Wednesday, March 26, 2014

SEC COMMISSIONER AGUILAR SPEAKS ON GROWING CYBER-THREAT

FROM:  SECURITIES AND EXCHANGE COMMISSION 
The Commission’s Role in Addressing the Growing Cyber-Threat

Commissioner Luis A. Aguilar

March 26, 2014

*I would like to start by welcoming each of the participants, audience members, and those joining us by webcast.

In recent months, cybersecurity has become a top concern to American companies, regulators, and law enforcement agencies.[1]  This is in part because of the mounting evidence that the constant threat of cyber-attack is real, lasting, and cannot be ignored.

One of the most prominent examples of the wide-ranging and potentially devastating effects that can result from cyber-attacks is the December 2013 data breach of Target Corporation.[2]  In addition, several large banks have repeatedly been the subject of denial-of-service attacks in which their public websites have been knocked offline for hours at a time,[3] and numerous government agencies have also experienced a series of cyber-attacks.[4]  Moreover, cyber-attacks on financial institutions have become both more frequent and more sophisticated.[5]  This is also true of cyber-attacks on the infrastructure underlying the capital markets.  For example, according to a 2012 global survey of securities exchanges, 89% identified cyber-crime as a potential systemic risk and 53% reported experiencing a cyber-attack in the previous year.[6]

As an SEC Commissioner, I have become particularly concerned about the risks that cyber-attacks pose to public companies, and to the capital markets and its critical participants, including the exchanges, clearing agencies, transfer agents, broker-dealers, and investment advisers.  Cyber-attacks aimed at these market participants can have devastating effects on our economy, on individual consumers, and on the markets and investors that the SEC was created to safeguard.

There is no doubt that the SEC must play a role in this area.  What is less clear is what that role should be.  As many of you know, in 2011 the staff issued guidance to public companies about their disclosure obligations with respect to cybersecurity risks and cyber incidents.[7]  I hope that these disclosures have helped investors and public companies to focus and assess cybersecurity issues.  However, the increased pervasiveness and seriousness of the cybersecurity threat raises questions about whether more should be done to ensure the proper functioning of the capital markets and the protection of investors.

As I explored this issue, it became readily apparent to me that the Commission has much to learn about the specific risks that our regulated entities and public companies are facing.  After conducting research into this area, I recommended that the Commission convene a roundtable so that we can begin to develop a better understanding of this growing problem.  I am pleased that Chair White agreed with my recommendation and asked the staff to make this roundtable a reality.

The issues that will be discussed by today’s four panels can roughly be broken down into two categories – issues potentially impacting public companies and issues impacting the capital market infrastructure and SEC-regulated entities.  With regard to the public company discussion, I am particularly interested in hearing whether the current disclosure regime under the 2011 guidance is working or how it could be improved.

The risks facing the capital market infrastructure and regulated entities are of particular concern to the SEC.  For instance, a cyber-attack on an exchange or other critical market participant can have broad consequences that impact a large number of public companies and their investors.  Indeed, given the extent to which the capital markets have become increasingly dependent upon sophisticated and interconnected technological systems, there is a substantial risk that a cyber-attack could cause significant and wide-ranging market disruptions and investor harm.

I am hopeful that today’s Roundtable will engender significant discussion about the ways in which regulators and industry can work together to address these risks.  One of the most important things that can develop from this Roundtable is for the Commission to hear what we can do to help you fight, and respond to, the growing cyber-threat that is confronting our markets and our public companies.  My expectation is for the Commission to analyze all of the information we will receive as a result of this Roundtable and, with appropriate haste, consider what additional steps the Commission should take to address cyber-threats.

It will be important to keep the dialogue and momentum from today’s event going.  One immediate step the Commission should take is to establish a Cybersecurity Task Force.  This Task Force should be composed of representatives from each division that will regularly meet and communicate with one another to discuss these issues, and, importantly, advise the Commission as appropriate.

In conclusion, I would like to thank all of our panelists for taking the time to be here today, and I want to thank the staff for organizing the Roundtable.  I look forward to a well-informed discussion about cyber-attacks, as well as the ways to prevent, respond to, and mitigate the risks of such attacks.  As a reminder, there will be a public comment file associated with today’s Roundtable, and I look forward to receiving additional comments and input on this issue.

Thank you.


[*] The views I express today are my own, and do not necessarily reflect the views of the U.S. Securities and Exchange Commission (the “SEC” or “Commission”), my fellow Commissioners, or members of the staff.


[1] For example, on February 26, 2014, the U.S. Commodity Futures Trading Commission (“CFTC”) published guidance outlining the data security practices it expects from firms it oversees and the third parties they contract with.  See CFTC Staff Advisory No. 14-21, Gramm-Leach-Bliley Act Security Safeguards (Feb. 26, 2014), available at http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-21.pdf.  In addition, the Director of the Federal Bureau of Investigation (FBI), James Comey, said last November that “resources devoted to cyber-based threats will equal or even eclipse the resources devoted to non-cyber based terrorist threats.”  See Testimony of James B. Comey, Director, Federal Bureau of Investigation, before the Senate Committee on Homeland Security and Governmental Affairs (Nov. 14, 2013), available at http://www.fbi.gov/news/testimony/homeland-threats-and-the-fbis-response.  Also, on December 9, 2013, the Financial Stability Oversight Council held a meeting to discuss cybersecurity threats to the financial system; see also, U.S. Department of the Treasury Press Release, Financial Stability Oversight Council (FSOC) to Meet December 9 (Dec. 2, 2013), available at http://www.treasury.gov/press-center/press-releases/Pages/jl2228.aspx; Jaclyn Jaeger, “Boards Look to Boost IT, Data Security Oversight,” Compliance Week (Mar. 11, 2014) (noting that company boards have become much more sensitive to cybersecurity risks and the harm they could cause to a company’s reputation and business).  The importance of this issue is also reflected in the recent notices that the staffs from the SEC’s Office of Compliance Inspections and Examinations and from FINRA will have cybersecurity as a focus of their 2014 examinations.  See SEC’s National Examination Priorities for 2014 (Jan. 9, 2014), available at http://www.sec.gov/about/offices/ocie/national-examination-program-priorities-2014.pdf; FINRA’s 2014 Regulatory and Examination Priorities Letter (Jan. 2, 2014),  available at http://www.finra.org/web/groups/industry/@ip/@reg/@guide/documents/industry/p419710.pdf.   In addition, it was recently announced that SEC examiners will review whether asset managers have policies to prevent and detect cyber-attacks and are properly safeguarding against security risks that could arise from vendors having access to their systems.  See Sarah N. Lynch, “SEC examiners to review how asset managers fend off cyber attacks,” Reuters (Jan. 30, 2014), available at http://www.reuters.com/article/2014/01/30/us-sec-cyber-assetmanagers-idUSBREA0T1PJ20140130.

[2] On December 19, 2013, Target Corporation announced a data breach resulting from a cyber-attack on its systems.  The breach affected two types of data: payment card data, which affected approximately 40 million Target customers, and certain personal data, which affected up to 70 million Target customers.  See Testimony of John Mulligan, Executive Vice President and Chief Financial Officer of Target, before the U.S. Senate Committee on the Judiciary (Feb. 4, 2014), available at http://www.judiciary.senate.gov/pdf/02-04-14MulliganTestimony.pdf; Target Press Release, Target Confirms Unauthorized Access to Payment Card Data in U.S. Stores (Feb. 4, 2014), available at http://pressroom.target.com/news/target-confirms-unauthorized-access-to-payment-card-data-in-u-s-stores..

[3] See, e.g., Joseph Menn, “Cyber attacks against banks more severe than most realize,” Reuters (May 18, 2013), available at http://www.reuters.com/article/2013/05/18/us-cyber-summit-banks-idUSBRE94G0ZP20130518; Bob Sullivan, “Bank Website Attacks Reach New Highs,” CNBC (Apr. 3, 2013), available at http://www.cnbc.com/id/100613270.

[4] See, e.g., Jim Finkle and Joseph Menn, “FBI warns of U.S. government breaches by Anonymous hackers,” Reuters (Nov. 15, 2013), available at http://www.reuters.com/article/2013/11/15/us-usa-security-anonymous-fbi-idUSBRE9AE17C20131115 (activist hackers secretly accessed U.S. government computers in multiple agencies, resulting in stolen data on at least 104,000 employees, contractors, and others associated with the Department of Energy, along with information on almost 2,000 bank accounts); “HealthCare.gov targeted ‘about 16 times’ by cyberattacks, DHS official says,” NBCNews.com (Nov. 13, 2013), available at http://www.nbcnews.com/news/investigations/healthcare-gov-targeted-about-16-times-cyberattacks-dhs-official-says-v21440068.

[5] For example, on December 9, 2013, the Financial Stability Oversight Council held a meeting to discuss cybersecurity threats to the financial system.  See U.S. Department of the Treasury Press Release, Financial Stability Oversight Council (FSOC) to Meet December 9 (Dec. 2, 2013), available at http://www.treasury.gov/press-center/press-releases/Pages/jl2228.aspx.  During that meeting, Assistant Treasury Secretary Cyrus-Amir-Mokri said that “[o]ur experience over the last couple of years shows that cyber-threats to financial institutions and markets are growing in both frequency and sophistication.”  See U.S. Department of the Treasury Press Release, Remarks of Assistant Secretary Cyrus Amir-Mokri on Cybersecurity at a Meeting of the Financial Stability Oversight Council (Dec. 9, 2013), available at http://www.treasury.gov/press-center/press-releases/Pages/jl2234.aspx.  In addition, in testimony before the House Financial Services Committee in 2011, the Assistant Director of the FBI’s Cyber Division stated that the number and sophistication of malicious incidents involving financial institutions has increased dramatically over the past several years and offered numerous examples of such attacks, which included fraudulent monetary transfers, unauthorized financial transactions from compromised bank and brokerage accounts, denial of service attacks on U.S. stock exchanges, and hacking incidents in which confidential information was misappropriated.  See Testimony of Gordon M. Snow, Assistant Director, Cyber Division, Federal Bureau of Investigation, before the House Financial Services Committee, Subcommittee on Financial Institutions and Consumer Credit (Sept. 14, 2011), available at http://www.fbi.gov/news/testimony/cybersecurity-threats-to-the-financial-sector.

