration to focus on a results-oriented strategy to address the problems that U.S. industry is facing by China’s lack of enforcement of intellectual property, including in the 

area of software. We have encouraged the setting of objective, measurable benchmarks like sales and a timeline to show success in reducing IP infringement. What 

is your view on establishing metrics? 

Answer. Hard sales data of U.S. industry products are a good way to determine 

whether Chinese companies are reducing their use of pirated or counterfeit goods. 

It’s my understanding, however, that these data largely derive from proprietary information that is in the hands of companies. Additionally, I know many industry 

sectors have estimates on piracy, counterfeit, or infringement rates; however, these 

rates may not translate easily into lost sales figures since other factors may also 

impact sales. In some cases, market access restrictions impede the sales of legitimate goods significantly and perhaps more than IP infringement. Relying on enforcement data has its risks, as well. Increased enforcement does not necessarily indicate that legitimate sales or the environment are improving. If confirmed, I will 

be happy to engage with industry to explore how we can use available data to assess 

Chinese commitments to a fair playing field for U.S. companies. 

Question 2. It appears that the Chinese Central government has made progress 

with their ‘‘Special Campaign’’ in terms of cleaning up the use of pirated products. 

However, there appears to still be a prevalence of IP infringement by State-owned, 

financially powerful and large enterprises, including those that are publicly-traded. 

Many of these actors engage in substantial commercial activity in China and are 

formidable in global markets. The standard practice for businesses and financial institutions is to implement annual, independent software verification. Third-party 

software verification might be a good way to move forward and remove some of the 

tensions that we have seen. Do you believe we should attempt to persuade China 

to establish a commonly-recognized mechanism of independent software verification? 

Answer. I am aware that in discussions with the Chinese government, the Department of Commerce has advocated for benchmarks on the sale of legitimate software 

to China that are commensurate with the sale of software to other countries with 

a similar GDP to China’s GDP. Unfortunately, sales of legitimate software to China 

fall far short compared to similar countries. 

I understand that the Department of Commerce has repeatedly pressed China to 

have its State-Owned Enterprises (SOEs) implement independent, third-party audits of software to verify that the software being used by the SOEs is legitimate. 

Such audits should be ongoing, not just a one-time event. The Department has also 

been encouraging all Chinese governmental institutions and private companies to 

implement independent third-party audits of software on an ongoing basis. 

In addition to more enforcement, pressing China to continue to make systemic improvements in its intellectual property system, including improving criminal intellectual property enforcement, will be a priority for me if I’m confirmed. If confirmed, 

I will also work to continue monitoring developments to ensure that improvements 

are durable and sustained. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. MARCO RUBIO TO

PENNY PRITZKER

Spectrum 

Question 1. Two years ago, the Government Accountability Office examined 

NTIA’s management of Federal spectrum. GAO found that: 

• NTIA’s efforts in spectrum management ‘‘have been limited’’; 

• ‘‘NTIA does not have specific requirements for agencies to justify their spectrum 

assignments or validate data used for these evaluations’’; 

• ‘‘NTIA has limited assurance that the data used to make spectrum management 

decisions are accurate’’; and 

• ‘‘NTIA has limited ability to monitor Federal spectrum use.’’ 

98 

These findings are concerning. NTIA is working to address these findings, but as 

the demand for spectrum increases, it is imperative that the Federal Government 

uses its spectrum efficiently. This requires an effective NTIA that is fulfilling its 

statutory responsibility to manage Federal spectrum. What will you do as Secretary 

to ensure that NTIA is meeting its responsibility? What will you do to ensure the 

GAO’s findings are addressed? 

Answer. As someone with more than 27 years of experience in the private sector, 

I understand accountability is important for successfully running an organization. 

If confirmed as Secretary, I will work with NTIA as it strives to meet its commitment to identify 500 megahertz of spectrum as called for by the President and its 

requirement to make sure that the government uses spectrum efficiently. 

Question 2. The proliferation of smart phones and tablets has created an ‘‘app’’ 

economy, but has also led to an explosion in the use of bandwidth for wireless services. 

