By Brian Krebs
washingtonpost.com Staff Writer Thursday, November 7, 2002; 3:46 PM
The resurgence of a Republican majority in the U.S. Senate heralds
pro-business changes in several key technology policy battles in
Congress, including online piracy, cybersecurity, broadband
deregulation and Internet privacy, tech experts said.
Technology leaders also said legislation to create a Department of
Homeland Security -- which contains a series of online security
initiatives -- will be the top goal of a Republican Senate.
The bill includes measures that would hold federal agencies to tougher
computer security standards and encourage businesses to share
information on computer vulnerabilities with the federal government.
The information technology industry also sees the proposed department
as a procurement gold mine, as the massive new agency would be in the
market for many technology products.
Senate Democrats have held up a vote on the measure because they say
it denies federal workers some of the union rights they now enjoy. The
House has already passed its version of the bill earlier this year.
IT leaders also welcome the power shift for its promise of tax reform
and stronger business incentives.
"The most prominent effect (of the GOP takeover) will be a greater
chance of stimulating investment through research and development
extensions and tax cuts," said Rhett Dawson, president of the
Information Technology Industry Council.
Last month, the council released a report card showing Senate
Republicans voted with the tech industry's stance nearly 85 percent of
the time, compared to 65 percent for Senate Democrats.
Joe Rubin, director of congressional affairs for the U.S. Chamber of
Commerce, said Republican control of the Senate could translate into
"a great deal more capital for tech companies."
"On tech-specific items -- from homeland security to privacy, we think
this is going to have a pretty dramatic impact," Rubin said.
Observers caution that Senate Republican lawmakers still must
cooperate with Democrats to get most things done. Under Senate rules,
at least 60 votes are required to overcome filibusters and other
stalling tactics that can derail bills before they get a vote.
"We'll still have challenges, but hopefully this transition will
provide the extra momentum to get this department and other important
measures approved," said Robert Holleyman, president of the Business
Software Alliance.
Democrats will control the lame-duck session beginning next week,
which will prove crucial because Congress still must pass most of the
appropriations bills that keep the government running. Republicans
still could take over during the lame duck, however, if Missouri
certifies Senator-elect Jim Talent (R), or if Minnesota officials
install Senator-elect Norm Coleman (R) to fill the seat of the late
Sen. Paul Wellstone (D). If Democrats maintain control through the
remainder of the session, the homeland security bill could be delayed
until January.
Changes at the committee chairman level also are expected to alter the
Senate's technology agenda. This would be most apparent in the
Senate Commerce Committee, chaired by Ernest "Fritz" Hollings
(D-S.C.). A champion of broadband, privacy and anti-piracy bills that
emphasize federal spending, he has annoyed Republican committee
members by keeping similar GOP-sponsored alternatives off the table.
Hollings' most controversial proposal -- backed heavily by the
entertainment industry -- would require PC and consumer electronics
makers to embed copy-protection technology into their products.
Sen. John McCain (R-Ariz.) -- with his own more moderate online
privacy and broadband deployment legislation -- will become chairman
in January, however. McCain also has been openly critical of the
Hollings anti-piracy bill.
"The election results certainly put a wooden stake through the heart
of that vampire," the ITI's Dawson said of the Hollings bill.
Hollings also has delayed consideration of a broadband deregulation
bill passed by the House earlier this year. That measure -- sponsored
by Reps. W.J. "Billy" Tauzin (R-La.) and John D. Dingell (D-Mich.) --
would make it easier for Bell telephone companies to enter the
high-speed broadband market.
Observers say that the Tauzin-Dingell bill faces an uphill battle in
the 108th Congress anyway, in part because it would have to be
reintroduced and passed by both houses. The measure has also lost
momentum because many lawmakers and the White House expect the Federal
Communications Commission to vote before the end of the year on a
proposal that would accomplish a similar result.
In addition, Bush administration support for the Tauzin-Dingell bill
has been tepid at best.
"My observation of this White House is that they are very wary of food
fights, and a lot of people view much of what happens in telecom as a
food fight," said former McCain counsel John Timmons, now principal
for the Cormac Group, which has lobbied against the Tauzin-Dingell
bill.
"It's hard for me to imagine the administration getting behind telecom
legislation that does not have broad and deep support," Timmons said.