[6] See Rohini Tendulkar, “Cyber-crime, securities markets and systemic risk,” Joint Staff Working Paper of the IOSCO Research Department and World Federation of Exchanges (July 16, 2013), available at http://www.iosco.org/research/pdf/swp/Cyber-Crime-Securities-Markets-and-Systemic-Risk.pdf.  Forty-six securities exchanges responded to the survey.

[7] On October 13, 2011, staff in the Commission’s Division of Corporation Finance (Corp Fin) issued guidance on issuers’ disclosure obligations relating to cybersecurity risks and cyber incidents.  See SEC’s Division of Corporation Finance, CF Disclosure Guidance: Topic No. 2—Cybersecurity (“SEC Guidance”) (Oct. 31, 2011), available at http://www.sec.gov/divisions/corpfin/guidance/cfguidance-topic2.htm.  Among other things, this guidance notes that securities laws are designed to elicit disclosure of timely, comprehensive, and accurate information about risks and events that a reasonable investor would consider important to an investment decision, and cybersecurity risks and events are not exempt from these requirements.  The guidance identifies six areas where cybersecurity disclosures may be necessary under Regulation S-K: (1) Risk Factors; (2) Management’s Discussion and Analysis of Financial Condition and Results of Operation (MD&A); (3) Description of Business; (4) Legal Proceedings; (5) Financial Statement Disclosures; and (6) Disclosure Controls and Procedures.  The SEC Guidance further recommends that material cybersecurity risks should be disclosed and adequately described as Risk Factors.  Where cybersecurity risks and incidents that represent a material event, trend or uncertainty reasonably likely to have a material impact on the organization's operations, liquidity, or financial condition—it should be addressed in the MD&A.  If cybersecurity risks materially affect the organization’s products, services, relationships with customers or suppliers, or competitive conditions, the organization should disclose such risks in its description of business.  Data breaches or other incidents can result in regulatory investigations or private actions that are material and should be discussed in the Legal Proceedings section.  Cybersecurity risks and incidents that represent substantial costs in prevention or response should be included in Financial Statement Disclosures where the financial impact is material.  Finally, where a cybersecurity risk or incident impairs the organization's ability to record or report information that must be disclosed, Disclosure Controls and Procedures that fail to address cybersecurity concerns may be ineffective and subject to disclosure.  Some have suggested that such disclosures fail to fully inform investors about the true costs and benefits of companies’ cyber security practices, and argue that the Commission (and not the staff) should issue further guidance regarding issuers’ disclosure obligations.  See Letter from U.S. Senator John D. Rockefeller IV to Chair White (Apr. 9, 2013), available at http://www.commerce.senate.gov/public/?a=Files.Serve&File_id=49ac989b-bd16-4bbd-8d64-8c15ba0e4e51.

PRESS GAGGLE WITH BEN RHODES

FROM:  THE WHITE HOUSE 

Press Gaggle by Deputy National Security Advisor for Strategic Communications Ben Rhodes

Aboard Air Force One
En Route Brussels, Belgium 
March 25, 2014

9:19 P.M. CET

Q    And comments on the denial of a Saudi visa to the Jerusalem Post Washington’s bureau chief?

MR. RHODES:  I'll say basically what we said, which is that we were very disappointed by the Saudi decision.  We expressly reached out to the Saudi government through multiple channels when we became aware of this issue.  We made it clear how important it was to us that this journalist, like any other journalist, have access to cover the President’s trip.  And we'll continue to raise our concerns with the Saudis about why this journalist was denied a visa and about our very strong objections to their decision.

Q    What was the reason?

MR. RHODES:  They did not give a reason.  Again, any journalist should be able to cover the President’s trip if they have the appropriate credentials to do so, and it certainly should not be the case that the affiliation of a journalist should in any way count against their ability to do their job just because they work for the Jerusalem Post.

Q    That didn’t cause you guys to reconsider going to Saudi Arabia or anything like that?

MR. RHODES:  No.  Look, we have disagreements with Saudi Arabia on a number of issues.  We obviously have had disagreements in the past as it relates to some issues associated with Israel, some issues associated with human rights.  But we also share a significant set of interests with Saudi Arabia.  They’re a very important partner of ours in the Gulf, and we believe it's better to have the type of relationship where we can cooperate but also be clear and honest with one another where we have differences.

Q    Thanks, Ben.

END
9:21 P.M. CET

WHITE HOUSE ISSUES U.S.-EU COUNTERTERRORISM COOPERATION FACT SHEET

FROM:  THE WHITE HOUSE 

FACT SHEET: U.S.-EU Counterterrorism Cooperation

The United States and the European Union are committed to working together to protect our citizens against terrorist attacks.  We work in close cooperation, bilaterally and multilaterally, to safeguard the security of our citizens in keeping with our shared values and to offer assistance to other countries to build their own capacity.
Collaboration in the Global Counterterrorism Forum Framework
The United States and the EU are among the most active members of the Global Counterterrorism Forum (GCTF), a multilateral counterterrorism body with 30 worldwide members, designed to address counterterrorism threats and build international capacity.  The United States and the EU jointly support work in all areas of the two working groups focused on Africa:
  • Horn of Africa Region Capacity-Building Working Group:  focuses on law enforcement, criminal justice and the rule of law, border management, countering violent extremism, and countering terrorist financing.  
  • Sahel Region Capacity-Building Working Group:  focuses on police cooperation, building legal and judicial cooperation, border security, community engagement to counter extremism, and countering terrorism financing. 
The United States and the EU also continue to collaborate on three GCTF-inspired institutions, and will serve on the governing boards of and provide financial support to all three institutions:
  • Hedayah:  Hedayah is the first and only international center of excellence on countering violent extremism (CVE).  We will jointly support Hedayah’s efforts, and the United States is funding curriculum development and CVE training.
  • Global Community Engagement and Resilience Fund:  This fund, a public-private global venture, will support grassroots efforts to counter violent extremism.  The United States and EU have committed to supporting this fund’s development and operations. 
  • International Institute for Justice and the Rule of Law:  Headquartered in Malta, this institute will train criminal justice officials in North, West, and East Africa, with a particular focus on countries in transition, to counter terrorism and handle transnational security challenges while respecting human rights.  The United States and the EU have agreed to provide resources and technical support.
Cooperation on Countering Violent Extremism and Foreign Fighters
We share a common understanding of how terrorists exploit underlying conditions to recruit others to their cause.  The United States and EU have increased transatlantic cooperation on both stemming the flow of foreign fighters and reintegrating them when they return.  We aim to counter violent extremism by providing positive alternatives to communities most at risk of recruitment and radicalization to violence; counter terrorist narratives; and build the capacity of government and civil society to counter violent extremism.
  • Balkans:  The United States and the EU are committed to building the capacity of Balkan governments and civil society to counter violent extremism – from counter-messaging/counter-recruitment to the reintegration of returning fighters.
  • Dutch-Moroccan-led Foreign Fighter Project:  We jointly support a year-long GCTF initiative, launched February 19, led jointly by Morocco and the Netherlands, to address the phenomenon of foreign fighters.
  • U.S. Regional Strategic Initiative Foreign Fighter Project:  The United States, with EU support, will complement the Dutch-Moroccan initiative by focusing on implementation of the Rabat Good Practices to address the criminal justice aspects of prevention, disruption, and prosecution of foreign fighters, mainly focused on the Balkans, Maghreb, and Sahel countries.
Coordination on Combating Terrorist Organizations
We are committed to preventing and countering efforts by terrorists and their networks to travel freely in our territories and finance their illicit activities.  We are continuing this work with the European Union and will rely on a number of critical agreements to accomplish this.

SUNNY DAY AT THE SOYUZ LAUNCH PAD

FROM:  NASA 

The sun rises behind the Soyuz launch pad shortly before the Soyuz TMA-12M spacecraft is rolled out by train to the launch pad at the Baikonur Cosmodrome, Kazakhstan, Sunday, March, 23, 2014. Launch of the Soyuz rocket is scheduled for March 26 (5:17 p.m. U.S. EDT on March 25) and will send Expedition 39 Soyuz Commander Alexander Skvortsov of the Russian Federal Space Agency, Roscosmos, Flight Engineer Steven Swanson of NASA, and Flight Engineer Oleg Artemyev of Roscosmos on a six-month mission aboard the International Space Station.   Credit-NASA-Bill Ingalls

IRS GIVES OPINION OF VIRTUAL CURRENCY LIKE BITCOIN

FROM:  THE INTERNAL REVENUE SERVICE 
IRS Virtual Currency Guidance: Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes; General Rules for Property Transactions Apply 

WASHINGTON – The Internal Revenue Service today issued a notice providing answers to frequently asked questions (FAQs) on virtual currency, such as Bitcoin. These FAQs provide basic information on the U.S. federal tax implications of transactions in, or transactions that use, virtual currency.

