underappreciating the role that technology plays for the army. there is ten times as much code in a tank right now as we used to send neil armstrong into space. i mean, everything has gps. everything, satellites are sort of fundamentally integrated into most of what we do now. so part of what we had to do was communicate how the army does link to a third offset strategy and where there are areas in the for future, areas that people don't leap to right away. lucky for us the deputy secretary of defense got that right away. he didn't need any explaining. but there are tremendous opportunities of ways we enhance capability for soldiers with work that is being done in the third offset strategy. >> if i could just ask one last question, mr. secretary. as you look for fulfilling your

responsibilities for young people, young women and men, their parents, families, as they consider military service, what would you tell them why they ought to choose the army? >> why they ought to choose the army. i think -- it's an interesting question, because i go to basic training. i was just down in fort jackson a couple of weeks ago. and i always ask the parents that i meet, why the army? especially if they're from a different branch. part of the army, to me the army is the force that is the most connected across the country with the united states, with america, with tradition, with the local communities. and it was brought home in a pretty dramatic way a week from yesterday, i had my welcoming ceremony, i talked about my who uncles that went to west point. one of them last name fanning. the number of e-mails i got from all over the current army today, but other people as well who knew with or served with one of those uncles. and so that's what i would tell

someone why to choose the army. because that's america's service. >> i think those in this room would agree with you. i think we would also unanimously agree that we are proud to have you as our secretary. we need you now perhaps more than ever. and we're glad you have taken on this responsibility. and especially thankful that you have joined us here this morning. >> great. thank you. [ applause ] >> mr. secretary, thanks a lot. that was terrific. general ham, great job. he's got it here in two days, as they would say, down in the motor pool, color me gone, sarg. okay.

how about all of four stars present for duty either on active duty, guard, reserve, whatever and retired. general crowson by the way is a senior veteran in the room. world war ii, korea, vietnam. when you get up close, you'll see two little star there's. he is the real deal. wounded in four wars. those three and the cold war. he is everybody's hero. how about a nice hand for general crowson. [ applause ] okay. thanks a lot, folks. let's get the picture taken to the chief and the secretary can go get more guidance.

on july 1, 1976, the smithsonian's national air and space museum opened its doors to the public with president gerald ford on hand for the dedication. friday marks the 40eth anniversary of the museum, and american history tv's live coverage starts at 6:00 p.m. eastern on c-span3. we'll tour the museum and see one-of-a-kind aviation and space artifacts, including the spirit of st. louis and the apollo lunar model, plus live events at the front of the building. learn more as we talk with the director, general j.r. jack daley, and valerie neil, chair

of the space history department. and you can join the conversation as we'll be taking your phone calls, e-mails and tweets. the 40th anniversary of the smithsonian air and national guard musician, live friday evening beginning at 6:00 eastern on c-span3's american history tv. president obama is in ottawa, canada, wednesday for the north american leaders summit. after meetings with the canadian prime minister and mexican president, the three leaders hold a news conference, that's live at 3:00 p.m. eastern on c-span. at 5:45 p.m., president obama speaks to the canadian parliament. also live on c-span. jill steinberg, the justice department's national coordinator for child exploitation prevention and interdiction spoke at a senate judiciary committee hearing today. she gave manes update on the implementation of the justice for victims of trafficking act

passed last year. from capitol hill, this is about an hour. >> thanks for being patient, and thank you for such a large turnout for very important subject. i imagine a lot of the people in the audience are part of organizations that have been very helpful in getting this important legislation passed. so i want to thank you. before i give my opening statement, because we have a vote at 11:00, i hope we're able to keep the committee meeting going during that vote. another couple of things for me, either before i ask my questions or after i ask my questions. well, if it's after wards, i'll have senator cornyn take over the committee meeting. if it's before i may go down to finance down the hall here to ask some questions on a very important medicare issue before congress.

we welcome everybody. today we will examine whether the justice department is doing all it can to meet the important milestones, established by congress under the new anti-trafficking statute. this statute known as the justice for victims of the trafficking act was introduced by senator cornyn. i cosponsored it. and it was among the first pieces of legislation that our committee reported out during my initial months as chairman. today's hearing provides us an opportunity to ask the department about this administration's efforts to implement the law since this enactment just over a year ago. at its core, human trafficking involves the exploitations of another human being, typically for purposes of forced labor or commercial sex. its victims can include both men and women, adults and children, foreigners and u.s. citizens.

in most, if not all such cases, the trafficker exploits a victim's vulnerabilities. for example, sex traffickers typically use some combinations of force, deceit, or/and flattery to exploit their victims. they may ply the victim with drugs or alcohol to make them more compliant. and then often combine violence with manipulation to exert control. horrific only begins to describe the effects of sex trafficking on its victims. the mental and physical scars run deep. in fact, they never heal for some survivors. if that weren't bad enough, this form of trafficking is a growing domestic threat. for example, violent gangs find it highly profitable to sell young girls and women for sex in this country and human beings

unlike illicit sex can be sold again and again. that's why it's in every state in the nation with victims turning up in even rural and suburban areas of the united states. domestic labor trafficking, which primarily affects noncitizens of the united states has received less media attention, but its victims also suffer terribly. much like sex traffickers, labor traffickers exploit the victim's vulnerability which might include limited english skills, isolation, or poverty. some labor traffickers may induce their victims to travel here under false pretenses and then confiscate their identification and travel documents. others may deceive a worker into believing they owe a massive debt that must be repaid. still, others use a bait and switch technique, promising to

hire somebody for a specific job at one pay level, but then forcing the worker into another less desirable and more dangerous job at little or no pay. it's important that we ensure appropriate resources and supports are in place to help these victims as well. for all these reasons, the successful implementation of the justice for victims of trafficking act is a top priority of this committee. in passing this law we prioritize victims services by creating a mechanism to ensure that money flows in the domestic trafficking victim fund. we focus on curbing demand by enabling federal prosecutors to pursue those who purchase sex from trafficking victims. we encourage collaboration by calling for federal anti-trafficking task forces to work with state and low officials in investigating

trafficking offenses. we encourage strategic planning by calling for the adoption of a national strategy for combatting human trafficking. multiple federal agencies are involved in fighting human trafficking within our borders. today, however we focus primarily on doj's efforts to implement the requirements to which the department is subject under the new act. we provided new tools and a new source of funding, and now we hope to hear how the department has used those. we welcome you, ms. steinberg for coming today to talk about the efforts undertaken by the department over the last year as well as challenges that remain in implementing the problem. finally we will hear from the government accountability office which today is releasing a new report on the federal response to human trafficking. this report, as well as another

released by your agency in may responds to two separate reporting requirements that senator flake and i championed during our consideration of the new statute. so i recommend dr. greta goodwin who is testifying before the committee for the first time. and i presume you're very aware of what goes on here. i always compliment the gao because i find them so helpful for so many of my investigations. and i think you do good work for us. >> thank you. >> i look forward to hearing. now i go to senator klobuchar. >> thank you very much, mr. chairman, and thank you for holding this important hearing along with senator cornyn. well let that bill, the justice for victims of trafficking act, it wasn't an easy bill to pass. but i'm pleased that people came together and supported that bill. because as much as we talk about the problem of sex trafficking

internationally, it's the third biggest criminal enterprise human trafficking, across the world after illegal drugs, illegal guns. but we really can't be a beacon on this issue until we clean up our own shop here at home. and that's what the justice for victims of trafficking act was focused on. i think sometimes people think that this is a distant issue, something that only happens in foreign lands. then you hear the story of a 12-year-old in rochester, minnesota who got a text to go to a party, showed up at a mcdonald's parking lot with a friend, got put in a car, brought up to the twin cities, raped, pictures were taken, put out on the internet. then sold to two other men. the guy that did that was convicted in federal court. but that's a real story. just as centuries ago british were one of the first industrialized countries to ban slavery because of the stories,

because of what people saw when they saw slaves held at the bottom of ships, these stories are important because it makes people understand that this is happening right in our country. just last month, a man convicted of victimizing seven women in minnesota was sentenced to 58 years in prison, the longest prison term for sex trafficking in our state's history. and a number of cases are being handled since this law passed on the federal basis. i know that attorney general lynch and the deputy attorney general are devoted to taking on these cases, both having come from the u.s. attorney's office, one in new york, one in georgia, and handled and supervised firsthand these case. and i think that's a positive development. we're seeing more and more of these cases being brought at the federal and state levels. so we know many of these cases will actually be brought at the state and local levels. that's why our bill had a very

important provision, the safe harbor provision. and it created incentives for states to develop safe harbor laws. that's the idea that you really are a victim when you're a kid, when you're 14, 15, 16, 17 years old. it's not a crime. you're a victim. as the chairman was explaining, people get lured into this in various ways, with drugs, because they are a runaway, because they've been taken from their homes. the u.s. marshals noted that the bill already is bolstering and already robust partnership with the national center for missing and exploited children, which has resulted in the recovery of more than 600 missing children by u.s. marshals personnel since 2003. so there is a lot of work going on. the other work going on, which wasn't really something we could mandate in the bill, but i think the strong federal statement for a bill signed into law made a difference. and that's the private sector is stepping up.