• Do you believe that there is a spectrum crunch in the United States—meaning 

that consumer demand for wireless spectrum will soon outpace supply? 

• What new actions will the Department of Commerce take under your leadership 

to alleviate the spectrum crunch? 

Answer. I believe that we must continue our efforts to make more spectrum available for wireless broadband to meet the growing demand, which is well-documented, 

including in the President’s 2010 Memorandum. Making more spectrum available 

is a key to continuing the incredible pace of innovation and growth on the Internet 

and in wireless mobile devices. The President has set a bold goal of doubling the 

amount of spectrum that the government licenses for commercial uses. NTIA is 

working hard to meet that goal by working with the FCC and a wide range of other 

government agencies to find ways to move and consolidate their spectrum, so that 

more spectrum can be freed up to license for commercial uses. NTIA is working with 

the FCC to identify the 500 megahertz the President has called for, and is well on 

the way to doing so. Meeting the long term requirements will depend on 

repurposing of spectrum, sharing spectrum and technology improvements. 

Question 3. The Department of Commerce is responsible for managing the Federal 

Government’s use of spectrum. That responsibility extends to all Federal agencies. 

Yet, at times, it seems as though other Federal agencies set the Federal Government’s spectrum policy and NTIA simply rubber stamps what those agencies want. 

Will this trend continue under your leadership, or will you reassert the Department 

of Commerce’s statutory responsibility to manage the Federal Government’s use of 

spectrum? 

Answer. As someone with more than 27 years of experience in the private sector, 

I understand accountability is important for successfully running an organization. 

If confirmed as Secretary, I will work with NTIA as it strives to meet its commitment to effectively manage Federal spectrum use so that commercial and government entities have sufficient spectrum to meet their needs. 

Question 4. I am concerned that the estimates for relocating Federal Government 

systems may not be realistic and can unnecessarily impede movement of Federal 

systems. For example, in the past the Department of Defense estimated it would 

cost $4.6 billion to clear the 1755–1850 MHz band. Now, NTIA estimates the cost 

will be $18 billion. What steps will you take to get an accurate estimate of these 

costs? 

Answer. I appreciate your concern about the accuracy of agency estimates for the 

cost of relocation of their systems from the 1755–1850 MHz band and will work with 

NTIA to ensure that agencies utilize the best practices and most accurate approaches to relocation cost estimates. I understand that the Commerce Department 

is in a unique position of having both technical and economic expertise in a way 

that other agencies do not have, but, as plans for relocation and sharing change, 

the estimates will vary. In fact, Government Accountability Office (GAO) officials recently testified that agency estimates of relocation costs for relocation to another 

band were lower than the actual costs. I know that NTIA is working closely with 

the Commerce Spectrum Management Advisory Committee (CSMAC) comprised of 

commercial and government stakeholders to look closely at this band to make this 

spectrum available as rapidly and efficiently as possible. If confirmed, I will continue to work with NTIA as is strives to fulfill the President’s goal of making an 

additional 500 MHz of spectrum available for wireless broadband. 

As reported by NTIA in its March 2012 report, ‘‘An Assessment of the Viability 

of Accommodating Wireless Broadband in the 1755–1850 MHz Band,’’ this band includes the operations of twenty Federal agencies, including the Department of Defense. In its report, NTIA estimated that relocating all twenty agencies’ systems 

99 

from the band would cost approximately $18 billion; of that amount, approximately 

$13 billion was attributed to relocating military systems. The report relied upon current estimates from the Federal agencies that use the 1755–1850 MHZ band. I understand the $4.6 billion DOD figure was their estimate from 2001. 

Fisheries 

Question 5. If confirmed, you will Chair the Gulf Coast Ecosystem Restoration 

Council. Can I get your commitment that you will work with the State of Florida 

to ensure the fullest and quickest recovery of our resources and for our state 

Answer. If confirmed, as Chair of the Gulf Coast Ecosystem Restoration Council, 

I will work with all of the Gulf States, including the State of Florida, for a swift 

recovery. 

Question 6. What is your short-term and long-term vision for fisheries management in the United States? 