In some environments, virtual currency operates like “real” currency -- i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance -- but it does not have legal tender status in any jurisdiction.

The notice provides that virtual currency is treated as property for U.S. federal tax purposes.  General tax principles that apply to property transactions apply to transactions using virtual currency.  Among other things, this means that:

• Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.
• Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply.  Normally, payers must issue Form 1099.
• The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
• A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.

EX-IM BANK GUARANTEES BOND FOR EXPORTED SERVICES BY DELTA AIR LINES DIVISION

FROM:  EXPORT-IMPORT BANK
GOL Issues $41 Million Ex-Im Bank-Guaranteed Bond for Services Exported by Delta TechOps, MRO Division of Delta Air Lines 

Ex-Im Bank-guaranteed financing supports an estimated 400 jobs at Delta TechOps

Washington, D.C. РThe Export-Import Bank of the United States (Ex-Im Bank) today announced the successful issuance of an Ex-Im Bank-guaranteed bond funded by the capital markets that raised $40.7 million for the Brazilian airline, VRG Linhas A̩reas S.A. (GOL), for engine-maintenance services performed by Delta TechOps in Atlanta, Ga. Delta TechOps is the maintenance, repair and overhaul (MRO) division of Delta Air Lines Inc.

The Ex-Im Bank-guaranteed bond was issued in mid-February to raise the funds to reimburse GOL for costs related to engine-maintenance services performed by Delta TechOps in 2013. The two-year bond bears interest at a fixed rate of 0.622 percent.

GOL issued the bond under a $45.5 million guarantee authorized by Ex-Im Bank in May 2013 to support Delta TechOps exports to the Brazilian airline. The financing is supporting an estimated 400 jobs at Delta TechOps, according to Ex-Im Bank’s jobs-calculation methodology.

"With this transaction, Ex-Im Bank continues to support hundreds of highly-skilled jobs of Delta TechOps in Atlanta," said Ex-Im Bank Chairman and President Fred P. Hochberg. "Our guarantee made possible the capital-markets funding of these services under Delta TechOps’s multiyear contract with GOL, a longtime Ex-Im Bank customer in Latin America.”

"Delta TechOps, a division of Delta Air Lines, is performing essential aircraft-engine maintenance and overhaul services for our existing fleet," said Paulo Kakinoff, chief executive officer of GOL. "The availability of Ex-Im Bank’s financing was the key to our choosing this U.S. provider for these services and is strengthening the partnership between our two companies."

The February 2014 issuance was the third successful Ex-Im Bank-guaranteed bond issuance to finance engine-maintenance services. The previous two issuances, which also supported Delta TechOps’s services to GOL, were done in 2012 under an $84.8 million Ex-Im Bank commitment approved the same year. The transaction earned Ex-Im Bank an Airfinance Journal “Deal of the Year” award in April 2013. The financing covered the first two years of GOL’s five-year engine-maintenance contract with Delta TechOps that was signed in December 2010.

In accordance with the contract, Delta TechOps is performing heavy maintenance on GOL's CFM56-7B engines that are installed on the airline's Boeing 737 next generation aircraft fleet. Delta TechOps is providing GOL with up to 253 scheduled engine removals and additional unscheduled removals. The GOL engines are shipped from São Paulo, Brazil, to Atlanta for heavy maintenance performed by Delta TechOps.

BAMBOO: THE GREAT CONTEST BETWEEN PANDAS AND HORSES

FROM:  THE NATIONAL SCIENCE FOUNDATION 
Belly up to the bamboo buffet: Pandas vs. horses
Livestock, particularly horses, have been identified as a significant threat to panda survival

2014 is the Year of the Horse in China. But pandas, it turns out, aren't celebrating

Why not? Because livestock, particularly horses, have been identified as a significant threat to panda survival. The reason: Horses have been beating pandas to the bamboo buffet. The oft-hidden, yet significant, conservation conflict between pandas and horses was revealed in a recent article in the Journal for Nature Conservation by Michigan State University (MSU) panda habitat experts.

"Across the world, people are struggling to survive in the same areas as endangered animals, and often trouble surfaces in areas we aren't anticipating," said Jianguo "Jack" Liu of MSU. "Creating and maintaining successful conservation policy means constantly looking for breakdowns in the system. In this case, something as innocuous as a horse can be a big problem."

Pandas have specific habitat needs--they live in gently sloping areas far from human populations. And they only eat bamboo. (Watch a panda bellying up to the bamboo buffet.) China invests billions to protect its panda habitat and conserve the 1,600 remaining endangered supported by this habitat.

For years, timber harvesting has been the panda's biggest threat. But conservation programs limiting timber harvesting have chalked up wins in preserving panda habitat.

Vanessa Hull, a doctoral student at MSU's Center for Systems Integration and Sustainability (CSIS), has been living off and on for seven years in the Wolong Nature Reserve, most recently tracking pandas that she has outfitted with GPS collars.

Over the years, she started noticing that uninvited guests had apparently been serving themselves at the bamboo buffet--and they were eating like horses…literally.

"It didn't take particular panda expertise to know that something was amiss when we'd come upon horse-affected bamboo patches. They were in the middle of nowhere and it looked like someone had been in there with a lawn mower," Hull said.

Alarmed by the increasing devastation, Hull learned that keeping a horse in this region serves a similar function as maintaining a bank account. Because horses are prohibited from grazing in designated grazing areas, to prevent them from competing for food with cattle, some farmers have been letting horses graze unattended in forests. When these horse-keeping farmers need cash, they track down their horses in the forest and sell them.

Eventually, some Wolong farmers, though not traditionally horse-keepers, learned from horse-keeping friends who lived outside of the reserve that they too could cash in by keeping horses--and letting them loose to graze unattended in Wolong. Where, unfortunately, they would compete for food with pandas.

Over time, the popularity of this practice soared. In 1998, only 25 horses lived in Wolong. By 2008, 350 horses lived there in 20 to 30 herds.

To understand the scope of the problem, Hull and her colleagues put the same type of GPS collars they were using to track pandas on one horse in each of four herds they studied. Then, over a year they compared the activity of the horses with that of three collared adult pandas in some of the same areas, and combined resulting data with habitat data.

The researchers discovered that the galloping gourmets are indeed big on bamboo--and are drawn to the same sunny, gently sloped spots as pandas. Pandas and horses eat about the same amount of bamboo, but a herd of more than 20 horses created veritable feeding frenzies, destroying areas that the reserve was established to protect.

The researchers presented their findings to Wolong's managers, who have since banned horses from the reserve. But Hull and Liu note that this work has shed light on how competitive livestock can be in sensitive habitat--an issue that is duplicated across the globe.

"Livestock affect most of the world's biodiversity hotspots," Liu said. "They make up 20 percent of all of the earth's land mammals and therefore monopolize key resources needed to maintain the earth's fragile ecosystems."

This research project received funding from the National Science Foundation.

Editor's Note: This Behind the Scenes article was first provided to LiveScience in partnership with the National Science Foundation.

-- Sue Nichols, Michigan State University
Investigators
Li An
Jianguo Liu
Lisa Pearce
Scott Yabiku
William Axinn

Tuesday, March 25, 2014

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MARCH 25, 2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS

NAVY

Lockheed Martin Corp., Fort Worth, Texas, is being awarded a $698,032,385 fixed-price-incentive, firm target, advanced acquisition contract to procure long lead parts, materials and components in support of 57 Low Rate Initial Production Lot IX F-35 Lightning II Joint Strike Fighter (JSF) aircraft, including: 26 F-35A Conventional Takeoff and Landing (CTOL) aircraft for the Air Force; six F-35B Short Takeoff Vertical Landing (STOVL) aircraft for the Marine Corps; two F-35C Carrier Variant aircraft for the Navy; six F-35A CTOL aircraft for the government of Norway; one F-35A CTOL for the government of Italy; seven F-35A CTOL aircraft for the government of Israel; two CTOL aircraft for the government of Japan; six F-35B STOVL for the United Kingdom, and one F-35B STOVL aircraft for the government of Italy.  Work will be performed in Fort Worth, Texas, and is expected to be completed in May 2015.  Fiscal 2014 aircraft procurement, Air Force, Marine Corps, Navy funds and international partner funds in the amount of $698,032,384 are being obligated on this award, none of which will expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to 10 U.S.C. 2304(c)(1).   The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-C-0002).
Lockheed Martin Mission Systems and Training, Moorestown, N.J., is being awarded a $93,049,896 modification to previously awarded contract (N00024-14-C-5114) to exercise options for production of Aegis Ashore Missile Defense System (AAMDS) in Poland and to provide multi-year procurement funding for Aegis Weapon System (AWS) MK 7 equipment sets.  Work will be performed in Moorestown, N.J. (85.5 percent), Clearwater, Fla. (13.1 percent), and Akron, Ohio (1.4 percent), and is expected to be completed by September 2021.  Fiscal 2014 defense wide procurement and fiscal 2013 shipbuilding and conversion, Navy contract funds in the amount of $93,049,896 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Sikorsky Aircraft Corp., Stratford, Conn., is being awarded a $21,624,392 modification to a previously awarded indefinite-delivery/indefinite-quantity contract (N00019-07-D-0004) to exercise an option for special progressive aircraft rework for one VH-3D and twoVH-60N presidential helicopters, including two months of field level support.  Work will be performed in Stratford, Conn. (99 percent) and Quantico, Va. (1 percent), and is expected to be completed in September 2014.  No funds will be obligated at time of award; funds will be obligated on individual delivery orders as they are issued.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Raytheon Integrated Defense Systems, Portsmouth, R.I., is being awarded a $17,683,352 modification to previously awarded contract (N00024-10-C-6307) to fabricate, assemble, test and deliver three Airborne Mine Neutralization System (AMNS) low-rate initial production systems and provide engineering services and support.  The AMNS will explosively neutralize bottom and moored mines using an expendable mine neutralize device.  The system will be deployed from the MH-60 helicopter as part of the littoral combat ship mine countermeasures mission module.  Work will be performed in Portsmouth, R.I., and is expected to be completed May 2016.  Fiscal 2012 and 2013 other procurement, Navy funds in the amount of $17,683,352 will be obligated at time of award.  Contract funds in the amount of $5,180,655 will expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington D.C., is the contracting activity.

