China: Cox Seeks Stronger White House Action
   The leader of the House committee established to investigate technology transfers to China says he wants stronger assurances from the White House that it will address the panel's recommendations on ways to improve the technology export process. Reps.Christopher Cox R-CA, the committee's chairman, and Norm Dicks D-WA, the ranking member, sent a letter to President Clinton last week requesting a meeting to discuss the administration's Feb. 1 response to the panel's recommendations. Among the recommendations is a call for tighter restrictions on the export of supercomputers to China. The report also said U.S. companies should be denied export licenses for China-bound computers if the U.S. government fails to install a system for conducting surprise end-user checks there by Sept. 30. But the administration replied that it would be more productive to work with China to implement and improve the current end-user verification system.
Encryption: Armey Optimistic
   House Majority Leader Dick Armey R-TX is optimistic that legislation to loosen export restrictions on encryption products will be considered on the floor this Congress. Five House committees approved an encryption bill, backed by Armey and nearly 250 other House members, in different forms in the 105th session. The SAFE bill was sponsored by Rep. Bob Goodlatte R-VA who has said he is likely to reintroduce the legislation this month.
Digital Copyright: EU Approves Tougher Protection
   The European Parliament approved legislation designed to improve copyright protection for works produced in digital form. The legislation, which would implement two international treaties approved by the World Intellectual Property Organization, must still be sent to the EU Council of Ministers for consideration. The U.S. software industry, online service providers and computer and electronics manufacturers are watching the legislation. Internet Caucus co-chairs Reps. Rick Boucher D-VA and Goodlatte are planning a trip to Brussels next week to lobby to EU on the U.S. position on copyright law.
Privacy: Cell Phone Eavesdropping and Data Collection
   The House Commerce Committee approved a bill, sponsored by Rep. Heather Wilson R-NM, to further tighten rules on eavesdropping on private cellular phone conversations. The measure was first crafted after a Florida couple used a scanner to record a '96 cell phone conversation between Rep. John Boehner R-OH and former House Speaker Newt Gingrich R-GA.
    A draft of a Senate online privacy bill contains provisions to require Web site operators to provide notice of what types of personal information are being collected from visitors, and how that information will be used. The proposed legislation, a copy of which was released late Friday by sponsor Sen. Conrad Burns R-MT, would also prohibit site operators from requiring individuals to disclose more personal information than absolutely necessary to participate in online activities. Web sites that already have privacy policies could have them reviewed by the Federal Trade Commission to prove they are in compliance with the proposed legislation. The FTC would be the chief enforcement agency for Burns' Online Privacy Protection Act and could pursue violators in federal court.
Y2K: Liability Bill Battle
   The White House take a dim view of business-backed legislation designed to limit the legal liability of corporations that fail to adequately address Y2K problems, according to President Clinton's top advisers. However, the administration has taken no official position on the bill, they said, adding that Clinton advisers will continue listening to parties wishing to advocate limits on Y2K-related lawsuits. Powerful business groups such as the U.S. chamber of Commerce, the National Association of Manufacturers and the National Retail Federation agreed to the legislation in a caucus last week. The bill would deny lawsuit filers the right to collect punitive damages against corporations that make "good faith" attempts to correct Y2K problems. Koskinen also questioned the need for the bill.
    The Association of Trial Lawyers of America also flexed its muscles this week, voicing opposition to the Y2K liability legislation introduced by Sen. John McCain R-AZ. Under the wing of Commerce ranking member Sen. Fritz Hollings D-SC, a parade of small businessman and attorneys appealed to committee leader McCain to abandon the legislation. ATLA says the legislation would limit the rights of small business owners and consumers if Y2K computer failures occur. The bill also would cap damages and make it harder to pursue negligent companies. Business groups hurl criticism the other way, saying the trial lawyers fear losing a windfall of cash from an explosion of Y2K-related lawsuits. McCain earlier in the week said Y2K liability legislation is a high priority for the Senate leadership. Meanwhile, in the House, Rep. Tom Davis R-VA is leading a bipartisan coalition to introduce liability legislation that incorporates the business consensus plan, and would provide for ways to resolve disputes outside of court.
Telecom Act: A Possible Reopener?