Answer. If confirmed, I will work with Congress, NOAA, the fishing industry and 

other stakeholders towards healthy fish stocks that can support healthy fishing industries around the country that drive coastal economies. I also understand that the 

law guiding Federal fisheries management is up for reauthorization, and I look forward to working with Congress as a bill is developed and debated. 

Question 7. As you may know, we are having significant issues with the Federal 

management of our red snapper fishery in the Gulf of Mexico. What is your plan 

for this specific fishery? 

Answer. I believe that good management decisions are based on the best available 

information. In the case of fisheries management, I believe that the best available 

science, strong communication and collaboration will help all parties navigate the 

complexities associated with maintaining healthy fish stocks and fisheries. I’m not 

familiar with the specifics of the red snapper fishery, but I understand its importance, especially to the recreational fishing industry in your region. If confirmed, I 

look forward to learning about this fishery’s challenges and speaking with you further about its management. 

Question 8. Recently, NOAA listed several coral species under the Endangered 

Species Act. I have grave concerns over the implications of this listing. Can you 

commit to work with my office as you continue to review and potentially implement 

this listing? 

Answer. If confirmed, I commit to working with your office on all issues important 

to you and the State of Florida. 

Education/Skills Gap 

Question 9. Millions of Americans do not have the skills necessary for today’s 21st 

century economy, and our Nation’s skills gap is a fundamental obstacle to economic 

progress. How can the business community help to address the skills gap, and what 

role can you play as Commerce Secretary? 

Answer. I have spent significant time focused on the skills gap in our country, 

and agree that it is one of our most pressing economic challenges. I helped launch 

Skills for America’s Future, an initiative that promotes partnerships between employers and community colleges to address the skills mismatch. 

I look forward, if confirmed as Commerce Secretary, to continuing to work with 

the business community and other stakeholders on addressing the skills gap. In 

order for businesses to continue to thrive in this country, they need a well trained 

and talented workforce. Likewise, it’s vitally important that Americans have the resources and skills needed to benefit from the economic opportunities of the future. 

The Commerce Department can play an important role in making sure business 

workforce needs are well understood by policymakers, and that the business community has a strong voice in the Administration. 

Census 

Question 10. One endeavor that you will oversee will be the planning for the 2020 

Census. The costs of this constitutionally-mandated activity have continued to increase. One potential area for cost savings would seem to be mapping. The Census 

Bureau’s maintains its own mapping function, but today, there is a very robust private sector mapping industry. In fact, many other government agencies realize the 

value of commercially available maps, as they choose to utilize the maps available 

through the private sector rather than use the maps available from the Census Bureau. Given the budgetary pressures that the Department is under, would you agree 

that the Census Bureau should look to buy at lower cost that which it creates for 

itself at higher cost? Will you commit to examining cost savings opportunities as the 

Department prepares for the 2020 census? 

100 

Answer. As a business leader with 27 years of business experience, I believe I 

have a solid foundation to manage the Department of Commerce. If confirmed, I will 

be deeply committed to acting as a responsible steward of taxpayer dollars and plan 

on engaging with employees and stakeholders on ways to achieve greater efficiency 

within our Department. 

Like you, I believe that controlling cost for the 2020 Census is essential. I know 

the Administration is committed to conducting the 2020 Census at a lower cost per 

household than the 2010 Census while maintaining high-quality results. 

I understand the Census Bureau has embarked on a research and testing program focused on containing costs by making it easier for people to respond to the 

Census and through other reforms. 

If confirmed, I will look into the specific issues you have raised further. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. KELLY AYOTTE TO

PENNY PRITZKER

Fisheries 

Question 1. I have been very concerned that NOAA is not doing everything it can 

to make sure we maintain fishing jobs in the Northeast. We are facing unprecedented cuts to critical fish stocks and our small boat industry in New Hampshire 

is being hit the hardest. Currently, fishing year 2013 catch limits for Gulf of Maine 

(GOM) cod are 78 percent lower than they were in 2012. This is unworkable for New 

Hampshire and warrants further review in an effort to find a compromise that will 

allow our fishing industry to survive. 