AIR FORCE

Lockheed Martin Aeronautics Co., Marietta, Ga., has been awarded an $84,289,101 cost-plus-incentive-fee contract for the C-5 Core Mission Computer/Color Weather Radar Engineering, Manufacturing and Development Program. Work will be performed at Marietta, Ga., and is expected to be completed by March 31, 2017.  This award is the result of a sole-source acquisition.  Fiscal 2013 aircraft procurement funds in the amount of $11,120,000 are being obligated at time of award.  Air Force Life Cycle Management Center/WLSK, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8625-14-C-6596).

DEFENSE LOGISTICS AGENCY

Philips Medical Systems, Andover, Mass., has been awarded a maximum $77,172,660 modification (P00102) exercising the fifth option period on a one-year base contract (SPM2D1-09-D-8349) with nine one-year option periods for patient monitoring systems, subsystems, accessories, consumables, spare and repair parts, and training.  This is a fixed-price with economic-price adjustment contract.  Location of performance is Massachusetts with a March 29, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Landmark Aviation Miami LLC, Miami, Fla., has been awarded a maximum $6,602,581 fixed-price with economic-price-adjustment contract for into-plane aircraft fuel services.  This is a competitive acquisition, and one offer was received.  Location of performance is Florida with a March 31, 2017 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  Type of appropriation is fiscal 2014 through fiscal 2017 defense working capital funds.  The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va., (SP0600-14-D-0061).

ARMY

Cardno TEC-GMI Joint Venture, Charlottesville, Va. (W9126G-14-D-0012); HDR Environmental, Operations and Construction Inc., Englewood, Colo. (W9126G-14-D-0013); Leidons Inc., Reston, Va. (W9126-14-D-0014); and URS/Arcadis, Dallas, Texas (W9126-14-D-0015), were awarded a maximum $27,750,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, multiple-award task order contract for environmental consulting support services for the U.S. Army Corps of Engineers.  Primary emphasis of the contract is assistance for the southwest Fort Worth district.  The contract consists of an unrestricted business pool of contractors to support military and civilian entities with their compliance with environmental laws and regulations.  Funding and performance locations will be determined with each order.  Each company will receive minimum guarantee of $2,500 at award.  Bids were solicited via the Web with four received.  The estimated completion date is March 24, 2017.  The U.S. Army Corps of Engineers-Fort Worth District, Fort Worth, Texas, is the contracting activity.

Professional Contract Services Inc., Austin, Texas, was awarded a $14,594,454 firm-fixed-price sole-source contract for full food and dining facility attendant support services.  Fiscal 2014 operations and maintenance, Army funding will be obligated on future task orders.  Work will be performed in Fort Hood, Texas, with an estimated completion date of March 31, 2015.  The U.S. Army Contracting Command-Fort Hood, Fort Hood, Texas, is the contracting activity (W91151-10-D-0001).

PRESIDENT OBAMA'S LETTER REGARDING WAR POWERS RESOLUTION

FROM:  THE WHITE HOUSE 

Letter from the President -- -- IDLs -- War Powers Resolution

Dear Mr. Speaker: (Dear Mr. President:)
As I initially reported on October 14, 2011, and most recently reported on December 13, 2013, the United States is pursuing a comprehensive strategy to help the governments and people of central Africa in their efforts to stop the atrocities committed by the Lord's Resistance Army. In furtherance of that strategy, U.S. military personnel with appropriate combat equipment have deployed to Uganda, South Sudan, the Democratic Republic of the Congo, and the Central African Republic to support regional forces from the African Union's Regional Task Force that are working to apprehend or remove Lord's Resistance Army leader Joseph Kony and other senior leaders from the battlefield and to protect local populations.
Regional forces have consistently identified air mobility support with increased range and speed as one of the most-needed capabilities to pursue the remaining Lord's Resistance Army leaders across a wide swath of one of the world's poorest, least governed, and most remote regions. To enhance U.S. support to these regional forces, U.S. aircraft, aircrews, and support personnel deployed to central Africa on March 23 and 24, 2014. The approximately 150 additional personnel will principally operate and maintain U.S. aircraft to provide air mobility support to foreign partner forces.
The total number of U.S. military personnel deployed to the central Africa region for this mission is now approximately 280. The aircraft and personnel providing the enhanced air mobility support will deploy to the Lord's Resistance Army-affected areas of central Africa episodically, as they are available, consistent with other Department of Defense requirements.
During these deployments, the number of U.S. Armed Forces deployed to the central Africa region will fluctuate, and may increase to as many as approximately 300.
As I previously reported, U.S. forces will not themselves engage Lord's Resistance Army forces unless necessary in self-defense.
This deployment is in furtherance of the national security and foreign policy interests of the United States, including the policy expressed in the Lord's Resistance Army Disarmament and
Northern Uganda Recovery Act of 2009, Public Law 111-172, enacted May 24, 2010. I have approved this deployment pursuant to my constitutional authority to conduct U.S. foreign relations and as Commander in Chief and Chief Executive.
I am making this supplemental report as part of my efforts to keep the Congress fully informed, consistent with the War Powers Resolution (Public Law 93-148). I appreciate the support of the Congress in this matter. A classified annex to this report provides additional detail.
Sincerely,
BARACK OBAMA

PRESIDENT OBAMA'S REMARKS AT CLOSING OF NUCLEAR SECURITY SUMMIT

FROM:  THE WHITE HOUSE 

Remarks by President Obama at Closing Session of the Nuclear Security Summit

The World Forum
The Hague, The Netherlands
3:15 P.M. CET
PRESIDENT OBAMA:  Well, thank you very much, Mark.  Let me begin just by saying that -- to Prime Minister Rutte and all the people here in the Netherlands who were involved in organizing this summit, you did an extraordinary job.  And I think we would all agree that this was as well-designed and well-executed as any international summit that we’ve attended.  And so we’re very grateful, and you’ve set a high bar for the work that needs to be done in Chicago.
Two things I want to do is, number one, just remind everybody what has been accomplished.  In previous summits, as a consequence to the work that’s been done collectively, 12 countries and two dozen nuclear facilities around the world have rid themselves entirely of highly-enriched uranium and plutonium.  Dozens of nations have boosted security at their nuclear storage sites; built their own counter-smuggling teams; or created new centers to improve nuclear security and training.  The IAEA is stronger.  More countries have ratified the treaties and international partnerships at the heart of our efforts.
And at this particular summit, we’ve seen such steps as Belgium and Italy completing the removal of their excess supplies of highly-enriched uranium and plutonium so that those supplied s can be eliminated.  In a major commitment, Japan announced that it will work with the United States to eliminate hundreds of kilograms of weapons-usable nuclear material from one of their experimental reactors, which would be enough for a dozen nuclear weapons.  Dozens of other nations have agreed to take specific steps towards improving nuclear security in their own countries and to support global efforts.
So what’s been valuable about this summit is that it has not just been talk, it’s been action.  And that is because of the leadership that has been shown by heads of state and government -- and heads of government that have participated in this effort, as well as the extraordinary work of foreign ministers and sherpas and others who have helped to move this process forward.
I’m looking forward to hosting all of you in the United States, in 2016.  We had a good discussion this afternoon about how we should conceive of this summit two years from now.  The consensus, based on what I heard, was that we should recognize this next summit will be a transition summit in which heads of state and government are still participating, but that we are shifting towards a more sustainable model that utilizes our ministers, our technical people, and we are building some sort of architecture that can effectively focus and implement on these issues and supplement the good work that is being done by the IAEA and others.
So I see two tasks before us over the next two years.  Number one is we have to set very clearly what are the actionable items that we’ve already identified that we know can get done if we have the political will to do them, and let’s go ahead and get them done so that in 2016 we can report out that we have made extraordinary progress and achieved many of the benchmarks and targets that we had set at the very first Nuclear Security Summit.  In other words, I think it is important for us not to relax, but rather accelerate our efforts over the next two years, sustain momentum so that we finish strong in 2016.  And my team will be contacting all of you to find out specific ways in which you think we can move the ball forward over the next two years.
The second thing we’ll be doing is soliciting ideas from each of you about the ultimate architecture that should be constructed to ensure that beyond 2016 we are able to keep this process alive and effective, and that we are able to sync up the efforts of the Nuclear Security Summit with existing institutions like the IAEA, Interpol, the United Nations, some of the treaties that are already in force.
All of you have important views on that, and we’re going to want to make sure that you provide them so that by the time we get to 2016 we have a well thought-out process that can be ratified at that meeting.
So I cannot thank you enough for the extraordinary efforts that all of you have already made.  I cannot guarantee that the videos will be as good at the Washington conference as they’ve been here.  We may not be as creative and imaginative as Mark and his team have been.  But I promise you that we will continue to stay focused on this very important issue, and we look forward to your contributions in 2016 in the United States.
Thank you very much, Mark.  (Applause.)