a number of hotels, airlines are signing pledges to train their employees. senator warren and i actually have a provision in the faa bill that would require training of flight attendants. this came from the flight attendants and not opposed by the airlines. because they're on the front lines, see this happening. same as the hotels have come up to the plate and have been training their employees. so we're really excited about the work that is being done in the private sector, as well as the work that has come out of this bill. so thank you for holding this timely hearing. and i think senator cornyn, who i know will be with us for his leadership as well. thank you, mr. chairman. >> now let me introduce both of our witnesses. first is ms. jill steinberg, serving as the justice department national coordinator for child exploitation prevention and interdiction. in that role she oversees the implementation of many of the department's human trafficking

initiatives. previously ms. steinberg served as assistant u.s. attorney for the northern district georgia. she also served as attorney adviser within the department's national security division and as assistant district attorney philadelphia, she received undergraduate degree from the university of georgia and law degree drake university -- or drakes in my state. duke university. our second witness, dr. greta goodwin. she serves as acting director of homeland security and justice team at the u.s. government accountability office. her portfolio covers justice and law enforcement issues. since joining gao, dr. goodwin has conducted research in a wide range of domestic policy issues. she earned her ph.d in economics from the university of nebraska lincoln and she received her bachelor's degree in economics from the university of houston.

ms. steinberg, would you proceed, please? and i've been told that you have to leave by noon. but i think we should be done by then. unless we have more than the average attendance at this committee meeting. but we'll have to accommodate whatever your schedule is. so we thank you for being here. proceed, please. >> thank you, sir. chairman grassley, ranking member klobuchar and members of the judiciary committee, i thank you for inviting me this morning to address the important topic of human trafficking in the united states. the attorney general has made the fight against human trafficking one of her top priorities at the justice department. one aspect of doj's anti-trafficking work sour successful collaboration with the department of homeland department through the u.s. mexico human trafficking bilateral initiative. this has led to federal prosecutions of over 170 defendants, prosecutions in mexico of over 40 traffickers, and the recovery of over 200 victims. doj has also partnered with dhs and the department of labor in the act team initiative to

develop high impact human trafficking investigations and prosecutions. in phase 1 of this initiative, team 1 showed a 190% increase and a 114% increase in defendants charged. in the fall of 2016, doj announced phase 2 of the act team initiative to build on that great success. in september of 2015, doj announced $44 million in grants to combat human trafficking. almost 23 million went to support the enhanced collaborative model of anti-trafficking tafrs cross the united states. this year's fund willing support 16 anti-trafficking task forces. initially the 2015 grants included approximately $8 million for comprehensive services and almost $6 million for specialized services to trafficking victims. i'm proud today to discuss the department's implementation of the justice for victims of trafficking act. first, the jbta creates a fund for the purpose of making grants to support anti-trafficking

efforts and provide services to victims. the fund has two source of money. the special courts impose a special assessment on noncriminal indigents after the date the jbta was enacted. this is paid after the defendant pays all other fines in order of restitution. second, requiring the health and human services to transfer $5 million into the fund. the fund received that $5 million in december and the first assessment from a criminal defendant was received into the fund in january. as of may the fund had received over $100,000 from assessments on criminal defendants. doj has allocated $2 million of the fund to the office to delinquency prevention to be used for grants for victims of child pornography. the remaining amounts they're funding a solicitation in fiscal year 2016 to improve outcomes for victims of child trafficking. the words patronizes and

solicits to section 1591 the day after the jbta became law, they sent written guidance to prosecutors with an overview to all the changes of the criminal law contained in the jbta. this was followed with training at the national advocacy center and the in june of 2015 and in april of 2016. both of which were attended by over 1300 investigators, agents, and prosecutors from across the country. both before and after the jbta was enacted, doj has prosecuted defendants who paid for attempt to pay for sex with children. for example, in florida, prosecutors charged jonathan taylor under section 1591 for on tang, patronizing and soliciting a 15-year-old girl. in texas, prosecutors convicted luis rivera and brady rodriguez cruz of engaging in a sex trafficking conspiracy. the evidence showed that rodriguez cruz paid rivera for a 12-year-old girl to engage in commercial sex. in indiana, prosecutors charged alexander josik for soliciting

and patronizing two minor females for prostitution. these are butt three examples of many cases brought against individuals who have sought to have sex with victims of trafficking. finally, section 114 of the jbta relates to training of law enforcement and prosecutors. they conduct extensive training on recognizing, investigating, and prosecuting human trafficking cases and assisting victims. for example, doj provides several training courses every year to victim coordinates across the country at our national training center. the doj has also provided training to investigators, prosecutors, judges, ngos from over 20 countries and cities throughout the united states. the fbi leads multiple anti-trafficking training courses for federal agents. task force officers, tribal, state and local law enforcement as well. in particular, the fbi has developed a training course on conducting proactive demand reduction operations. with the goal of targeting customers of sex trafficking. that has been provided to federal agents and state law enforcement as well.

doj is brought of its work to combat trafficking and support the survivors of this terrible offense. but there is still more to do, and the doj will continue to prioritize its anti-trafficking efforts. thank you again for highlighting this very important issue this morning. >> thank you, ms. steinberg. now dr. goodwin? >> ranking member grassley, chairman grassley, ranking member klobuchar, and members of the committee, i am pleased to be here to discuss doj's recent reports on human trafficking. human trafficking is the exploitation of a person through force, fraud and coercion for such purposes as forced labor, involuntary servitude or commercial sex. trafficking victims span all age, gender, race, ethnicity, sexuality, citizenship, and nationality categories. human trafficking takes place throughout the country, and often involves victims who are already vulnerable such as missing and runaway youth, or persons with substance abuse addictions. as we mark the one-year anniversary of the justice for victims of trafficking act, i'm

here to talk with you about actions federal agencies have taken to implement related statutory provisions, challenges faced by law enforcement when combatting human trafficking, and grant programs intended to combat trafficking and assist victims, as well as efforts to reduce the potential for duplication across programs. we reviewed 105 provisions across six human trafficking-related statutes that called for the establishment of a program or an initiative. the programs cover varies types of activities to address trafficking, among others and includes grants, victim services, criminal justice, and public awareness. for many of these provisions, more than one agency was responsible for implementation. for the majority of these provisions, all responsible federal agency reported taking actions to implement them. in instances where agencies had not taken any action, they provided us various explanations. moreover, specific to the

provisions within 2 jbta, we reviewed 20 of those. and federal agency reported taking actions to implement 18. law enforcement officials and prosecutors identified several challenges with investigating and prosecuting human trafficking including a lack of victim cooperation, limited availability of services and difficulties identifying human trafficking. obtaining a victim's cooperation is important because the victim is generally the primary source of evidence and is also the primary witness. yet cooperation is difficult as victims may be unable or unwilling to testify or talk to law enforcement for fear of retaliation by the trafficker. victim assistance programs like mental health and substance abuse services may help improve victim cooperation, yet the availability of these services is limited. additionally, identifying and distinguishing human trafficking from other vitamins like prostitution can be challenging. agencies have sought to address

these challenges through public awareness campaigning, grant programs, and the training of judges, prosecutors, and investigators. for fiscal years 2014 and 2015, we identified 42 grant programs that may be used to combat human trafficking, or assist trafficking victims. 15 of these programs were solely intended for this purpose. because these grant programs have similar goals and can be used for similar activities, there is overlap among them. however, the real concern is whether these programs are duplicative. in other words, whether a single grantee is using funds from multiple agencies to pay for the same activity. for the 15 grant programs we reviewed, we did not find duplication. we found that doj and hhs have processes in place to avoid duplication. for example, in response to our prior work on doj grants, doj now requires applicants to

disclose whether they currently receive or are applying for other grants for the same activity. additionally, specific to human trafficking, the senior policy operating group has procedures in place for agencies to constitute their grant programs and minimize the risk of duplication. agencies that participate on the grant making committee share grant solicitations and information on proposed grant awards, which allows them the opportunity to comment on the proposals and determine whether awards are being given to the same organization for the same activity. chairman grassley, ranking member klobuchar, and members of the committee, this concludes my remarks. i'm happy to answer any questions you have. >> thank you both very much. senator cornyn, i would like to proffer this to you. i know you wanted to make an opening statement. i would like to ask my questions and then go to senator klobuchar, and i'm going to go down to finance, and you said you would chair. and at this point make your

opening statement. would that be okay? >> sure. >> okay. >> ms. steinberg, in recent years, the justice department federal prosecutors have focused primarily on curbing the supply of sex trafficking victims by pursuing traffickers who advertise and sell human beings for sex. with the passage of last year's act, congress shifted some of the focus to curbing demand. this new law makes it much easier for prosecutors to charge buyers of sex trafficking victims. i have three questions along this line. since this law was passed, as the justice department issued guidance and a directive to assistant u.s. attorneys about this important statutory change? and if so, in what form did the issue -- did you issue that guidance? i think -- bush the button.

