November 22, 2008
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Issue Of The Week: August 19, 2002
Campaigns A Faint Blip On Tech Radar
by Bara Vaida

     The political and policy dynamics have changed significantly in the past two years, and that is evident in the technology industry's approach to the 2002 campaigns.
     Unlike in 1998 and 2000, when the value of high-tech stocks was sky high and the industry's money was a target of both parties' interest, the industry appears to be playing a much lower profile this year. Many priority high-tech policy items over the past year, such as presidential trade-negotiating authority and education reform, also have been resolved, leaving few hot-button issues to spur the high-tech community's interest in particular House or Senate races.
     "The atmosphere is very different today than two or four years ago, when tech was the darling to both parties and there was this awareness that candidates needed to be attractive to the high-tech community," said Mark Heesen, president of the National Venture Capital Association (NVCA) and head of its VenturePAC, which has distributed about $950,000 this election cycle, according to Political MoneyLine. "There are long-term issues out there that are important to the high-tech community, like broadband, but not in the short term. Most high-tech issues have been addressed in this Congress, so the plate isn't as full as it was two or four years ago."
     Another factor influencing industry's attention to the campaign is the lack of competitive races in well-known high-tech districts. The vast majority of House incumbents, including those in the San Francisco Bay area, Massachusetts and Seattle, are seeking re-election in "safe" districts. And the competitive Senate races are not necessarily in states with major high-tech regions.

The Most Competitive House Races
     Still, some races could have some impact on the high-tech community. This fall, National Journal's Technology Daily will be highlighting a few competitive races, chosen because the candidates are active in high-tech issues, because industry officials donated funds to the candidates or because tech companies have operations in those districts or states.
     In the House, the most competitive races are the result of redistricting. The contests Technology Daily will follow include:

Connecticut 5: Two incumbents, Republican Nancy Johnson and Democrat James Maloney, are competing. Some high-tech interests support the 10-term incumbent Johnson against Maloney because of her longstanding advocacy for a permanent research and development tax credit. Johnson has raised more money than Maloney, who has vowed to serve only one more term. Johnson has an edge in the polls, according to CNN.

Illinois 19: Incumbents John Shimkus, a Republican, and David Phelps, a Democrat, are the contenders. The high-tech community supports Shimkus, a member of the House Energy and Commerce Committee whose most recent tech-related work was to try to thwart an effort by the European Union to impose a value-added tax on e-commerce transactions. Shimkus has raised more money than Phelps, and the district leans Republican.

Maryland 8: Redistricting resulted in more registered Democrats in Republican Constance Morella's district, making her among the most vulnerable Republicans. The tech community supports her because she is a member of the House Science Committee and chaired its Technology Subcommittee. Morella has supported the National Science Foundation and National Institute of Standards and Technology. Her potential Democratic foes include state Delegate Mark Shriver and state Sen. Christopher Van Hollen. The primary is Sept. 10.

Mississippi 3: Republican Charles (Chip) Pickering and Democrat Ronnie Shows, both incumbents, are challenging one another. The high-tech community supports Pickering, who once was the telecommunications aide to Senate Minority Leader Trent Lott, R-Miss. He has worked on high-speed and wireless issues. But the financial scandal at WorldCom could hurt Pickering, who has accepted $82,000 in donations from the company since 1996.

Pennsylvania 17: Incumbent Republican George Gekas faces Democratic colleague Tim Holden. High-tech companies support Gekas, chairman of the House Judiciary Immigration and Claims Subcommittee. Holden currently holds the fundraising lead, but the district has more registered Republicans than Democrats.

The Rest Of The Best House Contests
     Other House races that might bear watching include:

Arizona 1: This is an open seat with numerous candidates from both parties in the Sept. 10 primary. Arizona has an increasing number of high-tech employees.

Nevada 3: This new seat features Democratic candidate Darreo Harrera, a county commissioner who has been heavily backed by the moderate New Democrat Network, which receives campaign donations from high-tech companies. The Republican candidate is state Sen. Jon Porter.

New Hampshire 1: The seat is open, as incumbent Republican John Sununu is running for the Senate. The Democratic candidate is state Rep. Martha Fuller Clark, while almost a dozen Republicans are vying in the Sept. 10 primary. The state has several high-tech companies.

     Two other races are being watched because the incumbents -- Reps. Robin Hayes, R-N.C., and John Tanner, D-Tenn. -- supported trade-negotiating authority despite pressure not to do so.

Snapshots Of The Senate Campaigns
     In the Senate, some of the tight races of interest to the tech community include:

Arkansas: Incumbent Republican Tim Hutchinson faces a tough challenge from state Democratic Attorney General Mark Pryor. Pryor has support from the New Democrat Network, but some high-tech companies may support Hutchinson after the Democratic Senatorial Campaign Committee ran attack ads earlier this month because of Hutchison's opposition to a mandate that companies record employee stock options as expenses. Microsoft has contributed to Hutchinson.

Colorado: High-tech lobbyists support the re-election of Republican incumbent Wayne Allard because of his support of their issues. The state also has a concentration of telecommunications companies. Microsoft and Sun Microsystems have contributed to Allard, while Tom Strickland, the former Democratic state attorney general, has the New Democrat Network's support.

Minnesota: NVCA's VenturePAC supports Republican challenger Norm Coleman because he has a moderate business record. Democratic incumbent Paul Wellstone is among the most liberal members of the Senate. "Paul has never supported a business or tech agenda," Heesen said.

Missouri: VenturePAC also supports Republican challenger James Talent against Democratic incumbent Jean Carnahan. Talent is a former member of the House Small Business Committee and supported business issues, Heesen said. AOL Time Warner and eBay support Carnahan.

New Jersey: Incumbent Democrat Robert Torricelli was not expected to face a tight race until he received a rebuke from the Senate Ethics Committee. Now he is in a dead heat with opponent Douglas Forrester. The state hosts the U.S. offices of consumer electronics companies like Panasonic, and both Microsoft and AOL have donated to Torricelli's campaign.

New Hampshire: Democratic Gov. Jeanne Shaheen will face either incumbent Republican Robert Smith or Sununu. The primary is Sept. 10. Shaheen polls well against Smith but not as well against Sununu. Microsoft has contributed to Smith.

Texas: Republican state Attorney General John Cornyn and Democrat and former Dallas Mayor Ron Kirk are in a dead heat to replace retiring Republican Phil Gramm. Cornyn is favored, but some high-tech and other outside state interests have given to Kirk's campaign. EBay has donated to both Cornyn and Kirk.

South Dakota: This race is perceived as a test of loyalty to Senate Majority Leader Thomas Daschle. Republican Rep. John Thune is challenging incumbent Democrat Tim Johnson, and Republicans have spent a lot of money in the race. The state also has more registered Republicans than Democrats. AOL gave to Johnson's campaign, and many Gateway Computer offices are located in the state.




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