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November 16, 2001
Executive Summary
Week of November 12, 2001
by Sharon McLoone
Taxes
Senate Clears Bill For Two-Year Net Tax Ban
The Senate approved legislation that extends a moratorium on Internet-related taxes for two years, and President Bush plans to sign it, although he preferred a longer period of tax relief. The Senate, by voice vote, renewed the tax ban that was enacted three years ago but expired Oct. 21. Senators rejected, on a 57-43 vote, an amendment that could have led to future collection of state taxes on Internet sales and even Internet access. The proposal would have required a congressional vote to allow sales-tax collections after 20 states agreed to collect for each other.
Broadband
House Likely To Vote On Tauzin-Dingell Bill
In a victory for the regional Bell telephone companies, the House is expected to vote on broadband Internet legislation in the weeks after the Thanksgiving recess. A breakthrough on the bill came after House Speaker Dennis Hastert, R-Ill., intervened recently and directed Judiciary Committee Chairman James Sensenbrenner, R-Wis., to reach a compromise, according to sources close to the situation. Also on the Hill this week, lawmakers and dozens of industry executives gathered to combat the push for a vote on the bill, saying the measure would have "devastating consequences" on the economy and the telecommunications industry. "The economy has begun to slide, and I think it is inarguable that the concepts embodied in the Tauzin-Dingell bill would aggravate a shaky economy," Rep. John Conyers, D-Mich., said during a press conference on the bill. House Energy and Commerce Committee Chairman W.J. (Billy) Tauzin, R-La., and ranking Democrat John Dingell of Michigan authored the measure.
Privacy
Sen. Feinstein Proposes Biometrics Clearinghouse
California Democrat Dianne Feinstein, chairwoman of the Senate Judiciary Technology, Terrorism and Government Information Subcommittee, said she would work to create a clearinghouse of information on biometrics standards to be used in bolstering the security of the nation's computer networks and other critical infrastructure. At a hearing, she noted that more than 140 biometrics companies are fiercely competing to have the government use their technology for security, but she said there is no clear way for the government or the private sector to identify which technology works best. "The industry is fragmented, doesn't have a standard and doesn't work well together," Feinstein said. "If the government doesn't get involved to develop a standard ... I'm afraid there will only be a piecemeal adoption of biometrics technology."
Cyber Security
Bond Suggests Rewrite Of Information-Sharing Rules
Laws governing how the private sector communicates with and aids the government with various activities are proving to be a roadblock to better security, a top U.S. official said. As the Commerce Department technology undersecretary, Phil Bond has been designated to serve as the high-tech community's liaison to the federal government. But Bond cautioned that the rules governing the interaction between government and the private sector are hampering efforts to create efficient public-private partnerships that could help solve new homeland security challenges. "Maybe we need to rewrite" some of the rules "now because these are not normal times," Bond told legislative staff gathered at a luncheon sponsored by the Congressional Economic Leadership Institute. He noted that the key to confronting new challenges is stronger partnerships that could facilitate the use of new technologies "central" to countering terrorism.
E-Government
Davis Plans To Hold Hearings On Govnet Project
A House subcommittee chairman announced plans to hold an oversight hearing on the Bush administration's proposed government-only Internet called Govnet. Virginia Republican Tom Davis, chairman of the Government Reform Technology and Procurement Policy Subcommittee, said he plans to hold the hearing in late January or early February. Davis told attendees at a breakfast discussion on government procurement of information technology that he is working closely with government officials analyzing private-sector proposals for Govnet. "I am going to work with ... the National Security Council to ensure that the government develops a sound business plan with realistic goals for such a large and complex acquisition," Davis said, according to his press secretary, David Marin. During the breakfast, Davis also noted that the government spent $45 billion on IT purchases the past fiscal year.
E-Government
House Panel Approves Election-Reform Measure
The House Administration Committee voted 8-0 to approve an election-reform bill that would establish minimum state voting standards and authorize $2.65 billion over three years to help local and state jurisdictions improve their election systems. After months of discussions, committee Chairman Bob Ney, R-Ohio, and ranking Democrat Steny Hoyer of Maryland produced a bipartisan bill with about 75 cosponsors, although some people within civil rights and disability groups favor a competing measure, S. 565. The Ney-Hoyer bill, H.R. 3295, would authorize $400 million for an immediate buyout of the punch-card voting systems that sparked controversy in the 2000 presidential election in Florida. The money would cover 90 percent of the costs up to $6,000 per precinct. The bill also would authorize up to $2,000 per precinct to enhance other voting equipment.
Net Governance
Internet Oversight Body Could Undergo Restructuring
On the final day of the annual meeting of the Internet Corporation for Assigned Names and Numbers (ICANN), board members were faced with tough questions on how to involve the public in its decisions. This could lead to changes in ICANN's structure, sources here said. The ICANN board was expected to form a committee on restructuring at its meeting, sources said. Proposals to restructure ICANN's representation are circulating. One would increase the number of board members and establish supporting organizations for: country-code domain-name suffixes such as .us; generic domains such as .com or .museum; registrars, which provide the majority of ICANN funding; and at-large representatives from six geographic regions.

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