>> turn my microphone on. thank you for that. the department shares the perspective of this committee that anti-trafficking efforts need to be all encompassing, that is attacking the problem through buyers and individuals who feel the demand for commercial sex. to that the department has prosecuted a number of case. some of those are included in the testimony, but there are many more both before and after the jbta. with respect to guidance, the day after the jbta was passed, doj sent guidance out to prosecutors with respect to the criminal changes in that bill. in addition to that guidance, we have sent out a memorandum to all united states attorneys first assistants, criminal chiefs, and prosecutors on the changes to the jbta, including the changes with respect to demand issues. in addition to the guidance memos we have done a significant amount of training on the prosecutor side wall street. done training at our national advocacy center two times, at

least through our child exploitation and obscenity section. we've done it as well through our civil rights division and the criminal division asset forfeiture and moneylaundering and have done it at our child conference on two locations which includes federal, state and local law enforcement and prosecutors. >> okay. on the second question, whether you have a ballpark figure or exact number, or maybe you'll have to respond in writing. but how many buyers of commercial sex have been charged in the last year under the federal law? >> that number would be difficult. i certainly could take it back and see whether we can provide that number. what we do in our case management system is we record prosecutions by statute. so we would be able to indicate how many cases are prosecuted under section 1591. and as you know, the jbta gave prosecutor morse tools to prosecute individuals under 1591, which is a good thing. so prosecutors can charge a case as a soliciting case, as a

patronizing case, as an verbs t 1581. so we're able to give stats on 1591 but can't necessarily indicate how it was that the crime was committed so what we've done is compiled and taken a survey of cases and been able to provide a lot of the examples in the written testimony but i don't know whether or not we can get you an exact number. >> okay. if you can, submit that in writing. the justice for or the act that we're talking about calls for the attorney general to ensure that all task forces and working groups, including the innocent lost initiative engage in efforts to target child sex buyers. has the department -- pardon me, has the department provided this technical training to law enforcement officials since last year's law was enacted?

>> yes, sir. again, we share the committee's view that in order to tackle this problem, we need to tackle it through prosecuting traffickers and buyers of commercial sex. two examples of that is the spring, the fbi violent crime section had their conference related to child exploitation offenses and trained on the side of the jbta and targeting customers of commercial sex. they've done these in addition to the ones i've talked to on the prosecutor's side. >> instead of the next question, i assume from your answer that the department has revised current human trafficking training material to inclue methods to improve the investigation and prosecution in demand related offenses. >> yes, sir, our trainings reflected the changes to the jvta and indicated to

prosecutors and investigators that there are new tools available to them. >> my last question, are there any other efforts that the department has taken to encourage federal law enforcement to consider the sex buyer as a potential sex traffic and offender in investigations and prosecutions? >> yes, through all of those trainings, the federal agents, state and local and travel law enforcement officers by changes by the jvta and methods that they can be prosecuted and investigated are increasing the capacity of all of the law enforcement officers in these cases. >> senator klobuchar, thank both of you for participating. >> thank you very much. thank you to both of you. one provision of the justice for victims of trafficking act that we worked hard to make sure was included was the development of the national strategy by the justice department. it reminds me of domestic violence where we have a lot of the work being done at

localities across the country but we want to have best practices in a national strategy data of sharing all of those things because that has worked well with the domestic violence prosecutions. i understand the department has convened a working group of doj leadership offices to formulate the national strategy. can you give me an update? i hear that the department expects to finalize it in the fall of this year. are you still on track for that time table and what is happening? >> thank you, juror, we did convene a working group shortly after the passes of the jvta, the working group includes all of the components of the department that work in the trafficking space. it included the human trafficking prosecution unit. our executive office of the united states attorneys, and the fbi. in addition to that, we have individuals from our office of justice programs which is where the grant making side of the justice department as well to make sure we're all communicating and communicating

within strategy things that involve parts of the department with respect to enforcement activities. since that working group came together, one of the things that has happened is a guidance memo has gone out to all of the united states attorneys, as you know, the stat graechl requirement includes district specific strategies in every district across the country and in order to help that process along, we gave guidance on how it is that the districts can go about doing that, not just the mandates but the recommendations on how to go about doing that to achieve uniformity in what it is they're thinking about. the guidance has gone out as one of the efforts of the working group and simultaneously the national level, the hltss level, we're working on that part of the strategy. those things have been happening together and we continue to be hopeful it will be done in the fall. >> okay. very good. good answer. the national human trafficking hotline was part of the bill that we made sure got included in the final draft as well and this is a national toll

free hotline to give round the clock support for tips, for trafficking victims trying to escape dangerous situations. 5,544 cases were reported through the hotline including 47 in my state. could you tell us about the role of this hotline and if there is anything that should be done to make it more feeffective. >> i'm familiar with the hotline and i think there is a wide consensus that it is extremely helpful tool and i know there has been a lot of referrals to law enforcement as a result of the hotline. hhs in the past had been the funder, it provided funding for the hotline. i think the bill changes this to doj or shifts that and i know in 2017, that funding will come from the office from the victims of crime that is something that the department is aware of and will shift over. >> okay. trafficking across the u.s. mexico border, a few years ago,

senator and i and cindy mccain went over and heard about the work done between mexico and the u.s. it led to the u.s. federal prosecutions of more than 170 defendants in the rescue of more than 200 victims from trafficking networks. what are some of the challenges with those across border cases. some of the victims coming up even from countries south of mexico and where do you see this bi- lateral work going? >> you're correct. wherever there is a case that involves multiple jurisdictions, it complicates things. as i indicated in my testimony there, is great initiative going on between the united states and mexico, the u.s. mexico bi- lateral human trafficking enforcement that has been incredibly successful through the cooperation of mexican law enforcement and their united states partners. one of the reflections of this is a case that was brought recently in the eastern district of new york, just last week, there were five individuals

extradited and arraigned on sex trafficking charges there in brooklyn and it is a reflection of the success of the program and we hope that it will ton yield these kinds of results. >> and last, i mentioned in my opening statement the work that is being done in the private sector to train on the front lines, flight attendants, hotel workers, we included the stop trafficking on planes act which came to us actually from the flight attendants in the faa bill and that we're waiting to get finalized here. could you talk about training in the private sector and why that is important? >> yes, and the department dpre agrees that training with members of private sector and individuals who work for the government who might have interaction with trafficking victims is extremely important. that is on the law enforcement side and the criminal division and the fbi and through our office of justice program and grant making components. that is happening on both sides of the house and it is also

something that is included in the district specific strategies, the national strategies, the continued engagement with the private sector. >> very good. thank you very much. i think we turn now senator franken. thank you. >> thank you, senator klobuchar, i want to thank you and senator cornyn for the work that you've done on this. there is a lot we can and are doing and should be doing to fight trafficking. this includes strengthening trafficking enforcement, providing supportive services and ensuring that we treat victims as victims, not as criminals but prevention is also a critical piece of the puzzle and this requires the right policies backed up by sufficient resources as we've explored previously in the committee and research continues to demonstrate run away and

homeless youth are particularly vulnerable to trafficking and exploitation, indeed kocovenant house youth exchanged sexual acts for basic necessities like food and a place to sleep. a recent study by covenant house snorlz that a quarter of the homeless youth have been victimings of trafficking or sexual labor. this is obviously horrific and unacceptable. miss steinberg, what more must we in congress do to ensure these kids have access to shelter to prevent them from becoming victim to trafficking and in your view, how would increasing appropriate rations under the run away and homeless youth act help provide necessary