As you know, NOAA is charged with sustaining both fish stocks and fishing communities. Fishermen depend on healthy fish stocks and these interests should not 

be conflicting. In January, I wrote twice to Acting Secretary Blank urging approval 

of the New England Fishery Management Council’s request for interim measures for 

the 2013 fishing year, but to date NOAA has opposed this compromise. 

Fishing is an historic and honorable trade that has been in many New Hampshire 

families for generations and sustains the livelihood of fishing communities across 

New England. What actions are you prepared to take in 2013 to sustain our fishing 

jobs in New Hampshire? Would you be willing to reconsider interim measures for 

the 2013 fishing year? 

Answer. I understand how culturally, personally, and economically important fishing is to New England fishermen and communities, and I understand that these 

years have been difficult years for the industry in your region. If confirmed, I look 

forward to working with you and NOAA to identify ways to help your fishing communities through this difficult time. 

Spectrum 

Question 2. The Administration has stated a goal of freeing up 500 MHz of spectrum within 10 years. To do this, government spectrum will have to be repurposed 

for commercial usage. I have been working closely with Members of this Committee, 

key House Commerce and Intelligence Committee colleagues, the FCC and the Pentagon CIO to identify which spectrum bands can be repurposed for commercial use 

and how best to do it. This is a difficult balancing act. What steps do you plan on 

taking to achieve this goal and what role do you plan on playing in working with 

the defense community, the FCC, Members of Congress and industry to help the 

supply for spectrum meet the rapidly increasing demand? 

Answer. I believe your question speaks to an important challenge, which is meeting the demand for spectrum for wireless broadband while ensuring that our Federal agencies can continue to meet their mandated missions. NTIA is working hard 

to meet the President’s directive to make 500 megahertz available for wireless 

broadband use and has already identified 115 megahertz of spectrum that can be 

made available for that purpose. It has brought industry and government together 

to review the 1755–1850 MHz band and initiated efforts on another 195 megahertz 

for possible use for unlicensed devices like WiFi. NTIA is working with the FCC to 

identify the 500 megahertz the President has called for, and is well on the way to 

doing so. If I am confirmed as Secretary, I will work closely with NTIA to meet the 

demand for spectrum for wireless broadband while ensuring that Federal agencies 

can continue to meet their mandated mission. 

Census 

Question 3. Over the past decade, private sector mapping industry has grown into 

a worldwide industry, delivering products and services that we as consumers use 

every day. The Census Bureau budgets hundreds of millions in taxpayer dollars to 

101 

collect data used for the census. Some argue that this is duplicative to the work 

being done using essentially the same geographic data by private mapping companies. 

In a 2012 Senate HSGAC hearing, former Census Director Robert Groves said 

that the Census Bureau was in some ways working with the private sector and that 

he hoped it would continue. Further, he said, ‘‘Our budget pressures are such that 

we are reexamining everything we do and that will continue I suspect for some 

years. That’s a healthy environment to consider new arrangements.’’ 

Considering the Census Bureau is using scarce tax dollars, and private sector investments represent jobs in the U.S., should the Census Bureau be seeking to save 

money by utilizing these cutting edge commercially-available maps? What are the 

pitfalls with this approach? 

Answer. It is my understanding that the Census Bureau has begun working with 

private sector mapping sources. If confirmed, I will be happy to look into this issue 

further. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. DEAN HELLER TO

PENNY PRITZKER

Question 1. Ms. Pritzker, this administration has not always been seen as the 

most outgoing towards the business community. In Nevada, we are still digging our 

way out of the recession from 2008. We have led the Nation in unemployment, we 

have seen over 400,000 foreclosure filings and our tourism industry has taken a significant hit. There are signs of recovery, but much more needs to be done, how 

would you as Commerce Secretary utilize your background to ensure that we move 

in the right direction to improve Nevada’s economy, especially in dealing with the 

business community? 

Answer. If confirmed, my priority will be working with the business community 

to accelerate our economic recovery, in Nevada and across the country. We can always do more to help businesses create jobs here at home, and to make the United 

States a place companies want to do business. 

