On The Hill
In The Dead Of Night, Tech Bills Win Passage
     In a marathon session that ran into last weekend, Congress cleared to President Bush various technology-related measures. The push to conclude the 109th Congress saw action on legislation to renew the research and development tax credit and expand trade relations with Vietnam. Lawmakers had been working toward a deal on those key issues throughout the post-election session, and it represents a big win for the technology sector. The Senate also cleared a bill, H.R. 4709, to criminalize the practice of "pretexting," or obtaining confidential phone records under false pretenses. Another measure, H.R. 1674, would strengthen the tsunami forecast and warning system in the Pacific Ocean and expand it to the Atlantic Ocean, Caribbean Sea and Gulf of Mexico. Other measures sent to Bush would combat Internet fraud, create an electronic reporting system for health research and expand technology sales to India.

Privacy
Industry Lauds Action On Bill To Protect Phone Data
     High-tech and telecommunications players lauded last-minute congressional action on a telephone privacy bill, H.R. 4709. They called the measure, which targets Internet-based brokers who fraudulently obtain and sell customer records, a win for American consumers. Widespread support for the legislation came after a spying scandal that rocked the computer manufacturer Hewlett-Packard. Executives there used "pretexting" and other tactics to try to identify media leaks. U.S. Telecom Association President Walter McCormick said the measure "will reinforce the efforts of telecom carriers to ensure that customer records remain secure." Jeannine Kenney of Consumers Union said criminalizing pretexting is a "strong first step," but Congress needs to require phone companies to adopt stronger privacy safeguards and ban them from sharing private phone records with business partners without consumer consent.

On The Hill
Innovation Not Part Of Democrats' 100-Hours Agenda
     People who are eager for action on the innovation agenda of House Democrats or President Bush's American competitiveness initiative will be waiting longer than the first 100 hours of the 110th Congress. Innovation did not make the cut of incoming House Speaker Nancy Pelosi, D-Calif., for that symbolic timeframe under her leadership. Instead, she promised to take up measures that would raise the minimum wage, fix the Medicare prescription-drug program, institute ethics reforms and "cut the link between lobbyists and legislation." But Pelosi spokeswoman Jennifer Crider said innovation "definitely will be a high priority early in the Congress." One item in the 100-hours list could be helpful to technology workers. Pelosi plans to cut interest rates for student loans in half, and TechNet Vice President Andrea Hoffman said that could help mathematics, science or engineering students. Pelosi also will create a House Appropriations subcommittee to oversee intelligence funding.

Privacy
Sen. Leahy Promises More Oversight, Privacy Protection
     Vermont Democrat Patrick Leahy promised a fresh start for the Senate Judiciary Committee he will lead come January, and that includes a concerted effort to protect Americans' privacy. Leahy spoke of Congress' duty to restore constitutional values and the rights of ordinary citizens; repair the broken oversight process; and renew government accountability. Infuriated by a lack of answers from Attorney General Alberto Gonzales when Gonzales testified about anti-terrorism wiretaps this year, Leahy said Gonzales can "expect an invitation" to Senate Judiciary soon. If more light is not shone on the electronic eavesdropping, Leahy is prepared to use the committee's subpoena power. This White House has "systematically eroded Americans' privacy rights" through its wiretapping and the creation of databanks and dossiers on law-abiding citizens, he said, adding that the president needs to stop treating privacy as "an expendable commodity."

On The Hill
Sununu To Undertake Allen's Senate Tech Agenda
     Sen. John Sununu of New Hampshire will inherit the main technology priorities of fellow Republican George Allen in an attempt to keep the Virginian's legislative legacy alive. Multiple sources said Sununu will carry the Republican torch on three Allen tech priorities: banning Internet taxes; fostering wireless, high-speed Internet services; and restricting secretly installed spyware. But with Democrats set to control Congress, they likely would be the main authors of any fresh bills in those areas, with Sununu as the top Republican co-sponsor. Allen has long fought to make permanent the Internet tax moratorium, which is designed to promote the accessibility of Internet service. He has worked with Sen. Ron Wyden, D-Ore., and now Sununu is expected to do so. Another Allen measure would spur the deployment of wireless broadband by utilizing unassigned or unused broadcast television spectrum called "white space." Spyware, the third Allen priority going to Sununu, monitors computer activity.

Telecom
Ties To Key GOP Senators Could Help Telecom Firms
     For years, BellSouth has been contributing heavily to a popular and prominent Republican senator in its territory: Mitch McConnell of Kentucky. Now those connections could prove valuable as McConnell becomes Senate minority leader next year. "It's helpful to have him on your side, but it's not dispositive," BellSouth spokesman Bill McCloskey said, explaining that Democrats will take the lead on telecommunications in 2007 but will only control the upper chamber by two seats. As a result, McConnell and incoming Minority Whip Trent Lott, R-Miss., could be key to any telecom negotiations. "Anybody who's in leadership is important to moving bills to the floor," McCloskey said. Lott had close ties to MCI WorldCom, now part of Verizon Communications, when it was headquartered in Jackson and was his state's largest employer.

Television
Michigan Lawmakers Clear Bill On Video Franchises
     The Michigan legislature cleared to the governor legislation that would streamline the state's video-franchising rules. The state Senate passed an amended version of the bill by a vote of 26-12, and the state House quickly endorsed the changes as the legislature ended this year's session. The bill would allow new entrants to the state's video services market to bypass localities by negotiating statewide franchises. The state currently requires entrants to separately negotiate franchises with localities. Gov. Jennifer Granholm is expected to sign the bill. Spokeswoman Liz Boyd said Granholm believes the measure is "good for consumers and good for Michigan." The measure was pushed hard by AT&T, which last month promised to invest $620 million and create 2,000 jobs in Michigan over the next three years as it offers video service there.

Business
Regulators Offer Guidance On Obeying Accounting Law
     Federal securities regulators proposed new guidance for companies seeking to comply with the 2002 accounting law known as the Sarbanes-Oxley Act. The Securities and Exchange Commission specifically addressed Section 404 of the act, which requires companies and their independent auditors to separately assess firms' internal financial controls. Some lawmakers and business groups have said the rule is too costly and burdensome. The new guidance is focused on two principles for evaluating internal controls. The first one calls on managers to focus on controls aimed at preventing or detecting "material misstatements" in their financial statements; the second calls on firms to gather information "about the operation of the controls being evaluated based on its assessment of the risk associated with those" controls.