services to youth in our communities. >> thank you, senator, you're correct in that our vulnerable populations include the homeless youth are particularly targeted and over represented in the individuals who are victims to trafficking and we share that concern as i indicated, we have a substantial amount of grant funding that goes out to support victims and services for victims of trafficking. there was approximately $8 million in comprehensive services and over $6 million in specialized services this past fiscal year and we will continue to do what we have with the appropriations that we have to serve the victims. >> i would like to prevent it so we don't have to service them. i like to talk about another community that is disproportionately affected by trafficking in minneapolis. american indians make up only 1.2% of our overall population, yet they represent over a

quarter of the women arrested for prostitution in minneapolis' third precinct, many of these women and girls have experienced long-term homelessness, poverty, sexual and physical abuse, and interactions with child protective services. american indian women have also discussed their experiences with racism and generational trauma that developed from the targeting of their community since the beginning of our country. miss goodwin, how is funding either from jvta or other related sources being targeted towards communities that are disproportionately affected by trafficking and specifically to our american indian communities? >> for the specific reports that we've recently released, we

didn't focus on native american human trafficking, but we do know that some of the programs that are available, native americans would be able to access those services. and separate request from the indian affairs committee, they have taken to looking specifically at native american human trafficking and part of the resource objectives that we have will include the funding for services and programs that would be available to them as well as we're going to be looking at or examining and questioning law enforcement personnel as well as service -- victim service providers for that community. >> thank you and ms. steinberg can you elaborate on phase two and the trafficking coordination teams efforts in minneapolis and how those will be used to address the over representation of american indian -- american indians among trafficking victims. >> as you know, one of the new act sites is in minneapolis and the reason why those act teams are successful is because the

cooperation between all of the different federal partners, the department of labor, doj and the surge of resources into the area and help from hltss entities like our human trafficking prosecution unit to generate leads and create high impact investigations and prosecutions. part of the training that we do is putting up the act teams is making sure that every person on the team, this is something that we do throughout the department, a whole department approach, victim centered approach and investigating and prgtiosecutin the case. that is inherent in it but also to be attuned to things that are unique to each vulnerable population and that is inconclusive of individuals who may have come -- are native american or victimized on indian country. >> thank you very much. mr. chairman, thank you for your work on this, on this subject. thank you.

>> miss steinberg, under the justice for victims of trafficking act, the department was required to im applyment a national strategy coordinating federal, state, local and tribalal efforts for section 606 required the appointment of an assistant u.s. attorney to effectuate this. has attorney general created that national strategy? >> there was a work group that was put up immediately after the jvta was passed that included all components of the department, all of the experts and through the leadership office including the deputy attorney general and attorney general's office and that started immediately after the jvta was passed. one of the things done by the working group is to put guidance out to the u.s. attorneys about the necessity of having a district specific strategy so that process is under way and we've given very specific guidance to them on how to go about doing that. one part of the district specific strategy is to have a

ausa in each district who is the point of contact for human trafficking so part of the stat graechl has been accomplished. the final written document, we expect to be done in the fall. >> and as you know, the jvta created a domestic trafficking fund and i think you alluded to that earlier and it mandates that the victim fund be, that there be a levee of a $5,000 assessment on offenders convicted of human trafficking, sex abuse, child porn, child sexual exploitation, interstate transportation and commercial human smuggling. this was, at the time, we estimated that some $31 million in obligated assessments could accrue based upon fiscal year 2012 data from united states sentencing commission that this additional special assessment would apply to more than 6,200 offenders per year.

unfortunately, we haven't yet seen the fund, seen the benefits of the fund to the extent that we had hoped for, how much sme in the fund today? >> it is about $102,000. >> what do we need to do to get that number up? >> well, i mean, we obviously are in agreement that we would like to see more money in there but some of it is the function of the ex post facto concern. an individual assessed under the jvta needs to hacommitted the crime after the enactment. may 29th of last year. the trafficking investigations, the child porn investigations generally are long-term investigations so the crime would have had to occur after may 29th. the investigation would take place, the case would be indicted, and then the case has to proceed all the way to sentencing and to a judgment and conviction. and so as time goes on, there will be more individuals who will in effect be qualified to be assessed.

the other component is that the individual needs to be nonindigent. there will be a substantial portion of people that will be likely considered indiggent and won't be assessed by judges onto the jvta so that is our experience as well. overtime we expect to see those numbers increase. >> so they got the money to buy sex but not enough to pay the fine. so according to some preliminary analysis by some of the trusted victims advocacy groups, there have been five cases in which the conduct occurred and the case was closed out after the jvta was enacted where the special assessment was not assessed. is that for the reason you mentioned a moment ago, because of ex post facto concerns? >> i would be happy to look at the facts of each case but generally, our experience is that the offense conduct occurred prior to the enactment of the jvta or the individual

was considered to be indigent. those are the two factors that have the most impact in terms of assessments and collections up into this point. as we see another year go forward and we see additional collections, we'll be able to detective whether there are any other patterns in terms of assessments. >> as you know, one of of the biggest concerns under the jvta is the lack of equate resources -- adequate resources for victims and obviously we're interested in making sure that the aspirations we have about the size of the fund come into play or are realized. that is a serious concern, but i understand your answer to the question. $5 million was directed into the fund for healthcare services to victims under the patient protection and affordable care act. can you tell when you say the $5 million was transferred? >> it was transferred in december and the first assessment from a criminal defendant hit the fund in

january. >> and what is the plan for disbursement of the funds in 2016 fiscal year? >> they will all be dispersed in 2016 in this fiscal year. there is a $2 million that the jvta provides that has to go to the victims of the child pornography offenses. it has been transferred. it will go into the child advocacy center sub grant program that will be then dispersed into sub granties of the program to service victims of child pornography. the other amounts have been put into a grant program for office of victims of crime on improving outcomes of victims of human trafficking, a jurisdiction wide approach and there will be one or two grants that come out of that particular program for a state or federally recognized tribes effort to identify gaps in services and other issues that relate to trafficking come up with a strategy and then fill

those gaps. >> i have a statement that i'll ask to be made part of the record which will happen without objection and i know that senator whitehouse is the next questioner. thank you. >> thank you, chairman. miss steinberg, thank you for your work and the work of the department of justice. i want to commend the worker in rhode island and the attorney general of rhode island for the work that they're doing together on trafficking. i don't know how many of the different districts have such a model, but to have the attorney general and the united states attorney, to have federal, state and local law enforcement, to have groups like the sexual assault victims groups, the hospital emergency rooms all joined together on this has really made a different in rhode island. i hope that that is a

commendable model. i note in your testimony that you provide a significant array of case studies that are examples of prosecutions. i wonder if you would be able to provide the committee in response to a question for the record any case studies that are examples of the way in which the department has been able to use these authorities to help rebuild the lives of of the victims, the stories tend to end with the conviction which is the ordinary way in which the department of justice looks at this. part of our intention in this legislation is to make that these victims, who at one point where were actually seen as criminals and to be treated as such, not only had that point of view shift about their circumstance, particularly when, my gosh, they're too young to be

able to provide consent, but also to make sure that they got the resources to try to rebuild their lives because very often there is not a whole lot of structure or support there, so if you have a favorite case or ten that you would care to share, obviously protecting the privacy of the victim i think we would all like to hear about that side of the equation as well. and my last question has to do with looking at the summary of these cases. i'm wondering how often the racketeering statute figures in any of these trafficking prosecutions. >> senator, you're right that there is, in some circumstances the possibility that the rico statute can be utilized. i believe it has been utilized in california. our prosecutors are trained on all of the tools. there are a number of different tools in the tool box with respect to trafficking.

they're entrepreneured on all of them and -- they're trained on all of them and examine the facts and use the tools we give them in terms of the training every year in terms of the best charging strategy. rico has been used in california. there might be more, but that is the case that i'm familiar with. >> these do tend to be organizations that do this. in some cases, it appears that criminal organizations that cut their teeth trafficking in narcotics or engaging engine cyber or other fraud schemes switched over to human trafficking because they saw how lucrative it was given the international component of this, i would be interested in your thoughts on what we can do to make sure that the reach of law enforcement into these over seas trafficking organizations is at its maximum constitutional

capability. >> i agree with you, that when there is an international component it makes cases more complex and that is what is so great about the u.s. mexico bi- lateral enforcement initiative. it is a great example of what it is we're capable of doing when we actively engage with other countries and cooperate with them in terms of not only building the cases but prosecuting them in the united states and in mexico. so we'll continue to work on that success, not just with mexico but other countries where we find those same patterns. >> and given the infrequency with which the rico statute is used at least in the cases that you have identified in your testimony, is it fair then to conclude that the recent decision limiting the reach of rico over seas is not a significant concern for these prosecutions by the department?