The President has asked me to be a bridge between his Administration and the 

business community, and that’s a role I look forward to playing on his economic 

team. If confirmed, I expect to build on my lifetime of business experience to making 

sure the business community’s perspective is heard in Washington. 

I also understand the importance of the travel and tourism industry to Nevada— 

and the entire U.S. economy—and I believe there is a tremendous opportunity to 

create jobs in that important sector of our economy. 

I support the Administration’s travel and tourism strategy, and if confirmed, look 

forward to leveraging my more than 27 years of experience in the hospitality industry to promote America as the top tourist destination in the world. 

Question 2. Ms. Pritzker, spectrum is an important tool towards continued economic growth. The technology and communications industry was the only area of 

growth after 2008. Ensuring that we continue to meet the needs of consumers who 

are using more wireless bandwidth is an important goal. One issue is clearing spectrum for government use, including spectrum used by DOD. What role if any are 

you planning on playing to encourage more government agencies move off of spectrum they may not be using so that it can be taken to market through an auction? 

Answer. Making more spectrum available for wireless broadband is a key to continuing the incredible pace of innovation and growth on the Internet and in wireless 

mobile devices. It is vital to promoting economic growth. NTIA is working hard to 

meet that goal by working with the FCC and a wide range of other government 

agencies to find ways to move and share their spectrum, so that more spectrum can 

be made available for wireless broadband. Thus far, NTIA has identified 115 megahertz of spectrum that can be made available for wireless broadband uses. It has 

brought industry and government together to review the 1755–1850 MHz band and 

initiated efforts on another 195 megahertz for possible use for unlicensed devices 

like WiFi. NTIA is working with the FCC to identify the 500 megahertz the President has called for, and is well on the way to doing so. 

If I am confirmed as Secretary, I will work closely with NTIA as it strives to meet 

the demand for spectrum for wireless broadband while ensuring that our Federal 

agencies can continue to meet their mandated missions. 

Question 3. While, it is not under this Committee’s jurisdiction, I would like to 

discuss patent reform. Patent infringement litigation is impacting innovation and 

subsequently the speed in which new technologies are reaching the customers. Do 

you have any plans to address this issue? Do you have any recommendations or insight for ensuring that the true owners of patents are protected from patent trolls? 

102 

Answer. Many of the changes from the America Invents Act, signed in 2011, only 

went into effect earlier this year, so it is early to have a strong opinion on the impact of those changes to existing practice. However, I know that President Obama 

has raised concerns about the increasing amount of litigation around software patents in particular. 

I understand that the U.S. Patent and Trademark Office (PTO) continues to engage the patent community on ways to improve patent examination. Earlier this 

year, PTO began a series of ‘‘Software Patent Roundtables’’ to gather ideas related 

to patent examination and patent quality and to build solutions. 

If confirmed as Secretary of Commerce, I pledge to work with the Congress and 

the patent community to find solutions to these important problems. 

Question 4. How do you envision working with the Census Bureau, especially with 

respect to implementing an accurate, cost efficient Census 2020? 

Answer. As a business leader with 27 years of business experience, I believe I 

have a solid foundation to manage the Department of Commerce. If confirmed, I will 

be deeply committed to acting as a responsible steward of taxpayer dollars and plan 

on engaging with employees and stakeholders on ways to achieve greater efficiency 

within our Department. 

An important part of preparing for an accurate, cost efficient 2020 Census is encouraging the Census Bureau to research and test new designs today in order to 

simultaneously reach our growing, increasingly diverse, and often hard-to-reach 

populations and contain costs. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. DAN COATS TO

PENNY PRITZKER

Question 1. A number of media outlets have characterized your appointment as 

an effort to ‘‘smooth ties between the Administration and the business community.’’ 

Do you think a divide between the Administration and the business community exists? If so, why? 

Answer. The President has asked me to be a bridge between his Administration 

and the business community, and that is a role I look forward to playing on his economic team. There is always room for improvement in the relationship between the 

Federal Government and the business community. 

