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September 20, 2002
Executive Summary
Week Of Sept. 16, 2002
by Sharon McLoone
Security
Administration Official Defends Cyberspace Security Plan
The White House this week unveiled its draft plan outlining recommendations for securing the nation's cyberspace. The document had been intended to be a comprehensive strategy, but several weeks before its release, the administration demoted it to a "rough draft" with a 60-day comment period. In addition, several controversial recommendations -- including requiring Internet service providers to assume greater responsibility for their users' security and admonishing against the security of wireless Internet connections -- were dropped. While the tech industry in general received the plan warmly, some people criticized it. Al Gidari, an attorney at Perkins Coie in Seattle, criticized the assumption that computer networks are a national resource. "It is the nation's critical infrastructure," he said. "The nation didn't build it, they don't operate it, and they don't run it."
Security
Senators Refuse To End Debate On Homeland Security Bill
In a procedural move that underscored the rigid party differences over the proposed Homeland Security Department's employment rules, the Senate voted along party lines to continue debating legislation to create the new Cabinet-level agency. The 50-49 vote comes as negotiations intensify over the civil-service rules that have bogged down the bill. Arlen Specter, R-Pa., considered to be a key undecided vote, said he might offer his own proposal to break the partisan standoff. Rhode Island Republican Lincoln Chafee, another key senator, said he remains undecided. John Breaux, D-La., said after the vote that talks of a compromise he has crafted with Ben Nelson, D-Neb., are "ongoing." Meanwhile, the National Governors Association said that governors are well positioned to coordinate their state organizations and "first responders" to emergencies to lead a bottom-up approach to homeland security.
Intellectual Property
House Committee Chairman Offers Digital Television Bill
House Energy and Commerce Committee Chairman W.J. (Billy) Tauzin, R-La., has released a draft of legislation that would direct the FCC to require all devices capable of receiving digital broadcast signals to incorporate copyright-control technology. Within six months of the legislation's passage, the FCC would have to develop rules for requiring devices by January 2006 to include a "broadcast flag" to prevent the unauthorized redistribution of digital TV content over the Internet. The requirement would be part of a broader bill designed to force the rollout of digital TV by the end of 2006 -- a deployment that is well behind schedule. In July, Tauzin and Senate Commerce Committee Chairman Ernest (Fritz) Hollings, D-S.C., urged the FCC to draft regulations on the broadcast flag. The flag is controversial among high-tech and electronics companies, as not all agree on technology that has been developed. Many also oppose the idea of government setting technology mandates. Under Tauzin's bill, the FCC would establish "an expedited process, which may include self-certification." The agency would determine which technologies satisfy the goal to protect digital content.
Privacy
Sen. Sarbanes May Try To Toughen Financial Privacy Law
Senate Banking Committee Chairman Paul Sarbanes officially turned his sights on financial privacy this week, confirming deep industry concerns that he intends to use the weight of his chairmanship to pry open and toughen the much-belabored privacy protections of the 1999 Gramm-Leach-Bliley Act. Although Sarbanes, a Maryland Democrat, did not expressly say he is preparing for a battle, several witnesses siding with his viewpoint spoke as though a decision by the chairman to embark on an aggressive course was a fait accompli.
E-Commerce
Anti-Gambling Bill Supporters Press For Action
Leaders of the House Financial Services Committee are pressing House leadership to set a floor date for a vote on legislation to curb Internet gambling. Committee Chairman Michael Oxley, R-Ohio, said that several members of the financial services industry have tossed support behind a a measure, H.R. 556, sponsored by Rep. Jim Leach, R-Iowa. The bill would ban the use of most financial instruments in online gambling transactions. American Express, Citigroup, Discover, Household, Morgan Stanley and PayPal formally endorsed the measure this week, Oxley said. The endorsements come just as FBI Director Robert Mueller told the committee in a hearing that Internet gambling is a "substantial problem" for law enforcement in their hunt for terrorist financing. Although congressional sources said a House vote on the measure is more than likely, several major groups such as the American Bankers Association still oppose it.
On The Hill
Senate Panel Approves Handful Of Technology-Related Bills
The Senate Commerce Committee voted to give the FTC the ability to regulate and investigate consumer practices in the telecommunications industry, approving the expanded authority as part of a bill to reauthorize FTC programs. At the same time, the committee approved measures that would double funding for the National Science Foundation, authorize the National Institute of Standards of Technology to help create standards for integrating technology, and create a structure and funding mechanism for federal research into nanotechnology.
Taxes
Senators Add Broadband Credit To Economic Relief Bill
The chairman and ranking Republican of the Senate Finance Committee have included a provision to offer tax breaks for the deployment of high-speed Internet services, as well as enhanced expensing for small businesses, in the chairman's version of legislation designed to provide economic relief to farms and small businesses. The legislation would provide a 10-percent tax credit to firms offering broadband services to rural and underserved areas, and a 20-percent credit to those offering advanced broadband services. The provision mirrors separate legislation introduced in the Senate and House. On the House side, supporters of broadband tax credits have been circulating an e-mail to get enough co-sponsors so that House leaders will be willing to consider their bill, H.R. 267, on the floor. Rep. Adam Smith, D-Wash., urged members of the New Democrat Coalition to back the plan.
E-Government
Four Agencies Bridge Gap To Secure E-Document Exchanges
Marking a milestone in the rollout of e-government, several federal agencies finalized interoperability agreements that will enable them to securely send documents and communicate online. The Federal Bridge Certification Authority, a group operated by the General Services Administration, announced that it had certified the Defense and Treasury departments, the Agriculture Department's National Finance Center, and the National Aeronautics and Space Administration to securely send digitally signed documents using a technology called public key infrastructure (PKI). Under the system, federal agencies issue employees PKI certificates, which can be used to sign and verify the origin of electronic communications or documents. The new certifications authorize the PKI systems at each agency to recognize and communicate with each other, giving workers confidence that the documents they receive online are from trusted sources.
Education
Tech Luminaries Share Visions Of Education In The Future
Technology will be a great motivator to student learning and will enable teachers to tailor their classes to individual student needs, according to a group of academics, educators and executives who wrote about their visions for the future in a new Commerce Department report. The report, called "2020 Visions," contains 14 essays on how technology may impact education in the future. Microsoft Chairman Bill Gates and WorldCom Senior Vice President Vinton Cerf were among the authors of the report.

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