>> i think i would have to look more carefully at the decision you're referencing, but right now, there are prosecutors have an array of tools to use and it would department on the facts and circumstances on the case. i haven't received any information that they're having difficulty in employing the issue. >> if you take a look at it, you know the case, the tobacco case in which the court said nope, we don't do -- you know, over seas, you can be a rack tear all you like and we're not going worry about it. if that is affecting your prosecutions in any way, take that as a question for the record and i'll yield my team. >> miss goodwin, back when we were doing the jvta and the committee, i had offered an amendment that unfortunately didn't get into the final bill but was expedited removal of

illegally present persons after they served their term if they were convicted of human trafficking, i'm kind of curious to know if you have any data on what percentage of either arrest or convictions in your experience or actually people who are actually illegally present. >> we didn't include in within the scope of our work. when we looked at human trafficking, we included in our definition if someone was here legally or illegally. our focus was what was happening on american soil. i don't have that information but we can see if we can get it for you. >> i think it would be helpful because we were trying to figure out ways once again, they've been convicted, served their time, how to get them out of the country. go beyond that and i would be interested in knowing what the numbers are. so thank you. >> am i correct you went to

duke? >> yes, sir. >> couldn't get into the a school down the street? >> fair criticism. >> it is actually a great school, proud of all of our universities. i'm kind of curious, law enforcement agencies, what more do we need to do? is it implementing some of the provisions of the jvta that hasn't been implemented or what other things do we need to do to make sure law enforcement at every level has the right tools that they need. you know, in this bill, i think we almost doubled the funding 13-1 or 26-6 but more than just throwing money at it. what other things should we be looking at to take the fight, be more effective in fighting human trafficking? >> thank you, senator, the jvta gave the department a number of different tools and we are working on implementing the items that are in the jvta.

one of the examples on ways that we continue to sort of build capacity and just improve what it is the department was already doing, i think very well, is with respect to the for fit year and restitution provision. we've always done work with respect to restitution in terms of training and things like that. our criminal divisions and money laundering section hired a dedicated attorney and experienced ausa to specifically work on the money element of the human trafficking cases and to do additional training with respect to for fit year and restitution and that is one more tool that we have that we're employing into the field in terms of not just building cases but taking a survivor approach to the case and making sure that restitution gets back to the victims and using forfeiteds sets to fill restitution. do you have anything to add, miss goodwin?

>> well, the issue of restitution wasn't really a part of the work that we did in the court of the work we reached out to doj to get more information about restitution. we looking at 22% of the defendants were ordered to pay restitution. >> miss goodwin, did any of your work focus on tsa and whether or not they're realizing any success in identifying trafficking victims or criminals? >> we didn't look at the extent to which that was happening at tsa. one of the things we found is there is training happening of the tsa agents to help them identify human trafficking when they see it. >> miss steinberg, i'm curious, for some of the provisions that have not yet been implemented, can you give me an idea why in terms of, is it a prioritization

or indication from the department that it is not necessarily a key element in your opinion on how to go about dealing with human trafficking? >> senator, we prioritize not only in traffic efforts but the implementation of the jvta. there is only one that hasn't been implemented and that belongs to a website that we're supposed to put up and they've been actively working og implementing that. it is work with non-profits, private entities in terms of gathering the information and finding the best way to aggregate that and getting it on the website. other than that, every provision is implemented, at least for the report. >> and miss goodwin, just a final note, if i could see if we can get any information on any arrests or convictions related to people illegally present, i would be very interested in that to know whether or not the memo that we sought to get worked into the bill is something we

should go backing to. >> okay. >> i don't want to address a problem that doesn't exist but if it is a significant number, i would be interested in getting the data. >> thank you. >> we'll get back to you. miss steinberg, we talked about training for prosecutors, are you aware of what training has been made available for the judiciary. >> there has been training for the judiciary, one of the grant making components actually does judicial training and so that is a grant program that existed previously and continues to exist into the next fiscal year. i know separately that the administrative office of united states courts put out a memo after the passage of the jvta to advise judges about the changes to the law separate from doj. they're aware of the jvta as a result of the memorandum. >> you've been talking about the difficulty of getting cooperation from the victims of human trafficking. this is one of the unique things about this crime is frequentry the victim is willing at least

initially until they find out that they are basically in a trap and become literally enslaved. are you aware of any victim services, programs that are useful in dealing with the victim cooperation? is there any social science, any experience we have out there that would help us do a better job of getting cooperation from the victims of trafficking sng. >> well, the 15 programs that we looked at, the grant programs, we also did conduct a site visit to various places within the u.s. and we talked to a number of victim service providers as well as a number of law enforcement officials and what they told us is that while victims -- victims cooperation can be difficult, part of of the reason it is difficult is because the victim fears talking to the police officer or to the law enforcement official, but they also fear retaliation by the trafficker. in some cases, you could have -- you could have a case where it

is not just the victim, it is not just the person being trafficked, but the trafficker might actually have someone from their family also being, for lack of the better word being held hostage and holding that over their head in an effort to force them to engage in the trafficking so some of the victim service providers have done a lot of training for the police officers, the cases where they're working in tandem to help them, when you see someone being trafficked, how do you have a conversation with that individual to help them talk to the law enforcement person but you also have to take care of what is happening to the rest of that individual's family. >> so human trafficking is frequently engaged in by organized criminal networks, right? it is not just an individual pimp or somebody who decided to target one person, it is an

organized crime. >> it could be, yes. >> it could be transnational as well. >> yes, and that is another reason why it would be so difficult to get the victim's cooperation. while that particular victim might be trafficked within the u.s., they night have other family members being held outside of the u.s. >> so a trafficking case is not typically a one offer or isolated ininstance, these are part of human smuggling networks sometimes fueled by drug cartels and people who transact in other illicit activities as well. isn't that right sng. >> that was beyond the scope of the work that we did. i'm imagining doj is probably better positioned to answer that question. >> thank you for that question. our experience is that it happens in a wide variety of ways. there are more complicated trafficking networks that might involve smuggling individuals over a border, but then there are also individuals who have you know, one or two victims

that they might be trafficking. so we actually see a really wide range of activity that relates to trafficking, some of which as complicatesed as you described and others can be very straight forward. >> within that range, though, you do agree that international human trafficking networks are part of the problem. >> yes. >> yeah. okay. senator tillis, do you have any questions you want to ask? >> i know we have a vote coming up at 11:00 and you all have been great. thank you for your testimony today. we appreciate your good work. what we're hoping for, miss steinberg is we get that fund up because there are a lot of victims and a lot of organizations that could use the grant funding to help provide services to victims. my friend, former judge ted poe in houston in the house pointed out that we have more funding for our pets than we do for victims of human trafficking which is just a terrible

contrast and we need to do much better and fortunately, the justice for victims of trafficking act was enjoyed by bipartisan support and created this new funding mechanism that would make more funds available. we hope more doj prosecutors prosecute these cases and seek the restitution and seek the assessments so we can get that fund up, not only because they deserve to pay it but also because the victims deserve the benefits of the fund. thank you very much. the hearing will be adjourned.

senate democrats tuesday blocked a 1.1 zika funding package drafted by republicans citing politically motivated language and planned parenthood and environmental regulations. the partisan clash casts serious doubts. on the ability to combat the virus before they leave washington for a recess. the senate home land security look at efforts to prepare for and prevent a zika virus outbreak in a meeting wednesday morning. watch live at 10:00 a.m. eastern on c-span and c-span radio. later in the day, cia director john brennan talks about instability and threats to global security with pbss judy woodruff. that is live at 2:00 p.m.

