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NEWS AND VIEWS,
TRENDS AND TACTICS, STRATEGIES, INSIGHTS, ADVICE,
LEGISLATION, REGULATIONS AND MORE
“There are tremendous
opportunities for telco, Internet and
technology companies to expand into the K-12
educational market,
using telephone fees to serve schools and
libraries.”
—Cynthia Schultz, on opportunities from
the E-rate program
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New Rules for a New Election
Hoping to get your
policy message across this year? Then take
note: The rules of the game have changed,
says
William McGinley, an attorney at Patton
Boggs who specializes in political law.
Approved by Congress
last year in the wake of recent
congressional scandals, the Honest
Leadership and Open Government Act is meant
to bring accountability and transparency to
the lobbying process. The sweeping new law
requires increased disclosure of the
coalitions that control direct lobbying
efforts, a cooling-off period for members of
Congress and their staff seeking to become
lobbyists, and gift and travel restrictions.
The other big change
comes from the Supreme Court. Previously,
the Federal Election Commission barred
corporations and trade associations from
using general treasury funds to finance
broadcast ads that name federal candidates
who happen to be current officeholders
within 30 days of a primary election or 60
days of a general election. In Wisconsin
Right to Life v. FEC, however, the Supreme
Court found that the regulation ran afoul of
the First Amendment and relaxed the
restriction.
“Corporations,
trade associations and other policy
stakeholders now have greater opportunities
to communicate their policy messages, even
in an election year,” McGinley says. The
rules of both reforms are quite involved.
“Do your homework, and plan your lobbying
and communication efforts carefully,”
McGinley says. CT
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And Broadband
for All
It’s easy to
complain about all those puzzling
surcharges found on phone bills. But
hidden in one of those charges is a
story that speaks of opportunity for
schools, libraries, hospitals and those
businesses that are savvy enough to take
advantage of it. It’s called the
Universal Service fee, and its proceeds
help ensure affordable
telecommunications service for rural and
low income consumers, in addition to
Internet access and network
infrastructure for rural health care
programs, schools and libraries.
Federal
legislators who helped establish the
Universal Service Fund as part of the
1996 Telecommunications Act say the
Program has helped 97 percent of public
schools attain Internet access.
But the
statistic is misleading, says
Cynthia
Schultz, a Patton Boggs partner and
expert on the Universal Service Fund’s
Schools and Libraries Program, known as
E-rate. For example, many rural public,
private and charter schools still rely
on sluggish connections which rule out
online and distance learning
opportunities.
Rural health
care could also benefit from the
Universal Service fee. Remote areas can
get a dose of big-city health care
expertise through videoconferencing and
data-sharing. But telemedicine, as it is
known, requires high bandwidth
capabilities.
Last year, the
FCC dedicated $417 million for building
state and regional telehealth networks
in 42 states. “The telecom industry
should be thinking about configuring for
telemedicine in their future network
designs,” Schultz advises.
The $7 billion
Universal Service Fund could be
important in helping the U.S. catch up
to other developed nations in broadband
connectivity, Schultz says. But many
schools, libraries and health care
providers don’t apply for funding. And
even many eligible service providers are
not aware of the Universal Service
Program’s benefits. “This is a great
opportunity for businesses,” Schultz
says.
Applying for
E-rate funding is not always easy,
Schultz warns. The General
Accountability Office, a federal
watchdog, has accused the USF fund
administrator—the Universal Service
Administrative Company—of lacking
“managerial and financial
accountability.” Schultz recently
facilitated the founding of the E-Rate
Service Providers Association, which
advocates for better program
administration. Nevertheless, Schultz
advises service providers not to be
deterred: “There are lots of needy and
underserved schools and libraries in
America that can use this funding to pay
for your products and services.”
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Green Building: LEED—or Get
Out of the Way
Executives
intent on greening their operations are getting a
fast education in the U.S. Green Building Council’s
Leadership in Energy and Environmental Design, or
LEED, standard. Beyond the environmental benefits,
moving into a LEE D-certified building—or renovating
to the LEED standard—is a great way to show off your
green credentials with customers and clients, says
Yost Conner, leader of the real estate practice
group at Patton Boggs.
If that isn’t
reason enough to go LEED, local governments are
starting to force the issue. Last year, Washington
became the first major city to mandate LEED
compliance for private projects. Other cities are
giving preference to LEED developers through
expedited permitting, density bonuses and even grant
programs, Conner says.
But installing
the cutting-edge designs and systems that earn LEE D
certification comes at a cost—anywhere from 3
percent to 10 percent of a premium over typical
building costs, by many estimates. So Conner has a
few nuggets of advice for any executive seeking the
best LEED certification for the dollar:
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If you’re a
tenant building out your space, scrutinize your
lease. Who is responsible for the various
measures needed to ensure LEED compliance, such
as implementing recycling programs or using
proper building materials? Make sure you know
exactly what measures must be adopted, and that
task divisions and cost responsibilities are
clear.
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If you are
commissioning a new building, choose a designer
with plenty of LEED experience. He or she will
know the most cost-efficient way of earning the
most points toward certification. Then, work
closely with the designer to ensure that the
measures fit with your organization’s culture.
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Recognize
that even if the upfront costs of building green
are higher, you may see long-term savings in your
energy and water bills. And healthier buildings
can boost employee productivity. So have your
financial planners do a lifecycle analysis of
total costs over 10 to 15 years. This may make
certification more palatable to skeptics on your
board or in the organization.
CT
Secrets of the
Trade
Like many technology-dependent firms, energy
services provider Halliburton must be vigilant about
intellectual property theft, including theft from
within. If an employee walks off with information on
seismic mapping software or specialized oil tools,
it could blunt the firm’s competitive edge.
“Intellectual property is our lifeblood,” says Bill
Imwalle, Halliburton’s assistant general counsel for
IP. Here’s how Imwalle helps to protect trade
secrets at the Houston-based company:
All new employees must sign an
IP agreement governing both internal assets and
customer and vendor information.
“This serves as the
foundation of the entire program, setting forth
employee obligations with regard to trade
secrets,” Imwalle says.
All employees must attend
regular training sessions for refreshers and any
updates on their IP responsibilities under the
agreement.
Information is closely protected. Data is typically
released only to those who “need to know.” Admission
to labs is highly restricted. Passwords protect the
computer network, and suspicious online activity can
be traced. And e-mail is not sacrosanct:
“While we respect the
individual, employees should have no expectation
of privacy for their corporate e-mail.”
Departing employees are a
concern, especially because the energy services
field faces an aging workforce. Retirees may move on
to consulting positions or even to competitors.
“Exit interviews serve
to reinforce the trade secret message—and in
some cases, to test out suspicions,” Imwalle
says. CT
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