   Sen. Patrick Leahy D-VT announced last week he's ready to re-open the Telecommunications Act of 1996, although the process was delayed when he was called away to attend King Hussein of Jordan's funeral. But early this week a spokesman for Rep. Billy Tauzin R-LA, a long-time critic of the 3-year-old Act, said his office isn't interested in renewing a fight over it. Neither do Reps. John Dingell D-MI and House Commerce committee Chairman Thomas Bliley R-VA, both critics of the legislation.
Bandwidth: Congress, White House on High-Speed Access
   The path to competition in high-speed Internet access lies in pressuring the FCC to let local phone companies offer data services across state lines, Tauzin said. He also rejected a call by OpenNET, a coalition made up of ISPs, for government regulation of high-speed data services supplied by cable TV companies via their lines.
    The administration has pulled together an informal interagency working group to develop recommendations on bridging the high-speed class divide, according to Larry Irving, Commerce assistant secretary at the National Telecommunications Information Administration. The group includes Irving, Al Gore domestic policy adviser Jim Kohlenberger, National Economic Council senior director Tom Kalil, Adam Golodner of the Department of Justice's antitrust division, and Christopher McLaen, deputy administrator with the Agriculture Department's rural utilities division.
FCC: E-Rate Hate
   FCC Commissioner Harold Furtchgott-Roth sent a letter to colleagues and lawmakers complaining that the technology funds for schools and libraries are being unfairly distributed to urban schools over rural ones. In addition to the letter, freshman Rep. Tom Tancredo R-CO introduced a bill that would terminate the e-rate program. The bill has 14 co-sponsors and has been sent to the House Commerce Committee for review. But FCC spokeswoman Elizabeth Rose defended the current policy, saying, "we are making every effort to make sure these schools get funding, [but] the program couldn't be fully funded because there was a ton of political heat." Meanwhile, Sen. Conrad Burns R-MT and Rep. Billy Tauzin R-LA plan to reintroduce legislation to fund the e-rate program through a telephone tax that they say will help reduce funding disparities in the technology subsidy program for schools and libraries. Burns plans to enlist the help of Senate Majority Leader Trent Lott R-MS, Senate Finance Committee chairman William Roth Jr. R-DE, and Senate Appropriations Committee chairman Ted Stevens R-AK.
Cyberporn: VA Law Upheld, Federal Commission Decried
   The Fourth Circuit Court of Appeals upheld a Virginia law that prohibits state employees from using government-owned computers to access sexually explicit material on the Internet. But university professors affected by the ruling say the court's decision extends far beyond previous precedents in threatening their academic freedom. The ruling comes just two days after the House of Delegates voted 99-0 to repeal the law. The case may prove to be an embarrassment to Republican Gov. James Gilmore, who is trying to promote Virginia's reputation as a tech-savvy state.
    Many in the technology community are complaining about the makeup of the Child Online Protection Commission, insisting the five members appointed by Senate Majority Leader Trent Lott R-MS do not adequately represent the full case of players in the debate about free speech and pornography on the Internet. The appointees are anti-porn activist Donna Rice-Hughes, Arthur Derosier of Montana, Albert F. Ganier of Tennessee, C. Bradley Keirnes of Colorado and Karen L. Talbert of Texas.
Education: Tax Issues Coming Down The Pike
   The Senate Finance Committee is expected to hold a hearing on education tax issues within the next few weeks that will include a discussion of legislation to allow employees to receive tax-free financial help from their employers for higher education. The hearing on the bill, which is backed by some high-tech companies, may take place Feb. 23, though a date has not yet been finalized. The bill, introduced by Sen. D. Patrick Moynihan D-NY, would permanently extend a tax benefit that allows employees to receive up to $5,250 in tax-free annual tuition assistance from their employers for undergraduate education and also would restore coverage for graduate level education. A similar bill has been introduced in the House by Rep. Sander Levin D-MI. Current law, which only covers undergraduate expenses, is set to expire May 31, 2000.
Cyberterrorism: Budget Questions, Business Actions
   Rep. Connie Morella R-MD, chair of the House Science Committee technology panel, criticized the White House for not devoting more than the promised $1.46 billion to focus on tech research in combating cyberterrorism. Of the amount, about $240 million will go toward civilian programs, with $1.2 billion slotted for defense, according to a Commerce Department official.
    The U.S. Chamber of Commerce and the FBI will develop a joint program to challenge economic espionage, including cyber-espionage, FBI director Louis Freeh announced. He stressed that the FBI has been honing in on such cases for some time, but said that a joint venture with the private-sector law enforcement is now essential to alert the business community of certain kinds of threats.