eastern on c-span and c-span radio. automotive and tech industry representatives testify about developing a network of connected vehicles. they looked at how federal regulations can be improved to boost technology development. this hearing of a senate sub committee is about an hour and twenty minutes. >> good morning, i am pleased to convene the senate sub committee on surface transportation and merchant marine infrastructure safety and security. for today's hearing entitled how the internet of things can bring u.s. transportation and infrastructure into the 21st century. this hearing will examine how the internet of things can advance our nation's transportation and infrastructure system. american's transportation network is positioned to benefit from new developments in technology. for example, the internet of

things offers new ways to alleviate congestion. on our nation's roads, reduce cargo shipping, delays at ports and monitor rail and pipeline infrastructure safety. this growing inner connected network can inform policy makers on where to invest limited resources in road and bridge maintenance. in march. senator booker and i joined senator's shots to introduce the developing innovation of growing the internet of things or the digit act and this bipartisan legislation builds on our resolution which passed the senate last year. it calls for a nationwide strategy to drive development of the internet of things. the digit act would convene a working group of private and public sectors stake holders to offer recommendations to congress. they would focus on how to plan for and encourage the growth of the internet of things. our bill would begin discussions on the future of this network and ensure that the united

states is adopting policies that acacceptable rate innovation and allow it to thrive. this could have a positive effect on transportation. for instance, global supply chains represent a major opportunity to take advantage of the internet of things to grow exports and imports, in today's just in time shipping environment, time is money and efficiency is key. according to the u.s. department of transportation by 2045, fright volumes will increase by 45%. dot and beyond traffic report found transportation delays have a high cost. for example, nike spends an additional $4 million per week in extra inventory to compensate for shipping delays. the same report found that a week long disruption at our nation's two largest ports, l.a. and long beach would cost the economy as much as $150 million

per day. meanwhile, supplies change -- meanwhile, supply chains are changing rapidly in response to transportation delays and alternative options. for example, after nine years, the $5.4 billion panama canal expansion is expected to open this week following the project's completion, the panama canal will be able to process ships nearly three times as large as before it will provide a greater connection between our east coast ports and asian export markets, a recent paper co-authored by ch robinson and boston consultion group pointed out that the canal's expansion promises to reorient the landscape of the lodgistics industry and alter the decision making calculus of the shippers that the canal serves. delays in the logistics chain raises costs for shippers,

carriers and consumers. by increasing the connectivity and real time data flows between stake holders, our transportation network and the users will gain productivity. infrastructure design construction, maintenance and safety will also benefit from improved data and connectivity. state and local highway officials constantly face challenges when allocating limited resources to an array of transportation projects. for example, a-com has established a self monitor analysis and reporting technology system known as smart to remote lay monitor bridges, dams and other transportation asseted. they seek to use the internet of things to enhance the operating efficiencies of infrastructure and lengthen the life of the critical assets. real time monitoring represents a critical analytic tool that

can enable states and localities to expend highway dollars in a risk based manner. there by bolstering safety and infrastructure reliability. as part of the fast act, i worked with my colleagues on this committee to author a robust national freight policy that will provide states with greater resources to designate critical urban and rural corridors. congress also expanded the objectives of the intelligent transportation system program which seeks to integrate technology, communications and data into our transportation network to include enhancing our national freight network. senator booker and i have been working together to better understand the possibilities of the internet of things and to educate our senate colleagues on them. i'm pleased that we have an exceptional group of stake holders appearing before the sub committee today. we're fortunate to have officials developing policy at the federal and local levels and

i'm eager to hear how private sector stakeholders are utilizing the internet, data and technology to manage infrastructure projects and advance freight and passenger transportation networks. i would now like to invite my friend senator cory booker, our ranking member for any comments he might have. >> thank you very much, chairwoman fischer, i'm geeking out about this meeting and i think this is tremendous that you're all here. there is a lot going on in washington, laced with lots of partisanship but this hearing right now with my partner on a lot of things, we have found more than what i could have imagined, the chairwoman and i found a lot of things to work on that are forward facing, trying to make not only government more efficient and effective but really, try to echo what was bipartisan work of the past. it was a great republican president named eisenhower who

understood to help private sector flourish, there has to be creative public private partnerships and one of great ways to create connectivity of the past was building roads and bridges to connect our country. well, now we're in an entirely different era, things that i couldn't have imagined when i saw my father bring home the first vcr i had ever seen and plug it into my house, now we have more connected devices on the planet earth than people and we're in the stone age of the internet of things and what excites me is that i have a partner to my right here who understands that if we in government don't get our act together, we'll miss out on not only trying to help the public sector flourish but we'll drag down the private sector because we'll have agencies within the government that are working in silos and tripping up and under mining innovations. i'm excited about the panel because you're on the cutting edge of what is a whole new world and a world that for me,

as a guy who comes from an inner-city and represented that as mayor, i began to see that how connectivity innovation, technology can be be a massive democratising force in many ways in the same way that us building the interstate highway program or by the way, creating the transcontinental railroad which was built in new jersey, so i want to get right to it, i want to thank you all for being here and a lot of things that you're going to say are wisdoms that we've tried to put together in the digit act that the senator and i have together with two of our other colleagues in a bipartisan fashion. welcome to washington. this is really exciting. i don't understand why all of the cameras are on the other side of the capital talking about some place way over on the other side of the world and that there is not more press on this. this will change the life of every american in ways that they

cannot imagine. thank you very much. >> thank you, senator booker, don't you just love it when he geeks out? no, i'm also very excited that we get started and so with that i would like to introduce the panel. we will begin with the honorable carlos monje, the assistant secretary for transportation policy at the u.s. department of transportation. if you would like to give your opening statement. >> thank you. chairman fisher, ranking member booker, members of the sub committee, thank you for inviting me here today. we're getting to a point in history where data is as important as transportation as asphalt. the internet has the ability to slash commute times eliminate traffic accidents reduce co2 emissions and reshape communities for the better. we're beginning to see major advances. connected traffic signals that

detective cars and pedestrians to improve safety and speed traffic. way finding applications that let commuters pick the most convenient way to get around and sensors that help traffic engineers fix and detective structural problems. soon, we'll see increased deployment of technologies that will spread out travel it demand and nudge travellers to make informed choices. we'll see revolutionized lodgistics including robotics, and truck platooning. automated vehicles hold a promise to reduce deadly crashes and reclaim millions of hours of lost time. the president's council on advisories on science and technology said the time regained from not driving could be worth $1.2 trillion a year, not to mention the benefits of reclaiming land from parking spaces. while we know that this transformation will be driven by the private sector, we're doing our part at usdot by building and enabling regulatory environment.

second by never waivering from our focus on safety, security, privacy and equity. and third, by investing in key research and tech deployments, secretary foxx's direction, we're doing everything we can to remove regulatory obstacles to provide the certainty necessary for innovation. nitsa is reviewing the framework making clear to innovators how to seek redress developing a framework for federal and state regulators to work together and identifying new tools. our highways administration is finalizing guidance to road planners to how to legally and effectively install vehicle infrastructure equipment. the federal transit administration is reviewing its rules to participate in the mobility on demand revolution. and as the department enters this brave new world, we're combining the tools we have with the lessons we've learned, starting with a strong partnership with strip and building on a foundation of data

and transparency. we've kept a razor sharp focus on safety, security and privacy. we're working closely with the fdc and pursuing connected vehicles in a way that protects consumers from privacy risks and protects vehicles from hacking, tampering and tracking. we're moving aggressively on a number of fronts to bolster cyber security. nitsa challenged the auto industry to create a center to reduce cyber threats. we've collaborated across all corners of the federal government to give them the ability to manage big data. we're investing in our dollars in a strat yeejic way to fund foundational research, to speed promising technologies to market and to spur the national conversation on the future of mobility. fta's mobility on demand program has an $8 million sand box which will help public industries to partner with emerging options.

fhwa is operating three connected vehicles pilots to speed truck movement in southern wyoming, to improve pedestrian safety in new york city and test mobility apps in tampa. we've developed the fratus which is demonstrating how sensors and date. secretary foxx announced the winner of the smart city challenge, a national competition to transform one mid sized city using advanced data and technology. columbus ohio will receive $40 million from us and a host of partners. the city will deploy electronic self driving shuttles to connect the residents to the dot line and sensors on the city fleet to improve safety and invest in truck platooning and make it easier for delivery vehicles to find parking on city streets and particularly healthcare scheduling to help address high

rates of infant mortality. 78 cities applied. each created a blueprint for the future on city streets. the biggest lesson is technology deployment is not an end to itself but rather a means to build strong communities that create opportunity for all of the citizens. thank you for the opportunity to discuss the provisions and for the sub committee's lieder ship in holding the meeting and introducing legislation for speed planning for the internet of things. i'm glad to answer the questions that you have. >> thank you very much. next we have miss alita reynolds who is the general manager of the los angeles department of transportation. welcome. >> thank you. good morning chairwoman fisher, ranking member booker and thank you so much to you as ranking member nelson to for the opportunity to speak with you today. i'm the general manager of the los angeles department of transportation, i'm also the president of the national association of city transportation officials.