U.S. CONGRATULATES SALVADOR CEREN ON HIS ELECTION TO PRESIDENCY OF EL SALVADOR

FROM:  U.S. STATE DEPARTMENT 

El Salvador Presidential Elections

Press Statement
John Kerry
Secretary of State
Washington, DC
March 25, 2014


We congratulate Salvador Sanchez Ceren on his election as president, and we particularly congratulate the Salvadoran people for their participation in a process that the OAS election observer mission called calm and orderly.

We recognize that there are pending legal matters, and we urge continued respect for the legal processes and institutions of El Salvador.

El Salvador is a country and a people that I first got to know well as a freshman Senator, and it is a relationship that remains just as important to me as Secretary of State. The United States looks forward to working with President Salvador Sanchez Ceren and to continuing joint efforts to promote security and economic development through the Partnership for Growth. Our longstanding partnership and commitment to El Salvador and the Salvadoran people continues.

AG HOLDER SPEAKS ON BOOSTING TREATMENT SERVICES TO INMATES PRIOR TO RELEASE

FROM:  U.S. JUSTICE DEPARTMENT 
RELEASE
Monday, March 24, 2014

In New Step to Fight Recidivism, Attorney General Holder Announces Justice Department to Require Federal Halfway Houses to Boost Treatment Services for Inmates Prior to Release
New Rules Also Instruct Federal Halfway Houses to Provide Transportation Assistance, Cell Phone Access in Order to Help Inmates Seek Employment Opportunities

WASHINGTON—In a new step to further the Justice Department’s efforts towards enhancing reentry among formerly incarcerated individuals, Attorney General Eric Holder announced Monday that the Bureau of Prisons (BOP) will impose new requirements on federal halfway houses that help inmates transition back into society. Under the proposed new requirements, these halfway houses will have to provide a specialized form of treatment to prisoners, including those with mental health and substance abuse issues. For the first time, halfway houses will also have to provide greater assistance to inmates who are pursuing job opportunities, such as permitting cell phones to be used by inmates and providing funds for transportation. The new requirements also expand access to electronic monitoring equipment, such as GPS-equipped ankle bracelets, to allow more inmates to utilize home confinement as a reentry method.

Holder announced the changes in a video message posted on the Department’s website.

The BOP’s new policies have the potential to be far-reaching. To ease their transition, those exiting prison typically spend the last few months of their sentence in either a federal halfway house—known as a residential reentry center (RRC)—or under home confinement, or a combination of the two.  These community-based programs provide much needed assistance to returning citizens in finding employment and housing, facilitating connections with service providers, reestablishing ties to family and friends, and more.

Last year alone, more than 30,000 federal inmates passed through a halfway house.

Among the most significant changes Holder announced is the requirement for standardized Cognitive Behavioral Programming (CBP) to be offered at all federal halfway houses. This treatment will address behavior that places formerly incarcerated individuals at higher risk of recidivism. As part of this treatment requirement, BOP is setting guidelines for instructor qualifications, class size and length, and training for all staff at the halfway houses.

Several other modifications are being made to the standard contracts that apply to federal halfway houses in order to provide greater support to returning citizens. Examples include requiring halfway houses to provide public transportation vouchers or transportation assistance to help residents secure employment, requiring all federal halfway houses to allow residents to have cell phones to facilitate communication with potential employers and family, and improving and expanding home confinement by increasing the use of GPS monitoring.

The proposed new requirements will be posted today on the Federal Business Opportunities website (www.fbo.gov).  Interested parties will have a 30-day period to comment on the proposal. The BOP anticipates implementing the new requirements beginning with contracts expiring in 2014.

The complete text of the Attorney General’s video message is below:

“Today, America’s federal prison population is experiencing a period of significant negative growth, with nearly 4,000 fewer inmates behind bars than at the end of the last fiscal year.  This is the first major reduction in the federal prison population in three decades.

“Thanks to a variety of effective, evidence-based reentry programs and services, we’re doing more than ever to ensure that the tens of thousands of federal inmates who return to their communities each year have access to the substance abuse treatment, job training, affordable housing, parenting education, and other resources that so many need to break the cycle of poverty, criminality, and incarceration.

“Through innovative strategies like the Justice Department’s ‘Smart on Crime’ initiative, we’re working hard to tear down unnecessary barriers to opportunity and independence – while building up programs that enable former prisoners to reintegrate into their communities.  And nowhere is this work stronger than at the Federal Bureau of Prisons – where groundbreaking efforts are underway to make our criminal justice expenditures both smarter and more productive.

“Today, I’m pleased to announce that the Justice Department – through the Bureau of Prisons – is taking a critical step forward that will enable us to build on this important work – and improve the way reentry programming is implemented from coast to coast.

“For the first time, we will require all 200-plus halfway houses in the federal system to offer standardized treatment to prisoners with mental health and substance abuse issues. This treatment will be intensive, and must follow rigorous standards set forth by the Bureau of Prisons.  Once fully implemented, these services will be available to every single one of the approximately 30,000 inmates who are released through halfway houses each year.  This will ensure consistency and continuity of care between federal prisons and community-based facilities.  And it will enhance the programs that help prisoners overcome their past struggles, get on the right path, and stay out of our criminal justice system.

“These important changes and others are codified in BOP’s published requirements for halfway houses – which will be posted online this week.  Over the next 30 days, those who operate halfway houses will have the opportunity to provide feedback on these newly proposed requirements.  And I encourage members of the public to visit this site, learn about these tools, and make your voices heard as well – so we can all take an active part in constructing the more effective, more efficient, and more just system that everyone in this country deserves.”

OTEZLA APPROVED BY FDA TO TREAT ADULT ACTIVE PSORIATIC ARTHRITIS

FDA NEWS RELEASE

For Immediate Release: March 21, 2014
Media Inquiries: Morgan Liscinsky, 301-796-0397, morgan.liscinsky@fda.hhs.gov 
Consumer Inquiries: 888-INFO-FDA
FDA approves Otezla to treat psoriatic arthritis
The U.S. Food and Drug Administration today approved Otezla (apremilast) to treat adults with active psoriatic arthritis (PsA).
PsA is a form of arthritis that affects some people with psoriasis. Most people develop psoriasis first and are later diagnosed with PsA. Joint pain, stiffness and swelling are the main signs and symptoms of PsA. Currently approved treatments for PsA include corticosteroids, tumor necrosis factor (TNF) blockers, and an interleukin-12/interleukin-23 inhibitor.
“Relief of pain and inflammation and improving physical function are important treatment goals for patients with active psoriatic arthritis,” said Curtis Rosebraugh, M.D., M.P.H., director of the Office of Drug Evaluation II in the FDA’s Center for Drug Evaluation and Research. “Otezla provides a new treatment option for patients suffering from this disease.”
The safety and effectiveness of Otezla, an inhibitor of phosphodieasterase-4 (PDE-4), were evaluated in three clinical trials involving 1,493 patients with active PsA. Patients treated with Otezla showed improvement in signs and symptoms of PsA, including tender and swollen joints and physical function, compared to placebo.
Patients treated with Otezla should have their weight monitored regularly by a healthcare professional. If unexplained or clinically significant weight loss occurs, the weight loss should be evaluated and discontinuation of treatment should be considered. Treatment with Otezla was also associated with an increase in reports of depression compared to placebo.
The FDA is requiring a pregnancy exposure registry as a post-marketing requirement to assess the risks to pregnant women related to Otezla exposure.
 
In clinical trials, the most common side effects observed in patients treated with Otezla were diarrhea, nausea, and headache.  

RECENT U.S. NAVY PHOTOS


FROM:  U.S. NAVY 

140322-N-RB579-323 ICE CAMP NAUTILUS (March 22, 2014) Sailors aboard the Virginia-class attack submarine USS New Mexico (SSN 779) tie mooring lines after the submarine surfaces through the arctic ice during Ice Exercise (ICEX) 2014. ICEX 2014 is a U.S. Navy exercise highlighting submarine capabilities in an arctic environment. (U.S. Navy photo by Mass Communication Specialist 2nd Class Joshua Davies/Released)




140321-N-CP762-171 WATERS NEAR GUAM (March 21, 2014) A torpedo is launched from the deck of Arleigh Burke-class guided-missile destroyer USS Mustin (DDG 89) during Multi-Sail 2014. Multi-Sail is an annual exercise in the 7th Fleet area of responsibility supporting security and stability in the Indo-Asia-Pacific region. (U.S. Navy photo by Culinary Specialist 2nd Class Fidel Hart/Released).

JUSTICE DEPARTMENT CITES FIRST CONVICTIONS FOR DISTRIBUTION OF COUNTERFEIT APPS

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, March 24, 2014

Leader and Co-Conspirator of Android Mobile Device App Piracy Group Plead Guilty

Florida Individuals Represent First U.S. Convictions for Distributing Counterfeit Apps

The leader of a piracy group engaged in the illegal distribution of copies of copyrighted Android mobile device applications and a co-conspirator have pleaded guilty for their roles in the scheme that distributed more than one million copies of copyrighted apps with a total retail value of more than $700,000.

Acting Assistant Attorney General David A. O’Neil of the Department of Justice’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.

