Lobbying
Trade Group Forming To Push 'Open Source' Advocacy
     In an effort to raise the profile of "open source" software development in Washington, the Computer and Communications Industry Association (CCIA) is spearheading a group tentatively named the Open Source and Industry Alliance. CCIA President Ed Black said the group "would be a public policy advocate for open-source software," a style of software development in which codes are available for public inspection -- as opposed to the more conventional proprietary model that hides programming commands. "We are focused on growing open source and the companies that are its users, builders and implementers," Black said. "This is not part of an anti-Microsoft plan; it's pro-open source."

Defense
Rep. Weldon Predicts Defeat For 'Buy American' Language
     A provision that would limit Defense Department procurement to U.S. companies will be defeated during House-Senate negotiations over the Defense appropriations bill for fiscal 2004, a House lawmaker said. "We're not going to stop our cooperation with our allies," Rep. Curt Weldon, R-Pa., told an audience of government officials and defense technology contractors. "We will back off." Weldon praised the sponsor of the Buy American Act, House Armed Services Committee Chairman Duncan Hunter, R-Calif., but said curtailing cooperation with tech companies in allied countries would negatively impact the U.S. military. Weldon said the best solution to U.S. security problems is to significantly increase funding but noted that budget deficits make that difficult. Therefore, he said, the military has to "work smarter" and buy more off-the-shelf technology.

E-Commerce
Officials For Asia-Pacific Nations To Debate Privacy, Spam
     Officials and industry representatives from nations bordering the Pacific Ocean will gather next week to discuss a full range of Internet issues, including launching talks on the growing problem of unsolicited commercial e-mail, or spam. The Asia-Pacific Economic Cooperation (APEC) "is taking on a range of issues that are critical to the success of electronic commerce, including privacy, security and digital trade," said Michelle O'Neill, the U.S. deputy assistant Commerce secretary for information technology industries. "Along these lines, we are looking forward to beginning our discussion on spam. The high level of the content discussed in these meetings underscores the importance of the U.S. government's continued participation." The APEC Electronic Commerce Steering Group, which O'Neill currently chairs, will meet in Phuket, Thailand, from Aug. 13 to Aug. 16.

Taxes
States Head To Capitol Hill For Help On Sales Taxes
     Twenty states have enacted legislation that would dramatically simplify their sales-tax systems, so they have taken their effort to Congress for approval. When federal lawmakers return to work in September, they are expected to offer legislation that would grant states the authority to collect sales taxes on remote sales, such as those conducted via the Internet or by catalog. Rep. Ernest Istook, R-Okla., is signing up sponsors for legislation that would endorse the state simplification effort, giving states the authority to require retailers to collect sales tax on purchases made by buyers who live outside the state where businesses are located, according to his staff. He plans to introduce the bill in the fall.

On The Hill
Lawmakers Introduce Measures To Dilute Anti-Terrorism Bill
     Before lawmakers left for their August recess, they introduced a flurry of bills that aim to dilute portions of the sweeping anti-terrorism law known as the USA PATRIOT Act. One bill, S. 1552, seeks to curtail the expanded surveillance powers granted to law enforcement by the act, which was enacted shortly after the Sept. 11, 2001, terrorist attacks. Sen. Russ Feingold, D-Wis., the only senator to vote against the 2001 measure, and Reps. Bernard Sanders, I-Vt., and C.L. (Butch) Otter, R-Idaho, introduced similar bills. The measures offered by Feingold and Sanders address a controversial provision permitting police to access library, bookstore, medical and other business records without stringent requirements. Meanwhile, Otter successfully added to a fiscal 2004 spending bill language that would block federal funding for police to conduct secret searches authorized by the PATRIOT Act.

On the Hill
Security Lapses And Budget Concern Sen. Byrd
     In a letter to Homeland Security Secretary Tom Ridge, Sen. Robert Byrd, D-W.Va., blamed the Bush administration for failing to allocate funds for critical high-tech homeland security devices and research and development. Though he did not directly blame Ridge for the lapses, Byrd said he is "deeply troubled" that the department's Transportation Security Administration (TSA) is running a $930 million shortfall with two months left in fiscal 2003. As a result, Byrd said $265 million appropriated by Congress for airport explosive-detection equipment has been delayed, and R&D for advanced explosive-detection equipment has been significantly cut. Byrd blamed Bush for not approving more than $900 million earmarked for TSA in last summer's $2.5 billion emergency spending package.

On The Hill
Sen. Hollings' Departure Leaves Tech Industry Guessing
     As soon as South Carolina's senior senator announced that he would not seek re-election next year, technology industry officials began speculating about who would take the ranking Democrat's place on the Commerce Committee. Next in line of succession after Ernest (Fritz) Hollings is Sen. Daniel Inouye, D-Hawaii, followed by Sen. John (Jay) Rockefeller, D-W.Va. Industry sources said Inouye has not been a big player in the telecommunications and technology arena and might prefer to concentrate on other areas of interest. Inouye serves on the Appropriations Committee, where he is the second-ranking Democrat, behind Sen. Robert Byrd of West Virginia, and Inouye is vice chairman of the Senate Indian Affairs Committee. Rockefeller has been more actively involved in tech-related issues. But some sources said Inouye would take the Commerce Committee slot. Byrd does not intend to relinquish the minority reins at Appropriations, and there is no reason why Inouye would forgo the opportunity to be the ranking minority member of one of the most powerful committees, they said.