i would like to describe where we are, where we're going and the challenges that we face. city of los angeles is investing millions of dollars into our transportation system to try to evolve our reputation as the car capital of the world into the capital of one of the most modern sophisticated systems in the worl. technology doesn't just change the outcomes in the cities. it changes us as well. it is important for us to stay focused on people first if we want to get to the best and brightest outcomes that are possible. if we rely solely on the private side, those benefits may only land where they benefit the wealthiest among us. our role is to make sure that the rising tide lifts all boats. back in 1984, los angeles hosted the olympics, the hottest gadget was the sony discman and we invisited in an interconnected system of signals called atsac that relied on algorithms to move cars and people through the streets. more than any other city in the country. today, we rely on painted signs

and signals to speak to drivers in the future those, that information will go directly to the vehicles themselves. these digital faces will improve the safe flow of people and goods, light rail and people across the country. they're using apps to navigate our streets. earlier this year, we launched a go l.a. app. it allows you to choose a cheaper, faster, greener way to get from point a to point b. we give a level playing field and let the consumer make the choice about how they want to travel around our city. the next step is to evolve that into a universal payment platform where people can actually make that choice, pay for that choice and be on their way all in the palm of their hand. we're currently launching electric vehicle car sharing in the heart of our city. they have evolved in some areas. we're making this accessible to

people who stand to benefit the most. we're investing public dollars to bring in private sector investment. city government has a powerful role to play to ensure that new services are understandable, legible and accessible. we imbed the needs of older adults, people unfamiliar with smart phones are those that don't have bank cards. we partner with community groups to help people navigate possible language and cultural barriers. we're preparing a pieft of on demand public transit and requesting funds to upgrade signals and streets to hold a central at red if it detectives a driver about to hold the right. turn signals to green for transit and emergency vehicles and alert to right speeds to get a green wave. we're requesting proposals to develop what we call mobility hubs throughout the city to bring car share, bike share and real time transit information to travellers. our interest is to use technology to treat people with hospitality. we want it to be a convener and not a splitter. older technologies are

reemerging in new and interesting ways. we're outfitting the city buses with wifi. bikes are being electrified to make it a more fun way to travel. signals are becoming smarter to help emergency responders and transit be more efficient than ever before. i want to under score that the technologies of today are not static and we don't want to become too wetted to one mode or pick winners or losers. they may reduce the number of human errors but may habe expensive to own. technologies such as alternative fuels and shared mobility will change the funding framework. we hope we can work closely with u.s. partners to continue to have a conversation about initiative funding and direct aid to cities about realigned and flexible funding, about

requiring technology to be built into transportation at the most fundamental levels. and to pivot from expansion and to modernization and management. fixing it first and making the infrastructure smarter rather than continuing to invest in expansion. data sharing is key to us. ongoing investment into mass transit like high capacity rails because one of the most precious resources in cities will continue to be space. and preparing our work force. as you can see, l.a. is an exciting place to be right now. we know that great cities generate traffic but traffic doesn't generate great cities. technology has the power to help communities see their vision. taking back space. i want to thank cathe ability t testify. we need the federal government to work with us on funding, standardizing and exploring the future. >> thank you very much. next i'm going to go to mr. doug davis who is the senior vice

president and general manager of intel corporation. welcome. >> good morning chairwoman fischer, ranking member booker. i appreciate the opportunity to be able to testify this morning. as head of intel's iot group, i'm responsible for the iot strategy and under lying technologies, in all of that includes transportation and automotive. intel has been differing integrated commuting for things for over 35 years the investment, innovations provide the foundational elements of that iot strategy. intel defines iot as devices securely connected through the network through the data center or cloud and it is the data from these things that can be shared and analyzed today solve problems. we believe that security is the foundation of the internet of

things. our hardware and software were designed to be secure. to be se. we build security in the way we design our chip. we build security in the layers of software of things as well as those things moving into the clouds. we realize that safety and security are essential. transportation is one of the most promising sector of iot. >> idc projected of global avenue reaching $325 billion by the year 2018. by converting vast amount of data into meaningful and questionable questions, of supporting solutions and in terms of transportation safety and efficiency and mobility and some of the infrastructure challenges, transportation sector is at the heart of the global race for iot leadership.

that race is very competitive. in addition to the u.s., we have seen self driving car trials on public road in the uk and china and germany and switzerland and japan, sweden, netherlands and d dubai. autonomous vehicles -- powerful vehicle competing and capabilities to calculate those vehicle trajectory in secure high speed and reliability back to the clouds. they'll need to be making smarter and skilled decisions. cars will be done as data center on wheels.

in order for us to occur autonomous and 5 g technology will involve. because we are going to have vast global industry support and rapid marketplace adoption. autonomous vehicles -- the average american commuters spend 38 hours per year stuck in traffic which cost u.s. economy about $121 billion per year in just wasted time and fuel. the u.s. transportation industry alone can save $168 billion per year in fuel reduction and not to mention the benefit in reducing harmful emissions. for the u.s. to lead the world in iot transportation and captures these economic and society benefits that a modernimoder modernized infrastructure, intel

collaboratei cl collaborating with high-tech, based on five principles. number one, prioritize safety reducing the number of s severity of crashes. prioritize security of the out set and technology by relying on marketplace and competitions. encouraging open global standards based on transportation platform to enable a commercialization that's reusable across deployment. number five, invest in public private partnership. especially in the areas like 5 g, developing trust data and secured computing, open standards and of course, security. so i want to thank you for the opportunity to share intel's policy recommendations for u.s.

iot transportation leadership. i look forward for questions later. >> thank you, very much. >> next, we have doctor robert, and senior vice president of ae com com. >> chairman and members of the subcommittee. i would like to thank you for the opportunity to testify of the advancement of new technologies to enhance our transportation and infrastructure across the country. we integrate and designed and built. we rank number one in transportation as well as our global market second stors. over the years, we see tmz evolves becoming to multi

dimensional. we can stay ahead of congestion rather than reacting to it. icon is a global leader of tmz and areas of operations where we operated over 40 facilities throughout the united states. in california, we developed the dynamic software to support the systems and in virginia, we operated the reversible road way systems and in new jersey, we work with ibm and we developed the management system software and positioning themselves in decision support systems in the fru future. in michigan, we operated four emc's and we are operating the gateway tmz which will be accommodating the growth of tomorrow's program in the near futures. >> the pace of change in the

area creating expansive technology and partnership. it allows communities to build upon the previous efforts across the country. it comes collaborated with software and ibm working with smart city projects over in india as well as the work we have done in new jersey. our next month we were selected and start to work with the colorado department of transportation on the road x program. we have been supporting the missouri d.o.t. on their road to tomorrow program in coming up wp new technology partnerships and new innovations. the internet of things providing tmz to grow. as no one owns the internet, information and control is transmitted and the same can be said of the internet of things, about 75 million servers is operating the global internet of

1.2 billion cars on a road way system throughout the world and more than 20% here in the united states. cars are parked 95% of the time. our transportation system is outside peak hours and it is significantly under utilized. >> if we understand the issue of the decentralization that created the internet many decades ago. iot approaches will allow people in car goes to be transported more efficiently and the designated pick up and drops all the time. >> this will enable balancing of realtime travel time, it will enable a balancing of transportation supply and demand in realtime and allow users to optimize their trips based on what rides they use and the schedules and the routes.

in recent years there is been several -- smart motor ways and now most of the attention is being the focused in on the connected autonomous vehicles. >> i would like to read with you my vision of the future for the tmz of the future with my perspective. the tmz of the president continues to focus on traffic operations and safety and rightfully so. while the tmz future will start to accommodate these next generations and management and effort. the internet of things will start to group a of transportation and not transportation functions together. while the -- there are disadvantages and advantages to both the growths.

so i ask you that you consider the tmz of the future when we start building our smart cities and my testimony that i am submitting for the record that i would like you to consider as you deal with issues in the future. so on behalf of acon, i would like to thank you for your testimonies and looking forward to your conversations. >> next, the president of ch robertson, welcome. >> chairman fisher and members of the the transfer committee, thank you for the opportunity to testify today. >> my name is jordan kass and i am president of ch robertson. i joined in 1999. i created a start up in robinson

trying to figure out how to leverage internet technology in the supply change. today, that started a business managements that'll expand on bafr of our customers. our mission is to develop platforms and helping our customers connect and optimize their supply change. today we are also speaking on behalf of the transportation association which represents 1500 of three pls of all sizes. building service that is streamlined and management on behalf of our customers. we include motor carriers and railroads and ocean racarrierca. this platform that we develop,

this company used to gain visibility and over our supply change. our customers including microsoft and ocean spray. it is routing a massive amount of information quickly a accurate around the world. data and the internet of things are driving change in our business. we are expanding these across the supply change. a single truck on our operator uses our app to check in like a gps and a local shipper can view tracking updates anywhere in the world via pc or smart phone or a tablet. this is a team of coordination and sales and they work together

of this response. we see things differently from a supply change and flow of goods viewpoints. today, others have discussed privacy and it infrastructure. we think that congress needs to look at practical issues regarding movements brought about by the internet of things. before we understand that the subcommittee does not have the jurisdiction of things. we want to reiterate of the greatest challenge of congress and subcommittee may have with the internet things that'll force the government will be working across silos or left behind. the following are our recommendations. first, tax rates. many of the companies leading the revolution around the internet of things are designed for the 1980s. ch robertson is a company with no assets and we pay full corporate u.s. tax of 35%. we are 100 corporate taxpayer.