“These mark the first convictions secured by the Justice Department against those who illegally distribute counterfeit mobile apps,” said Acting Assistant Attorney General O’Neil.  “These men trampled on the intellectual property rights of others when they and other members of the Appbucket group distributed more than one million copies of pirated apps.  The Criminal Division has made fighting intellectual property crime a top priority, and these convictions demonstrate our determination to prosecute those who undermine the innovations of others in new technologies.”

“Copyright infringement discourages smart, innovative people from using their talents to create things that the rest of society can use and enjoy,” said U.S. Attorney Yates.   “Theft is theft – whether the property taken is intellectual or tangible – and we will continue to prosecute those who steal copyrighted material.”

“The wholesale theft of intellectual property as seen in this case cannot and will not go unaddressed,” said FBI SAC Johnson.  “The FBI will continue to work with its various law enforcement partners in identifying, investigating and presenting for prosecution those individuals and groups engaged in such criminal activities that involve the attempt to profit from the hard work and the developed creative ideas of others.”

Nicholas Anthony Narbone, 26, of Orlando, Fla., pleaded guilty today to one count of conspiracy to commit criminal copyright infringement, and Thomas Allen Dye, 21, of Jacksonville, Fla., pleaded guilty to the same change on March 10, 2014.   Sentencing is scheduled for July 8, 2014, and June 12, 2014, respectively.

An information filed on Jan. 24, 2014, charged Narbone, Dye and others with one count of conspiracy to commit criminal copyright infringement.  According to the information, Narbone, Dye and their fellow conspirators identified themselves as the Appbucket group, with Narbone as the leader, and, from August 2010 to August 2012, they conspired with other members of the Appbucket group to reproduce and distribute more than one million copies of copyrighted Android mobile device apps through the Appbucket alternative online market without permission from the copyright owners of the apps.

The investigation was conducted by the FBI.  The prosecution is being handled by Assistant U.S. Attorney Christopher Bly of the Northern District of Georgia and Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).  Significant assistance was provided by the CCIPS Cybercrime Lab, and the Office of International Affairs also provided assistance in this matter.

JUSTICE FILES SUIT TO ENFORCE REEMPLOYMENT RIGHTS OF TEMPORARILY DISABLED SERVICEMEMBER

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, March 24, 2014

Justice Department Files Lawsuit Against Con-Way Freight Inc. to Enforce Reemployment Rights of Temporarily Disabled Servicemember
The Department of Justice filed a lawsuit today against Con-Way Freight Inc. alleging that the company violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by failing to promptly reassign Naval Reservist Dale Brown to his former position as a driver with appropriate seniority once he notified the company that he had fully recovered from a temporary service-related medical disability.
                                         
According to the complaint, filed in the U.S. District Court for the Northern District of Illinois, Brown began working for Con-Way on Nov. 9, 1987, as a driver sales representative (DSR).  In 2006, Brown was working at Con-Way’s Rock Island, Ill., facility when he deployed for active duty.  While in Iraq, Brown suffered a serious shoulder injury in a truck accident during a night mission and returned to Con-Way in 2009 following an honorable discharge.  Con-Way placed him in a lower-paying position due to medical restrictions that prevented him from returning to the DSR position.  By 2012, Brown had made a full recovery and notified the company that he was able to resume work as a DSR without medical restrictions.  Con-Way refused to return Brown to the DSR position and instead made him apply for open positions as they became available.  Months later, Brown was eventually hired as a DSR, but, Con-Way treated him as a new employee with no seniority to bid on assignments.  As a result, Brown effectively received a 40 percent reduction in pay compared to what he was earning as a DSR prior to his military leave.  He also no longer has a regular work schedule because his seniority was not restored upon resinstatement and he must call in each day to see if and for how long he will work on a given day.

USERRA obligates employers to promptly reemploy returning servicemembers and place them as near as possible in the position that they would have been in absent military service, or a position of similar seniority, status and pay.  For servicemembers like Brown who return with a service-connected disability, the reemployment obligation extends to providing accommodations to the servicemember, which can include a temporary position until the servicemember has recovered and is able to return to his or her proper reemployment position.  Contrary to these requirements, Con-Way violated USERRA by treating Brown as a newly hired DSR, with no accrued seniority, rather than placing him in the position that he would have held had he not served his country and suffered a serious and debilitating injury that required temporary accomodation.

The lawsuit seeks an adjustment to Brown’s seniority date as a DSR to his pre-deployment date with back wages for Con-Way’s six month delay in reemploying Brown once he asked for reinstatement as a DSR following his medical clearance, and his inability to bid on desirable shifts and routes due to his lack of seniority.

“Employers have a legal obligation under USERRA to accommodate servicemembers who suffer a disability while serving their country,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “The Civil Rights Division is committed to protecting the rights of those who have served their country through military service.”

This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service.  The case is being handled by the Employment Litigation Section of the Civil Rights Division.

DISEASE SCREENING ACCORDING TO AN INDIVIDUAL'S RISKS

FROM:  NATIONAL SCIENCE FOUNDATION 
Tailoring disease screening programs to individuals

Researcher developed a customized computer algorithm that provides a better decision support tool

Oguzhan Alagoz believes that many existing disease screening programs all too often take a one-size-fits-all approach. To be sure, "it is important to catch a disease early," he says. "But still, most screening programs treat everyone the same."

In breast cancer, for example, "they say any woman who turns 40, or 50, should start screening every year, and they don't differentiate women by individual risks," says Alagoz, an associate professor of industrial and systems engineering at the University of Wisconsin-Madison.

"The common characteristic of all of these guidelines is age," he adds. "They specify age, but don't specify whether women with higher or lower risk should or should not be screened, nor do they take into consideration a woman's personal preferences about mammography. We have to start tailoring screening recommendations to the individual woman."

To try to address this, the National Science Foundation (NSF)-funded scientist has developed a computer algorithm that will allow women to reach a decision customized for them. "You enter your age, your risk factors and how you personally feeling about screening," he says. "Then our model helps you make a decision about mammography."

Although implementation is beyond the scope of his research, he believes the ideal scenario would be to have a woman use the computer model in consultation with her personal physician. "We shouldn't over-trust the model," says Alagoz, who also holds a secondary appointment as an associate professor of population sciences in the university's school of medicine and public health.

"Over-trusting technology in medicine may not be the best thing to do, but it will help you," he adds. "It also will help the physician and the women who might be missing certain things. I see this not as a method to guide the whole decision, but as a decision support tool."

Ultimately, he sees the research as a framework for developing better screening policies for other cancers as well, including prostate and colorectal cancers as well as other conditions, such as diabetic retinopathy.

"Any improvement on cancer screening and diagnosis would directly affect millions of people being screened for cancer, and indirectly affect almost the whole population being screened for other diseases," he says. "Furthermore, the potential life savings and dollar savings of the proposed research are substantial."

Alagoz is conducting his work with an NSF Faculty Early Career Development (CAREER) award, which he received in 2009 as part of the American Recovery and Reinvestment Act. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education, and the integration of education and research within the context of the mission of their organization. NSF is funding his work with about $430,000 over five years.

As part of the grant's educational component, he is training doctoral students to use such operations research techniques to solve complicated decision problems in medicine, and plans to integrate his findings into new courses. "The research will introduce operations research tools to the medical community through a successful application of these tools to a complicated and controversial problem in medicine," he says.

He says there were a number of computational challenges he had to overcome in developing the model, and hopes to soon test it in a local clinic, although widespread clinical practice is likely several years away. "This is really very much still only on paper and in the computer," he says.

His description of the algorithm and how it works appeared in the journal Operations Research.

"Every model is a representation of a real life system," he says. "For this algorithm to work, we have to somehow represent the existence of cancer and probability of getting it over a lifetime."

For this, he used the so-called Markov decision process model, a popular operations research tool used in various areas of applications. His model only considers the present state--for example, the current condition of a patient--to predict the probability of a future state, in this case, the chances of a patient's developing cancer over a certain time period.

"There are already several risk assessment/predictions models that can tell you the probability of getting cancer over the next five or ten years, but this model also will consider your preferences and your risk and tell you at what age you should get a mammogram," Alagoz says. "Then it will tell you, if it is negative, you should get it at such and such an age. It makes a recommendation to you about when you should get your next mammogram and all kinds of other statistics."

The major difference between this model and other existing predictive algorithms "is that it takes into account how the woman feels about the procedure," he says, citing fears over mammography, the risk of false positives that could result in unnecessary biopsies and other tests. "We have to somehow translate your feelings into numbers, that is, how much quality of life is lost due to your feeling toward mammography, a false positive, a biopsy, and the possibility of breast cancer."

Alagoz hopes to include compliance as a factor in the next generation model. "What if she doesn't come back, how should we adjust our model to recommend more or less aggressive screening?" he says. "If compliance is very high, then less aggressive screening recommendations make more sense."

He also is using the model for investigating important screening policy questions such as what age to stop screening, what ages should be screened more aggressively, and the role of compliance in screening recommendations, among other things.

Alagoz is conducting his research with input from the medical community.

"The physicians are helping me build the models," he says. "When you build these models, you have to make some assumptions. I am not a physician, so I meet with physicians/epidemiologists every week who help me build the correct models."

-- Marlene Cimons, National Science Foundation
Investigators
Oguzhan Alagoz
Related Institutions/Organizations
University of Wisconsin-Madison

Monday, March 24, 2014

FTC STUDY RELEASED ON ALCOHOL ADVERTISING AND UNDERAGE AUDIENCES

FROM:  FEDERAL TRADE COMMISSION 
FTC Releases Fourth Major Study on Alcohol Advertising and Industry Efforts to Reduce Marketing to Underage Audiences
Study Shows Over 93 Percent Compliance with Placement Guidelines

The Federal Trade Commission released its fourth major study on alcohol industry compliance with self-regulatory guidelines, including those designed to address concerns about youth access to alcohol marketing.

