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[House Report 113-575]
[From the U.S. Government Publishing Office]

113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     113-575

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ENHANCE LABELING, ACCESSING, AND BRANDING OF ELECTRONIC LICENSES ACT OF 
                                  2014

                                _______
                                

 September 8, 2014.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Upton, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5161]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5161) to promote the non-exclusive use of 
electronic labeling for devices licensed by the Federal 
Communications Commission, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Committee Consideration..........................................     2
Committee Votes..................................................     2
Committee Oversight Findings.....................................     2
Statement of General Performance Goals and Objectives............     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     3
Committee Cost Estimate..........................................     3
Congressional Budget Office Estimate.............................     3
Federal Mandates Statement.......................................     4
Duplication of Federal Programs..................................     4
Disclosure of Directed Rule Makings..............................     4
Advisory Committee Statement.....................................     4
Applicability to Legislative Branch..............................     4
Section-by-Section Analysis of the Legislation...................     4
Changes in Existing Law Made by the Bill, as Reported............     5

                          Purpose and Summary

    H.R. 5161, the ``Enhance Labeling, Accessing, and Branding 
of Electronic Licenses Act of 2014,'' authorizes the Federal 
Communications Commission (FCC or Commission) to promulgate 
regulations to allow manufacturers of devices with an 
integrated display to use electronic labeling for the equipment 
in place of affixing physical labels to the equipment.

                  Background and Need for Legislation

    One of the FCC's duties is the certification and labeling 
of radiofrequency devices, verifying compliance with the 
Commission's interference rules. Current rules require a 
physical label on the device, detailing the identification of 
the device as authorized for use in the United States. The 
specific requirements for labeling vary depending on the type 
of device and its equipment authorization process. As these 
devices become smaller in size, it is increasingly difficult 
for manufacturers to comply with the physical labeling 
requirements.
    The E-LABEL Act allows manufacturers to ``digitally label'' 
devices with a screen, such as a smartphone. The device would 
comply with labeling requirements by displaying a digital label 
on the screen of the device. The digital label still would 
contain all relevant certification information, but would be 
displayed and easily accessed on the digital screen.
    Electronic labeling has potential benefits for consumers 
and manufacturers alike, as e-labeling creates flexibility for 
manufacturers, resulting in greater aesthetic and design 
innovation. The lack of a physical label also may reduce the 
cost of the labeling.
    Authorizing the FCC to permit electronic labeling is a step 
towards modernizing the laws that regulate communications and 
technology equipment, and will help to streamline the approval 
processes for bringing innovative devices to American 
consumers.

                        Committee Consideration

    On July 24, 2014, the Subcommittee on Communications and 
Technology held a legislative hearing on H.R. 5161. Witnesses 
included one of the bill's sponsors, Representative Robert E. 
Latta, and Harold Feld, Senior Vice President, Public 
Knowledge.
    On July 29 and 30, 2014, the Committee on Energy and 
Commerce met in open markup session, to consider H.R. 5161. 
H.R. 5161 was ordered favorably reported to the House, by voice 
vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in connection with ordering 
H.R. 5161 reported. A motion by Mr. Upton to order H.R. 5161 
reported to the House, as amended, was agreed to by a voice 
vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held hearings and made 
findings that are reflected in this report.

         Statement of General Performance Goals and Objectives

    The goal and objective of H.R. 5161, the ``E-LABEL Act,'' 
is to promote the use of electronic labeling for devices 
licensed by the FCC.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
5161 would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    In compliance with clause 9(e), 9(f), and 9(g) of rule XXI 
of the Rules of the House of Representatives, the Committee 
finds that H.R. 5161 contains no earmarks, limited tax 
benefits, or limited tariff benefits.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 25, 2014.
Hon. Fred Upton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5161, the Enhance 
Labeling, Accessing, and Branding of Electronic Licenses Act of 
2014.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 5161--Enhance Labeling, Accessing, and Branding of Electronic 
        Licenses Act of 2014

    CBO estimates that implementing H.R. 5161 would have a 
negligible effect on net discretionary costs over the 2015-2019 
period. Enacting H.R. 5161 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    H.R. 5161 would direct the Federal Communications 
Commission (FCC) to allow manufacturers of electronic devices 
with a screen to display information required by the agency 
digitally on the screen rather than on a label affixed to the 
device. On July 10, 2014, the FCC issued guidance that 
describes how devices with integrated displays can present 
label information electronically.
    Based on information from the FCC, CBO expects that any 
additional actions that agency would take to comply with the 
bill's requirements would not have a significant effect on the 
agency's workload, and thus, its spending. In addition, the FCC 
is authorized to collect fees sufficient to cover its annual 
appropriation; therefore, CBO estimates that implementing H.R. 
5161 would have a negligible effect on net discretionary costs, 
assuming appropriation action consistent with that authority.
    H.R. 5161 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Susan Willie. 
The estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                    Duplication of Federal Programs

    No provision of H.R. 5161 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting H.R. 5161 
specifically directs to be completed one rule making within the 
meaning of 5 U.S.C. 551.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    Section 1 provides the short title of the ``Enhance 
Labeling, Accessing, and Branding of Electronic Licenses Act of 
2014,'' or the ``E-LABEL Act.''

Section 2. Findings

    Section 2 details the findings, including the history of 
FCC device labeling and the benefits of electronic labeling.

Section 3. Authorization for Federal Communications Commission to allow 
        electronic labeling

    Section 3 amends Title VII of the Communications Act of 
1934 by adding new definitions for ``electronic labeling'' and 
``radiofrequency device with display.'' Section 3 also requires 
the FCC to complete a rulemaking to allow electronic labeling 
of such devices within 9 months of the enactment of the 
legislation.

Section 4. Savings clause

    Section 4 clarifies that the legislation does not affect 
the authority of the FCC under section 302 of the 
Communications Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

COMMUNICATIONS ACT OF 1934

           *       *       *       *       *       *       *

TITLE VII--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *

SEC. 720. OPTIONAL ELECTRONIC LABELING OF COMMUNICATIONS EQUIPMENT.

  (a) Definitions.--In this section--
          (1) the term ``electronic labeling'' means displaying 
        required labeling and regulatory information 
        electronically; and
          (2) the term ``radiofrequency device with display'' 
        means any equipment or device that--
                  (A) is required under regulations of the 
                Commission to be authorized by the Commission 
                before the equipment or device may be marketed 
                or sold within the United States; and
                  (B) has the capability to digitally display 
                required labeling and regulatory information.
  (b) Requirement To Promulgate Regulations for Electronic 
Labeling.--Not later than 9 months after the date of enactment 
of the Enhance Labeling, Accessing, and Branding of Electronic 
Licenses Act of 2014, the Commission shall promulgate 
regulations or take other appropriate action, as necessary, to 
allow manufacturers of radiofrequency devices with display the 
option to use electronic labeling for the equipment in place of 
affixing physical labels to the equipment.

           *       *       *       *       *       *       *

                                  
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