world class custom agency. when the e system goes down for two san diego, it i impacts supply change. increasing resources. cargo thieves are using internet to target. use of landing around city increasingly moving between a handful of global cities and seeing huge population and density growth and new york and

la. issue of land use and truck p k parking and congestion and all interacting of the growth of things and the speed of change and delivery direct to the consumer. thank you for the opportunity. the internet of things are impacting of change. we look forward to a policy. >> thank you very much. >> thank you very much to the entire panel. we'll begin our first round of questions, five minutes for each member. i would like to start with one issue that i have been concerned about and that's the creation of these regulatories. i am worried about the lack of coordination between government agencies where we may see duplications taken place. when my ranking members and i and two other senators introduced the digit act, one

thing we want to be sure to do was have a work created. that's a working group of government. we want to make sure that we can look at streamlining and having complementary regulations between agencies when we address the internet of things. i would like to ask the panel, what -- what do you think is the best way that we can encourage agencies and look at how best to allow the innovation to create creativity to continue to take place of the internet of things. >> yes, doctor. >> i think the department of

transportation including the u.s. department of transportation has taken that first step and that's transportation system management and operations. the way i look at it is tsmo and iot, it is really going to unleash unlimited potential. with management operations focused in creating integration between the partners whether there will be buses or trains or toll roads or freeways. it is also aligned with metrics so everybody has some skin in the game with regards to defining what those performance metrics and tracking those metrics and making sure that we are making certain improvements that's noticeable by the end users which is the traveler. again, it is not a regulatory issue.

that's starting to come together rapidly. >> mr. davis. >> i think you are asking a great question. let me touch on a couple of things. first, i want to applaud the work that's been done with the goal that's trying to achieve. that's very important direction for us taking with the regards of things. optimizing of what's happening in the retail. i think that's been natural of the evolution but as we think forward around the internet of things. that'll be one of our challenges is to have these local optim

optimalizatio optimalizatiooptima optimalizatio optimalizatio optimalization. that's why we are advocating of open platforms and allowing a much greater flexibility to break down some of those. that'll be essential for the internet of things to scale. we look at five g technologies and we are looking at -- we are driven by public partnerships and finding the right capabilities as we go forward in the internet of things. >> you think we are going to have to see a collision take place before we will have that openness or will we be proactive in trying to headed off before we get there. >> obviously, i am hoping that we can be proactive and avoid of collision. i think it is important to think about this globally and think about what's happening in other parts of the world and have that

national iot strategies for the u.s. to be in a leadership position. i think as far as -- we can think ahead and that'll involve th involve-- avoid collision. >> i am running out of time but the other three witnesses can give me a better answer. >> it is something we have been driven to do in the white house and we are working closely with the federal trade commission. we are working closely with them and national ntia on cyber security broad band access and fcc when it comes to spectrum. we are not lonely reaching across but down in the states as well and it is establishing there regulatory firm work and we are working closely in the states. >> miss reynolds did you have a

question. >> it is something we have been strasburgi struggling for a long time. it is the way we measure success and often at odds and at point of having a shared metrics. the road to funding is paid with partnership and if you want to be at the table, you need to bring private partners along with you. you need to bring the state and the region and are bringing up some very uncomfortable -- so i think that is one of the major ways, there is been kind of a happily forced, arranged marriage among different sectors. >> mr. kass, shortly. >> my expertise is supply change and technology and it is not government. having said that -- >> you are the first one

answering the question. >> having said that, i think if these walls need to be broken down. if we don't do these, what's going to happen is that there are two supply change that works. there is a physical one and a virtual one. the virtual supply change is about moving information and money. in the internet of things that's going to be visible. if we don't fix this problem, all of the problems that exists today of the node and the failure nodes, those are going to be exploded on a massive scale. we got to get out of it quickly. thank you very much. >> senatoor booker. >> so when i was mayor of my city, i discovered of getting my accountability from my team members that if i started encouraging constituents to tweet me problems, i can find out about potholes before my jr. and i start crowd sourcing what

would go wrong in the city. that's a rudimentary way when you -- where you can have center detecting problems and information at the speed of ligh lights. would you please give the mayor my best when you get back to los angeles. i studied with him in oxford and he still owes me ten pounds. tell him that i want my money. >> well done. >> would you tell me what kind of challenges you guys are facing in implementing whether it is a cutting edge vision in trying to make los angeles. what are some of the biggest obstacle to be the smartest city that you find. >> thank you for the question. it is two things. one fundamentally, public and private side are going to have way out side of our comfort zone in order to achieve the service that we need. procurement practices, is the

single biggest hurdle to get public partner service in the tab table. technology has passed us by. other transmission and others have done a good job csignaling. i would identify that. second, i would say that you know the role of government is that we can or most rudimentary tool is we can say no. oftentimes we find ourselves in the position that we are encountering new technology in the cities. we need to pivot using one of other lesser used power of government to convene and to regulate and to make sure that the price of entry into our city is that you have to serve them e

quitly. one of four drivers of los angeles is using waze to get around the city with positive and potentially negative impact. the way that we have been using it is bringing waze data and fusing the data stream that we have to make our system smarter. we say los angeles drivers over 40 hours every year because we have a smart transportation signal system. that is just a tip of the iceberg and it points to other big challenge is that we don't have the skills set inside the government. i don't have certification for data scientist in the city of los angeles. we desperately need those kind of skill sets inside the government so we can come to the table as an equal partner. >> i appreciate that. procurement is one of the biggest problems that we have and problems setting up with dealing with big, massive companies. i appreciate that and one minute

and 30 seconds that i have left. mr. kass and davis, i get ann annoyed when i watch other countries innovating us. we should be the capital innovation of the globe. the droning industry and watching innovation of that sector going out and going over to europe as oppose to here because we have not created an environment that's best for that. the two men who are in the private sector, could you guys just tell me what are other countries doing better than us that we should be doing better than them? >> i am sorry. >> i think it is a great point. that's one of the reasons we have been advocating for public partnership to be able to bring private industry alongside of what's happening from a regulatory standpoint. also, what's happening and being able to provide those kinds of partnerships to go behind what needs to happen. again, the emphasis is on what as oppose to the various

specific how of the implementations. that's what we often find happening when we try to put regulations in place as technology is still rapidly changing. that's one of the things we find as we look at what's happening globally is the opportunity to innovate much less openly. >> jordan, why don't you hold on. i don't want to make her angry. i will let her go and we'll come around another round of that. >> thank you madame chair and thank you to the panelists. is it monet? >> thank you for your work. i wanted to talk to you and mr. davis about freight because this is something that we want to be statist strategic in the united states and the opportunity to ship more goods and very important economic strategy for us and having to move in a timely

fashion and a lot of challenges. how is the department of transportation, we have had this new of this strategic plan, how are you working of the internet of things, we have one of the california ports here last year and they talked about the efficiency that you can rule out at our port by having this kind of data and information on car go movements and on trucks. >> yes, ma'am. >> thank you for the question and fright is the lifeline of our economy. this economy is really pushing us, this department to come up with this strategic plan to work with states in terms of the internet of thingthings, i knowl see 45% more on our roads and ports. some of this i thinngs we are d improving ting testing and improvement of our quality and it is helping operators to get

car go off of ship and where they need to go quicker. we got a connected vehicle in wyoming that's focusing on speeding truck traffic along interstate 80 which has a major weather events so how we are using technology to move it forward. we got a lot of really neat examples of committees trying to figure out themselves. columbus is proposing and they want to implement the ability to practice along smart corridor and better way to do urban parking. one of the neater ideas came from austin sharing urban delivery lockers chl. people will be able to picking up grocery and packets so they don't have to -- >> mr. davis, i