89–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 115–1003 

STATE OF MODERN APPLICATION, RESEARCH, AND 

TRENDS OF IOT ACT 

NOVEMBER 2, 2018.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. WALDEN, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 6032] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 6032) to direct the Secretary of Commerce to conduct 

a study and submit to Congress a report on the state of the internet-connected devices industry in the United States, having considered the same, report favorably thereon without amendment and 

recommend that the bill do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 2 

Background and Need for Legislation .................................................................... 2 

Committee Action .................................................................................................... 3 

Committee Votes ...................................................................................................... 3 

Oversight Findings and Recommendations ........................................................... 4 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 4 

Congressional Budget Office Estimate ................................................................... 4 

Federal Mandates Statement ................................................................................. 5 

Statement of General Performance Goals and Objectives .................................... 5 

Duplication of Federal Programs ............................................................................ 5 

Committee Cost Estimate ....................................................................................... 5 

Earmark, Limited Tax Benefits, and Limited Tariff Benefits ............................. 5 

Disclosure of Directed Rule Makings ..................................................................... 5 

Advisory Committee Statement .............................................................................. 5 

Applicability to Legislative Branch ........................................................................ 6 

Section-by-Section Analysis of the Legislation ...................................................... 6 

Changes in Existing Law Made by the Bill, as Reported ..................................... 6 


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1https://www.mercatus.org/publication/projecting-growth-and-economic-impact-internet-things 

2http://www.businessinsider.com/wearable-technology-iot-devices-2016-8 

PURPOSE AND SUMMARY

The State of Modern Application, Research, and Trends of IoT 

Act (SMART IoT Act) directs the Secretary of Commerce to establish a compendium of information regarding the Internet of Things 

(IoT) ecosystem. The purpose of the SMART IoT Act is for the Secretary of Commerce (Secretary) to create a first-of-its-kind compendium on both private industry and Federal government activities 

with respect to IoT efforts. 

With respect to the private industry, the Secretary is to identify 

which industry sectors develop IoT devices, both consumer and industrial, and which industry-based bodies have developed or are 

developing standards, as well as identifying those standards. With 

respect to the Federal government, the Secretary is to identify 

which agencies have jurisdiction over IoT, current interagency activities on IoT issues, and what Federal regulations, guidelines, 

standards, and other policies exist. 

The report will advance the development and deployment of IoT 

based solutions by providing industry-based standards and government resources related to IoT in a single location. Consolidating 

this information should help identify whether any current Federal 

activity is inconsistent, duplicative, or if there are gaps in needed 

Federal activity. Identifying this information is intended to help 

advance interagency collaboration and provide information regarding industry-based developed or developing standards. 

BACKGROUND AND NEED FOR LEGISLATION

IoT refers to a growing network of connected devices equipped 

with microchips, sensors, and wireless communication capabilities. 

These smart devices connect through a network to the cloud or a 

datacenter to share, exchange, and analyze data to gather insights 

used to solve problems or enable new capabilities. IoT devices are 

used to optimize everything from home appliances to automobiles 

and manufacturing to community services. IoT devices offer benefits to businesses, consumers, and society. For example, advancements in vehicle technology, such as the development and deployment of self-driving cars, have the potential to improve roadway 

safety and save thousands annually. Communities are integrating 

technology into their infrastructure for a variety of purposes, including to reduce overall traffic congestion and to improve waste 

management services.1

Consumer applications, such as wearable technology, in-home 

smart speakers, and smart appliances, also offer potential benefits 

directly to consumers. Increasingly, consumers are turning to wearable technology, as this market is expected to reach 162.9 million 

units by 2020.2 Business IoT applications, such as smart manufacturing, are already improving efficiency and productivity of operations, which can ultimately reduce costs to end users. Smart manufacturing uses real-time, accurate information to allow companies 

to improve workforce management, seek new business opportunities, and help drive out costs of inefficiency. As a result, it is proVerDate Sep 11 2014 02:25 Nov 06, 2018 Jkt 089006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR1003.XXX HR1003

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3http://www.businessinsider.com/internet-of-things-in-manufacturing-2016-10 

4https://www.mercatus.org/publication/projecting-growth-and-economic-impact-internet-things 

5https://www.forbes.com/sites/louiscolumbus/2016/11/27/roundup-of-internet-of-things-forecasts-and-market-estimates-2016/#205c3fa4292d 6 Id. 

7https://www.gao.gov/assets/690/686106.pdf 

jected that the installed base of manufacturing IoT devices will increase to 923 million by 2020.3

IoT is revolutionizing a variety of industries and having a substantial effect on major U.S. economic sectors. By 2025, IoT is projected to create $1.1 trillion to $2.5 trillion in value annually in the 

health sector; $.9 trillion to $2.3 trillion in value annually in manufacturing; and $100 billion to $300 billion in value annually in 

urban infrastructure.4 Analysts predict that by 2020, annual revenues for IoT vendors selling hardware, software, and other IoT solutions may exceed $470 billion 5 and that by 2025, the IoT market 

will grow from an installed base of 15.4 billion devices in 2015 to 

75.4 billion.6 This market is projected to create 4.5 million developer jobs by 2020. 

IoT cuts across many industry sectors and multiple Federal agency jurisdictions. In fact, many Federal agencies are developing and 

distributing IoT-related guidelines and making policy recommendations.7 Currently, many of the efforts and information that exist 

about the IoT ecosystem are siloed, whether it be industry-based 

best practices and standards or Federal action. No single-source 

compilation of this information exists, and through meetings with 

stakeholders and hearings on this legislation, it became clear that 

such a compendium, as created by the SMART IoT Act, will help 

advance IoT development and deployment of IoT-based solutions. 