Having served on the President’s Council on Jobs and Competitiveness and Economic Recovery Advisory Board, I intend to be a strong voice for businesses of all 

sizes within the Administration, and I bring a lifetime of business experience to this 

role. In general, I believe it is important that the business community and the Federal Government have good, open lines of communication—and I know the President 

believes that, too. 

Question 2. Indiana is a manufacturing state, and Hoosiers across our state depend on a level playing field in order to compete in the global marketplace. The Department of Commerce has responsibility for ensuring that this playing field is level, 

especially in the areas of antidumping and countervailing duties, and Hoosiers are 

looking to you to be a strong advocate for fairness and in favor of the laws. 

A strong manufacturing industry is critical to job growth and the long term prosperity of Indiana and the United States. How do you plan to ensure that a level 

playing field exists? 

Answer. If confirmed, I will be committed to tough trade enforcement and 

strengthening the U.S. manufacturing base to create jobs and economic growth in 

the United States. If confirmed, I will make enforcing our trade laws and agreements a top priority. American companies and American workers are the best in the 

world. U.S. firms and workers can compete and win in the global marketplace when 

we have a level playing field. As you noted, countervailing duty and anti-dumping 

laws provide us with important and transparent mechanisms to address unfair and 

market distorting trade practices. Our trade remedy laws give us the levers we need 

to protect our domestic industry from these practices. I can assure you that, if I am 

confirmed as Secretary, the Commerce Department will vigorously enforce our trade 

laws, including our antidumping and countervailing duty laws that address unfair 

dumping and subsidies. 

Question 3. As you may know, the Department of Commerce used a methodology 

commonly known as ‘‘zeroing’’ to calculate dumping margins. The World Trade Organization (WTO) has held, despite strong objections from both the Bush and 

Obama Administrations, that zeroing generally violates our WTO obligations. Can 

you share what your views are on negotiating a solution to this issue and restoring 

our right to use zeroing? 

103 

Answer. I understand that this is a very important issue, and that Commerce believes that the WTO Appellate Body went beyond its mandate in creating new obligations that do not appear in the text of the WTO Antidumping Agreement. It is 

also my understanding that Commerce has consistently signaled that its implementation of the various WTO Appellate Body decisions on ‘‘zeroing’’ were done out of 

recognition and respect for our international commitments, despite the view that the 

WTO Appellate Body overstepped its authority. I understand the United States has 

consistently flagged its intention to continue to pursue this issue. The United States 

is of the view that prior international agreements permitted zeroing, and has signaled its intent to work hard to reaffirm the ability to use this practice through the 

negotiations. I assure you that, if confirmed, I will review all of the options for raising this issue with our trading partners at the WTO. 

Question 4. As you know, the President thinks the department is unresponsive to 

the needs of business, has a number of duplicative functions, and is unnecessarily 

complex. In fact he proposed a massive reorganization of the department in 2012. 

This waste in the department as identified by the President combined with the fact 

that we’re now in sequestration should offer you some easy opportunities to find 

savings at the department. As a successful businesswoman I can’t imagine you 

would take on the responsibility of leading an organization like the Department of 

Commerce without doing substantial due-diligence into the challenges the organization faces. 

As you’ve gone through and reviewed the department’s operations, what areas 

have you identified early on for reorganization, consolidation, and elimination in 

order to provide savings to the taxpayer? 

Answer. If confirmed, I will be deeply committed to acting as a responsible steward of taxpayer dollars. The President has made it very clear that he wants his cabinet to eliminate wasteful spending in every agency and department, and I share his 

goal. 

With respect to the President’s reorganization proposal, I support the President’s 

request for consolidated authority. Until Congress grants the President that authority, I am eager and committed to leading the Commerce Department as it is currently configured. Should I be confirmed, I will look for every opportunity to achieve 

greater efficiency through the reduction of duplicative efforts within the Department. 

From my conversations with Dr. Blank, I know that the Department has made 

excellent strides in reducing administrative costs and travel and conference spending. If confirmed, I will continue to focus on efficiently using the taxpayers’ dollars 

by engaging with employees and stakeholders on ways to achieve greater efficiency. 

Æ