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Lawmakers Predict Privacy Pre-emption
by Liza Porteus
A bill that would pre-empt state attempts to adopt comprehensive privacy laws is the "most likely" technology-related measure Congress will pass this year, two lawmakers said Wednesday.
In an interview with National Journal's Technology Daily, Virginia Democrat Rick Boucher, a co-chairman of the Congressional Internet Caucus, said there is an "emerging consensus" within the tech industry for a federal privacy measure. Fellow caucus co-chairman Bob Goodlatte, R-Va., also participated in the discussion with Technology Daily.
Boucher said a federal privacy measure likely would: pre-empt state privacy laws; require the disclosure of how and what personal information of their customers companies use; allow consumers to "opt out" of such information sharing; and apply to both online and offline transactions. The bill would not supersede existing federal privacy rules such as those enacted in the 1999 Gramm-Leach-Bliley banking law or the medical privacy rules promulgated under the 1996 Health Insurance Portability and Accountability Act.
Florida Republican Cliff Stearns, chairman of the House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection, and full committee Chairman W.J. (Billy) Tauzin, R-La., have held hearings on the subject and plan to introduce a measure this year. Their measure also would ban private privacy-related lawsuits.
"We cannot have several different policies ... especially in 50 different privacy policies on something as ubiquitous as the Internet," Goodlatte said. But he noted that if Congress passes a comprehensive privacy bill, "the fear will be that as this train starts leaving the station, it may end up in a very different place" than where lawmakers intended. It is important to "not take the information out of the information age."
But state attorneys general have promised to fight a federal privacy bill. The National Association of Attorneys General (NAAG) passed a resolution last year urging that any federal legislation on consumer privacy and business information practices allow state attorneys general to enforce the law in state or federal court. The resolution also calls for any federal legislation to authorize attorneys general to obtain injunctive relief, consumer restitution, civil penalties, fees and costs, and any other remedies applicable under state law for privacy violations.
States and lawmakers like Sen. Patrick Leahy, D-Vt., have stressed that federal legislation should be a floor, not a ceiling.
In an interview last October, Washington Attorney General Christine Gregoire said attorneys general were giving the business community and Congress until this month to craft effective privacy legislation. "I think you may find a number of attorneys general who are going to introduce legislation in their states" if Congress does not act by then, said Gregoire, who co-chairs the NAAG Internet Committee.
The Next Technology Frontiers
California needs to stay ahead of the curve in technology innovation because its economic recovery depends on success in that realm, Gov. Gray Davis said last week at the Orange County Next Generation Internet and Technology World Wide Webcast.
Davis plans to provide one Internet-ready computer for every five high-school students and would like to expand technology in classrooms and training for teachers so they know how to use it. He also wants to ensure that advanced-placement courses are available online to all students. "I've worked hard to put the power of the Internet at the fingertips of every child," Davis said.
He also hailed the ability of the high-speed Internet2 to bring the research capability from the University of California system to students across the state. And he noted that California has invested $4 million in four state campuses, including for the University of San Diego and the University of California at Irvine for research activities, and that one out of five patents awarded in the country goes to California researchers.
"Innovation is what we do best -- and we've invested in innovation big time," Davis said during a question-and-answer session.
Davis also stressed the need to increase business opportunities for California firms in foreign countries and to attract foreign businesses to California -- and particularly to strengthen the state's economic ties with Mexico.
In Texas, meanwhile, Gov. Rick Perry recently announced the creation of the Governor's Council on Science and Biotechnology Development, whose mission is to create a seamless system of innovation from the lab to the marketplace in areas such as bioinformatics and nanotechnology.
Bioinformatics is the integration of math, science and computer methods into biological research, while nanotechnology involves the manipulation of materials on a molecular scale. The council will explore ways to improve health care, agriculture and technology in Texas while ensuring that new innovations and discoveries come out of state labs and schools. Perry also has asked the council to explore ways to attract more federal research dollars, and to develop a strategy to increase research and development expenditures.
Ashley Smith, a senior adviser on the governor's staff, former member of the Texas House and former chairman of the Southeast Texas Biotechnology Park, has been named chairman of the panel.
TechNet To Open Seattle Lobby Shop
TechNet CEO Rick White said in a recent interview with National Journal's Technology Daily that the Silicon Valley-based lobbying group plans to open a Seattle node in the spring. The group currently has regional nodes in Austin, Texas; Boston; Indianapolis; Los Angeles; and California's Orange County.
TechNet's focus at the federal level this year will include advocating a national broadband policy and revising accounting standards, and the group's agenda in Massachusetts mirrors the federal one, White said. In Texas, meanwhile, TechNet will focus on education.
AeA Focuses On State Policies
The electronics trade group AeA last week focused its state policy discussions on procurement of government contracts, high-speed Internet deployment, taxes, Internet privacy and education during its State Action Policy Network meeting in California.
Darby Patterson, editor in chief of Government Technology Magazine, spoke about e-government trends and opportunities. The value of that market is expected to double in five to eight years, from the current $78 billion annually.
Texas Public Utility Commissioner Brett Perlman discussed the importance of broadband services to state economic development and the challenges urban and rural areas face in ensuring sufficient access to high-speed connections.
Stephen Levy, of the Center for the Continuing Study of the California Economy, talked about the impact of state budget crises on the technology industry and focused on the concern that state legislatures hungry for tax revenue will turn to the high-tech industry as it emerges from the economic downturn.
And Mary Jane Pearson of the Education Department also discussed the implications of the new education law for the states.
Voters Survey Homeland Security
Most voters approve of the way their respective governors are handling homeland security since the Sept. 11 terrorist attacks, according to Public Opinion Strategies. The organization's recent survey, conducted on behalf of Pfizer, showed 77 percent approval of the governors' work.
The survey shows that voters also realize that state governments do play a role in homeland security, and 33 percent say state governments bear most of that responsibility. Another 26 percent say states and the federal government should be equally responsible, while 26 percent say the federal government should bear most of the responsibility.
While 75 percent say securing border areas is a federal responsibility, only 29 percent say that about preparing for bioterrorism.
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