COMMITTEE ACTION

On May 22, 2018, the Subcommittee on Digital Commerce and 

Consumer Protection held a hearing on a discussion draft entitled 

‘‘State of Modern Application, Research, and Trends of IoT Act’’ or 

‘‘SMART IoT Act.’’ The Subcommittee received testimony from: 

• Tim Day, Senior Vice President, Chamber Technology Engagement Center, U.S. Chamber of Commerce; 

• Dipti Vachani, Vice President, Internet of Things Group, 

General Manager of the Strategy and Solutions Engineering 

Division, Intel; and, 

• Michelle Richardson, Deputy Director, Freedom, Security, 

and Technology Project, Center for Democracy and Technology. 

On June 13, 2018, the Subcommittee on Digital Commerce and 

Consumer Protection met in open markup session and forwarded 

H.R. 6032, without amendment, to the full Committee by a voice 

vote. On July 12, 2018, the full Committee on Energy and Commerce met in open markup session and ordered H.R. 6032, without 

amendment, reported to the House by a voice vote. H.R. 6032 was 

similar to the discussion draft. 

COMMITTEE VOTES

Clause 3(b) of rule XIII 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. 

6032 reported. 


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OVERSIGHT FINDINGS AND RECOMMENDATIONS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee held a hearing and made findings that are reflected in this report. 

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. 6032 

would result in no new or increased budget authority, entitlement 

authority, or tax expenditures or revenues. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII, 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 13, 2018. 

Hon. GREG WALDEN, 

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. 6032, the SMART IoT 

Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Stephen Rabent. 

Sincerely, 

MARK P. HADLEY

(For Keith Hall, Director). 

Enclosure. 

H.R. 6032—SMART IoT Act 

H.R. 6032 would direct the Department of Commerce to study 

and report on the state of the industry for internet-connected devices. The study would include a survey of industry sectors that develop internet-connected devices, the status of industry-based 

standards, and a description of the ways entities develop, use, and 

promote those devices. The study also would include a list of federal agencies with jurisdiction over the industry and all federal and 

industry-based regulations, guidelines, and policies on internet-connected devices that have been implemented. Finally, the report 

would include recommendations for growing the economy through 

advancing internet-connected devices. 

Using information from the National Telecommunications and information Administration about the cost of similar efforts, CBO estimates that implementing H.R. 6032 would cost $2 million to conduct the study and issue the report; such spending would be subject to the availability of appropriated funds. 

Enacting H.R. 6032 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. 


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CBO estimates that enacting H.R. 6032 would not increase net 

direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2029. 

H.R. 6032 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

The CBO staff contact for this estimate is Stephen Rabent. The 

estimate was reviewed by H. Samuel Papenfuss, 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. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

The goal of H.R. 6032 is to create a compendium of information 

with respect to which industry sectors are developing internet-connected devices and which Federal agencies have jurisdiction over 

entities in those industry sectors. Such a compendium of information will help identify whether any current Federal activity is inconsistent, duplicative, or if there are gaps in Federal activity. 

Identifying this information is intended to help advance interagency collaboration and provide information regarding industrybased developed or developing standards. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to clause 3(c)(5) of rule XIII, no provision of H.R. 6032 

is known to be duplicative of another Federal program, including 

any program that was included in a report to Congress pursuant 

to section 21 of Public Law 111–139 or the most recent Catalog of 

Federal Domestic Assistance. 

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. 

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. 6032 contains no earmarks, limited tax benefits, or limited 

tariff benefits. 

DISCLOSURE OF DIRECTED RULE MAKINGS

Pursuant to section 3(i) of H. Res. 5, the Committee finds that 

H.R. 6032 contains no directed rule makings. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 


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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 that the Act may be cited as the ‘‘State of 

Modern Application, Research, and Trends of IoT Act’’ or the 

‘‘SMART IoT Act.’’ 

Section 2. Study and report on Internet of Things 

Section 2 provides that the Secretary of Commerce shall conduct 

a study on the state of the internet-connected devices industry. 

This section requires the Secretary, through outreach to the private 

sector, to develop and conduct a survey of entities in the internetconnected devices industry to develop: a list of the industry sectors 

that develop internet-connected devices; a list of public-private 

partnerships focused on the adoption and promotion of internetconnected devices, as well as industry-based bodies, including international bodies, that have developed or are developing industry 

standards; the status of those industry-based standards; and a description of the ways in which entities or industry sectors develop, 

use, or promote the use of internet-connected devices. 

Section 2 provides that the Secretary must develop a comprehensive list of Federal agencies with jurisdiction over entities in the 

IoT industry; identify which Federal agency or agencies entities in 

the internet-connected devices industry interact with; identify all 

interagency activities that are taking place among Federal agencies; develop a brief description of the jurisdiction and expertise of 

the Federal agencies who have jurisdiction over entities in the 

internet-connected devices industry; identify all regulations, guidelines, mandatory standards, voluntary standards, and other policies 

that currently exist; and identify Federal Government resources 

that exist for consumers and small businesses to evaluate internetconnected devices. 

Section 2 requires the Secretary, within 1 year of enactment, to 

submit a report to Congress that contains the results of the study 

and recommendations for the growth of the U.S. economy through 

the secure advancement of internet-connected devices. 

This section defines Federal agency as defined in section 551 of 

title 5, United States Code and internet-connected device as a 

physical object that is capable of connecting to the internet, either 

directly or indirectly through a network, to communicate information at the direction of an individual and has computer processing 

capabilities for collecting, sending, receiving, or analyzing data. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

This legislation does not amend any existing Federal statute. 

Æ 


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