For the study, the FTC ordered 14 major alcohol companies to provide information on advertising and marketing expenditures from the 2011 calendar year, and advertising placement data (including audience data) for the first six months of 2011.   For the first time, the agency obtained substantial information on Internet and digital marketing and data collection and use practices.

Presented in an aggregate, anonymous fashion, the findings include:

How Companies Allocate Marketing Dollars: 31.9 percent of expenditures were directed to advertising in traditional media such as television, radio, magazine, and newspaper advertising.  The study found that 28.6 percent of expenditures were used to help wholesalers and retailers promote alcohol; 17.8 percent were allocated to sponsorships (sports and non-sports) and public entertainment; 7.9 percent were directed to online and other digital marketing – almost a four-fold increase from the 2 percent reported in the 2008 study; and 6.8 percent were directed to outdoor and transit marketing efforts.

Meeting Industry Standards on Ad Placement.  In the first half of 2011, 93.1 percent of all measured media combined (including traditional media and online/other digital) met the alcohol industry’s placement standard at the time, which required that 70 percent or more of the audience viewing the ads be 21 years old or older, based on reliable data.  Further, because compliance shortfalls were primarily in media with smaller audiences (such as local radio), over 97 percent of individual consumer exposures to alcohol ads were from placements meeting the 70 percent standard.  The industry has since adopted a new ad placement standard requiring that 71.6 percent of the audience viewing alcohol ads be 21 years old or older.

Ad Placement on Online and Other Digital Media. In the first half of 2011, 99.5 percent of alcohol ads that advertisers placed on sites owned by others – such as news, entertainment, and sports sites – met the alcohol industry’s 70 percent placement standard.  The alcohol companies’ web sites and social media pages are “age gated,” meaning that a consumer must either enter a date of birth that shows him or her to be 21 years old or older, or must certify to being over 21 to enter the site.

Privacy Concerns on Online and Other Digital Media. The report stated that alcohol industry members appear to have considered privacy impacts in the marketing of their products.  It appears that, at least in the context of online registration opportunities, alcohol companies generally advise consumers how their information will be used and that they require consumers to opt-in to receive marketing information and consumers can readily opt-out when they want to stop receiving such information.  Use of cookies and tracking tools on brand websites appears to be limited to those needed to ensure that only consumers who have stated they are 21 or older can re-enter the site.

Product Placements.  Product placement in movies, television shows, and other entertainment media accounted for a very small portion – about one-tenth of one percent – of expenditures.   Most product placements involve the provision of props (such as bottles and signs) rather than money.

Outside Review of Complaints.  The report found that all three major alcohol industry trade groups – the Beer Institute, the Distilled Spirits Council of the United States, and the Wine Institute – have procedures for external review of complaints regarding alcohol advertising, but only the Distilled Spirits Council received any complaints between January 2009 and December 2012.  In the majority of cases (including all cases involving Council members), the advertiser agreed to comply with the decision of the Council’s review board.
The report’s key recommendations include:

When placement compliance levels fall below 90 percent for a brand in a particular media, and lack of compliance is due to wide fluctuations in measured audience composition due to small sample size, the company should consider using a higher audience composition threshold at the time of placement, to increase the likelihood of meeting the standard at the time the ad actually appears.
Because audience demographic data for radio is now available for larger markets showing all audience members age 6 and older, the companies should review this more comprehensive data when making placements.

Companies should take advantage of age-gating technologies offered by social media, including YouTube, and age gates on company websites should require consumers to enter their date of birth, rather than simply asking them to certify that they are of legal drinking age.

Companies should improve posted privacy policies to make them brief, transparent regarding data collection and use, and understandable to ordinary consumers.

Regarding user-generated content, companies should use blocking technologies and engage in frequent monitoring to reduce the potential for violations of the voluntary advertising and marketing codes established by the Beer Institute, the Distilled Spirits Council of the United States, and the Wine Institute.
Alcohol companies and the industry as a whole should continue their efforts to facilitate compliance with the voluntary codes, including staff training and cross-company identification of best practices.

State regulatory authorities, consumer advocacy organizations, and others who are concerned about alcohol marketing should participate in the industry’s external complaint review system when they see advertising that appears to violate the voluntary codes.

Industry and others concerned with reducing underage access to alcohol are encouraged to use the free “We Don’t Serve Teens” alcohol education materials available on DontServeTeens.gov.

The FTC released previous studies in 1999, 2003, and 2008.  Recommendations from past reports have resulted in agreements by the Beer Institute, the Distilled Spirits Council of the United States, and the Wine Institute, to adopt improved voluntary advertising placement standards; buying guidelines for placing ads on radio, in print, on television, and on the Internet; a requirement that suppliers conduct periodic internal audits of past placements; and systems for external review of complaints about compliance.

The Commission vote to authorize release of the report was 4 - 0.

SECRETARY KERRY'S REMARKS WITH DUTCH FOREIGN MINISTER TIMMERMANS

FROM:  U.S. STATE DEPARTMENT 

Remarks With Dutch Foreign Minister Frans Timmermans

Remarks
John Kerry
Secretary of State
Deputy Chief of Mission Residence
The Hague, Netherlands
March 24, 2014




SECRETARY KERRY: Thank you. Frans, thank you.

FOREIGN MINISTER TIMMERMANS: Thank you, Mr. Secretary.

SECRETARY KERRY: Nice to see you again. I’m happy to see you – very very much so.

FOREIGN MINISTER TIMMERMANS: Absolutely.

SECRETARY KERRY: Let me say how very grateful we are to The Netherlands for hosting the nuclear summit, and I am particularly grateful to Frans for his friendship and for the extraordinary efforts of The Netherlands with respect to human rights, freedom, standing up on Ukraine, a partner in so many different respects. We’re very, very grateful for that.
We also recognize that The Netherlands is the third-largest investor in the United States, responsible for some 700,000 jobs in our country, a great friend, and also importantly, a helpful advocate for the Transatlantic Trade and Investment Partnership, which we all recognize will help lift our countries economically.

So we’re really delighted to be here with you and thank you very much for a generous welcome.

FOREIGN MINISTER TIMMERMANS: Well, thank you very much for attending. And I have to say you have shown us great leadership on Syria, on the Middle East peace process, on Ukraine, all these things that preoccupy foreign ministers, you’re the leader of the pack in terms of our values, in terms of where we want to go, and in terms of the solutions we want to bring to the table. And I believe we from The Netherlands, the European Union, and the United States – we need to stand together in this period of great challenges to the international system. Especially on Ukraine, I believe we have the great responsibility to break with the logic that you
can change borders by military means if you don’t agree with the policy of our government.
SECRETARY KERRY: Couldn’t agree more. Thank you, Frans.

FOREIGN MINISTER TIMMERMANS: Thank you very much.

SECRETARY KERRY: Thank you for your hospitality. Thank you. Thank you all very much, appreciate it.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MARCH 24, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

DEFENSE LOGISTICS AGENCY

General Electric Co., Waukesha, Wis., has been awarded a maximum $72,955,840 modification (P00101) exercising the first option period on a two-year base contract (SPM2D1-12-D-8310) with one two-year option and one one-year option period for digital imaging network-picture archive communication system.  This is a fixed-price with economic-price-adjustment contract.  Location of performance is Wisconsin with a March 26, 2016 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 through fiscal 2016 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

FLIR Systems Inc., Wilsonville, Ore., has been awarded a maximum $18,191,712 firm-fixed-price contract for weapon system turret unites.  This is a sole-source acquisition.  Location of performance is Oregon with a May 30, 2014 performance completion date.  Using military service is Navy.  Type of appropriation is fiscal 2014 Navy working capital funds.  The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa., (SPRPA1-14-C-U003).

DeRossi & Son Company Inc.*, Vineland, N.J., has been awarded a maximum $13,824,000 modification (P00100) exercising the fourth option period on a one-year base contract (SPM1C1-10-D-1029) with four one-year option periods for men’s poly/wool, dress blue, Army coats.  This is a firm-fixed-price contract.  Location of performance is New Jersey with a March 25, 2015 performance completion date.  Using military service is Army.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

Lockheed Martin Corp., Owego, N.Y., has been awarded a maximum $8,053,848 firm-fixed-price contract for radar data processors.  This is a sole-source acquisition.  Location of performance is New York with a Feb. 28, 2017 performance completion date.  Using military service is Navy.  Type of appropriation is fiscal 2014 Navy working capital funds.  The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa., (SPRWA1-13-D-2000-THAG).

AIR FORCE

InDyne Inc., Reston, Va., has been awarded a $30,805,507 cost-plus-incentive-fee and cost-plus-fixed-fee modification (P00500) to contract (F04684-03-C-0050) to exercise option 12 for the operations and maintenance support services, training, command, control, communications, information and computer systems services, testing, modification and installation of communications, electronic, and security systems at launch facilities, launch control centers and test facilities for the 30th Space Wing, Vandenberg Air Force Base, Calif.  Work will be performed at Vandenberg Air Force Base, Calif., and is expected to be completed by Sept. 30, 2014.  Fiscal 2014 operations and maintenance funds will be obligate upon availability of funds.  The 30th Contracting Squadron/LGCZ, Vandenberg Air Force Base, Calif., is the contracting activity.

NAVY

Systems Application & Technologies Inc.*, Oxnard, Calif., is being awarded a $15,934,440 modification to a previously awarded cost-plus-fixed-fee contract (N68936-13-C-0083) to exercise an option for maintenance and operations of aerial and seaborne target assets in for the U.S. Navy and the governments of Japan and Australia.  Work will be performed at the Naval Air Warfare Center Weapons Division (NAWCWD), Point Mugu, Calif. (40 percent); the Naval Surface Warfare Center, Port Hueneme, Calif. (30 percent); various at sea locations (15 percent); NAWCWD China Lake, Ridgecrest, Calif. (7 percent); the White Sands Missile Range, Las Cruces, N.M. (3 percent); the Pacific Missile Range Facility, Kauai, Hawaii (2 percent); the Utah Test and Training Range, Salt Lake City, Utah (2 percent) and Vandenburg Air Force Base, Lompoc, Calif. (1 percent), and is expected to be completed in March 2015.  Fiscal 2014 Major Range and Test Facility Base funds in the amount of $7,400,554 will be obligated at time of award, all of which will expire at the end of the current fiscal year.  This contract combines purchases for the U.S. Navy ($15,456,406, 97 percent), and the governments of Japan ($318,689, 2 percent), and Australia ($159,345, 1 percent) under the Foreign Military Sales Program.  The Naval Air Warfare Center Weapons Division, China Lake, Calif., is the contracting activity.

Bilbro Construction Co., Inc.*, Escondido, Calif., is being awarded $11,009,552 for firm-fixed-price task order 0007 under a previously awarded multiple award construction contract (N62473-09-D-1653) for the design, engineering, and construction of a tracked vehicle maintenance cover at Marine Corps Air Ground Combat Center, Twentynine Palms.  The work to be performed provides for the design, engineering, and construction of primary and supporting facilities for the 1st Tank Battalion.  The task order also contains four unexercised options and one planned modification, which if exercised would increase cumulative task order value to $13,232,180.  Work will be performed in Twentynine Palms, Calif., and is expected to be completed by December 2015.  Fiscal 2012 military construction, Navy contract funds in the amount of $11,009,552 are being obligated on this award and will not expire at the end of the current fiscal year.  Three proposals were received for this task order.  The Naval Facilities Engineering Command, Southwest, San Diego, Calif., is the contracting activity.

Rockwell Collins Inc., Cedar Rapids, Iowa, is being awarded an $8,292,793 modification to a previously awarded firm-fixed-priced contract (N00019-09-C-0069) to exercise an option for the procurement of AN/ARC-210(V) electronic radios and ancillary equipment for a variety of aircraft.   Equipment being procured includes 57 control radio sets, 57 high power amplifiers, 57 low noise amplifier diplexers and 62 receiver transmitters.  Work will be performed in Cedar Rapids, Iowa, and is expected to be completed in May 2015.  Fiscal 2014 aircraft procurement, Navy funds in the amount of $8,292,793 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

ARMY

Mike Hooks Inc., Westlake, La., is being awarded a $45,000,000 firm-fixed-price, indefinite-delivery/indefinite-delivery contract to provide tools in support of dredging projects in Alabama, Mississippi and Florida. Performance location will be determined with each order.  Funding will be obligated on each order.  The contract is expected to be completed in June 2015.  The Army Corps of Engineers, Mobile, Ala., is the contracting activity (W91278-14-D-0024).

CACI Inc. – Federal, Chantilly, Va., is being awarded a $27,114,681 cost-plus-fixed-fee contract for logistics and engineering services performed at contingency locations. Work is expected to be completed in December 2014.  A combination of fiscal 2014 operations and maintenance funds and fiscal 2014 procurement funds in the amount of $5,446,985 are being obligated on this award. One bid was solicited, with one bid received. The Army Intelligence and Security Command, Fort Belvoir, Va., is the contracting activity (W911W4-14-C-0006).

Donal L. Mooney LLC, San Antonio, Texas, is being awarded a $23,717,819 firm-fixed-price, indefinite-delivery/indefinite-quantity, sole-source contract to provide licensed vocational nurses at San Antonio Military Medical Center over the period of one year. Work will be performed in San Antonio, and is expected to be completed in March 2015. Funding will be obligated with each order. The Army Medical Command, Fort Sam Houston, Texas, is the contracting activity (W81K00-14-D-0015).

MedTrust LLC, San Antonio, Texas, is being awarded a $20,746,074 firm-fixed-price, indefinite-delivery/indefinite-quantity, sole-source contract to provide registered nurses of various specialties, ranging from clinical to intensive care to the burn unit. Performance location will be determined with each order. Funding will be obligated on each order. The estimated completion date of the contract is September 2014. The Army Medical Command, Fort Sam Houston, Texas, is the contracting activity (W81K00-14-D-0014).

Baum, Romstedt Technology Research Corp., Vienna, Va., is being awarded a $9,608,333 time-and-materials contract to provide operational and field-support services for the Mine Resistant Ambush Protected vehicle. Work will be performed in Afghanistan; Warren, Mich.; Vienna, Va.; El Paso, Texas; and Chambersburg, Penn., and is expected to be completed in December 2014. A combination of fiscal 2014 operations and maintenance funds and fiscal 2014 procurement funds are being obligated on this award.  Fifteen bids were solicited, with five bids received. The Army Contracting Command, Warren, Mich., is the contracting activity (W56HZV-09-A-A909).


*Small Business

AGRICULTURE DEPARTMENT EXPANDS LOAN OPPORTUNITIES FOR FARMERS

FROM:  U.S. DEPARTMENT OF AGRICULTURE
Agriculture Secretary Tom Vilsack Announces Increased Opportunity for Producers as part of New Farm Bill

Farm Loan Program Modifications Create Flexibility for New and Existing Farmers and Ranchers Alike

WASHINGTON, March 24, 2014 — Agriculture Secretary Tom Vilsack today announced increased opportunity for producers as a result of the 2014 Farm Bill. A fact sheet outlining modifications to the U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) Farm Loan Programs is available here.

"Our nation's farmers and ranchers are the engine of the rural economy. These improvements to our Farm Loan Programs will help a new generation begin farming and grow existing farm operations," said Secretary Vilsack. "Today's announcement represents just one part of a series of investments the new Farm Bill makes in the next generation of agriculture, which is critical to economic growth in communities across the country."

The Farm Bill expands lending opportunities for thousands of farmers and ranchers to begin and continue operations, including greater flexibility in determining eligibility, raising loan limits, and emphasizing beginning and socially disadvantaged producers.

Changes that will take effect immediately include:

Elimination of loan term limits for guaranteed operating loans.
Modification of the definition of beginning farmer, using the average farm size for the county as a qualifier instead of the median farm size.
Modification of the Joint Financing Direct Farm Ownership Interest Rate to 2 percent less than regular Direct Farm Ownership rate, with a floor of 2.5 percent. Previously, the rate was established at 5 percent.
Increase of the maximum loan amount for Direct Farm Ownership down payments from $225,000 to $300,000.
Elimination of rural residency requirement for Youth Loans, allowing urban youth to benefit.
Debt forgiveness on Youth Loans, which will not prevent borrowers from obtaining additional loans from the federal government.
Increase of the guarantee amount on Conservation Loans from 75 to 80 percent and 90 percent for socially disadvantaged borrowers and beginning farmers.
Microloans will not count toward loan term limits for veterans and beginning farmers.

REMARKS BY SECRETARY KERRY AND PAKISTAN PRIME MINISTER SHARIF

FROM:  U.S. STATE DEPARTMENT 
Remarks With Pakistan Prime Minister Nawaz Sharif After Their Meeting
Remarks
John Kerry
Secretary of State
The Hague, Netherlands
March 24, 2014

SECRETARY KERRY: (In progress) – it is to meet with Prime Minister Sharif of Pakistan. We – Pakistan and the United States – have enormous mutual interests. We are both striving to combat extremism, terrorism, deal with the challenge of global energy, as well as to provide for the prosperity of our people and deal with nuclear security. And it’s nuclear security that particularly brings us here to The Hague.

But we are working very, very closely together. I visited with the prime minister in August of last year. We began a strategic dialogue again. We have worked together with our Security, Strategic Stability, and Nonproliferation Working Group. That group is engaged in dealing with issues of nuclear security as well as other challenges. And in addition, we met recently in Washington. Dr. Aziz and I engaged in our strategic dialogue. And we look forward to welcoming Finance Minister Dar, who will be coming to Washington for our finance component of that discussion.

So we are deeply engaged, and I might add that we affirmed recently and we reaffirm that we have great confidence in Pakistan’s nuclear security. They’ve really done an enormous amount of work. I know the prime minister will probably talk about that here at the summit. But we do have important issues of cooperation with respect to the extremism, terror, counterterrorism, and Afghanistan. And we look forward to discussing those issues this morning.

PRIME MINISTER SHARIF: Thank you, John. Thank you very much.

SECRETARY KERRY: Thank you, sir.

PRIME MINISTER SHARIF: It’s always a pleasure to welcome you, and you’ve been a great friend of Pakistan. Of course, we are very happy to have met here also. And as John has been saying, that there are a lot of challenges – we are meeting these challenges in Pakistan. We have been in office for almost about nine months and we’ve had very constructive discussions with our American friends. I had a very good meeting with President Obama a few months ago in Washington, and we are now following up all that we have discussed and agreed.

SECRETARY KERRY: Good.

PRIME MINISTER SHARIF: Thank you.

SECRETARY KERRY: Thank you, Nawaz. Thank you.

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