| House Passes Cyber Security
Enhancement Act |
7/15. The House passed HR
3482, the Cyber Security Enhancement Act, by a vote of
385-3. See, Roll
Call No. 296.
The bill, which is sponsored by Rep. Lamar Smith
(R-TX), contains provisions relating to sentencing guidelines
for computer hacking crimes, authority of Internet service
providers (ISPs) and others to voluntarily disclosure the
content of communications to law enforcement and other
government entities, appropriations for the National Infrastructure Protection
Center (NIPC), and other topics. The bill further amends
several sections of the criminal code that were amended by the
USA PATRIOT Act late last year.
Industry groups, such as the Business
Software Alliance (BSA), support the bill. Robert
Holleyman, P/CEO of BSA, stated in a release that "The
House today took a much needed step toward protecting this
nation's networks and information infrastructure ... This bill
makes it clear that cyber criminals will be punished."
The Center for Democracy and
Technology (CDT) and the Free
Congress Foundation (FCF) opposed Section 102 of the bill.
Brad Jansen of the FCF stated that "H.R. 3842 is
unnecessary and duplicative. It reduces the accountability of
the government in implementing provisions of the USA PATRIOT
Act, leaving the door open even wider to allowing abuses of
civil liberties and privacy rights of law abiding
Americans."
Section 101 of the bill requires the U.S. Sentencing Commission to
amend the federal sentencing guidelines with respect to
violations of 18
U.S.C. § 1030, which pertains to crimes involving
intentionally accessing a computer without authorization, or
in excess of authorized access.
Section 102 of the bill, which is the most
controversial item, amends 18
U.S.C. § 2702(b), regarding voluntary disclosure of
the contents of communications. Currently, the statute
provides that "A person or entity may divulge the
contents of a communication ... (6) to a law enforcement
agency ... (C) if the provider reasonably believes that an
emergency involving immediate danger of death or serious
physical injury to any person requires disclosure of the
information without delay." The bill would allow the
disclosure "to a Federal, State, or local governmental
entity, if the provider, in good faith, believes that an
emergency involving danger of death or serious physical injury
to any person requires disclosure without delay of
communications relating to the emergency."
Hence, the bill lowers the standard that ISPs and others must
meet before they voluntarily release information -- from
"reasonably believes" to "good faith". It
also removes the immediacy requirement. It also expands the
set of entities to which information can be released -- from
"law enforcement agency" to "to a Federal,
State, or local governmental entity".
Section 103 provides, in full, that "Section
2520(d)(3) of title 18, United States Code, is amended by
inserting ‘‘or 2511(2)(i)’’ after
‘‘2511(3)’’." This amends the computer
tresspasser provision of the recently enacted USA PATRIOT
Act to allow providers to rely on the good faith defense.
Section 104 of the bill authorizes the appropriation
of $125,000,000 for the FBI's National
Infrastructure Protection Center (NIPC) for fiscal year
2003.
Section 105 of the bill amends 18
U.S.C. § 2512, which pertains to the advertising of
certain illegal devices. The statute prohibits the
advertising of "any electronic, mechanical, or other
device, knowing or having reason to know that the design of
such device renders it primarily useful for the purpose of the
surreptitious interception of wire, oral, or electronic
communications." Section 105 of the bill specifically
includes advertising on the Internet.
Section 106 of the bill amends 18
U.S.C. § 1030(c), which pertains to punishment of
crimes involving intentionally accessing a computer without
authorization or in excess of authorized access. For
example, the bill would increase the maximum penalty to life
imprisonment for crimes where the "offender knowingly or
recklessly causes or attempts to cause death".
Section 107 of the bill ensures that providers of
communications remain covered under 18 U.S.C. § 2703(e), a
"no cause of action provision," which protects
providers from law suits when they legally assist law
enforcement with an investigation under the new emergency
disclosure exception created in the USA PATRIOT Act.
Section 108 of the bill amends 18 U.S.C. § 3125,
regarding emergency use of pen registers and trap and trace
(PRTT) devices. Currently, under 18 U.S.C. § 3125, law
enforcement authorities may use PRTT devices for 48 hours in
certain emergency situations, while court authority is being
sought. Section 108 would expand the list of situations to
include "an immediate threat to a national security
interest" and "an ongoing attack on a protected
computer (as defined in section 1030) that constitutes a crime
punishable by a term of imprisonment greater than one
year".
Section 109 of the bill raises penalties for illegally
intercepting cell phone conversations, and increases penalties
for unlawful access to stored communications. |
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| Senate Passes Accounting
Reform Bill |
7/15. The Senate approved S
2673, the Public Company Accounting Reform and Investor
Protection Act of 2002, by a vote of 97-0. The bill creates an
independent board to oversee auditors of public companies,
restricts auditors from providing many consulting services,
requires CEOs and CFOs to be personally responsible for the
accuracy of their companys' financial reports, and gives the Securities and Exchange Commission
(SEC) more resources.
However, the bill contains no provision requiring companies to
treat stock options as expenses. Sen. George Allen (R-VA),
and others, had opposed such language, in part because it
would discourage technology companies from offering their
employees stock option plans.
The House passed a different accounting reform bill, HR
3763, the Corporate and Auditing Accountability,
Responsibility, and Transparency Act of 2002, on April 24,
2002. Differences will have to be resolved in a conference
committee.
Sen. Paul Sarbanes
(D-MD), the sponsor of the Senate bill, stated that "For
nearly seventy years, our framework of securities laws has
proved remarkably effective at protecting investors. Recent
events, though, have shown how urgently this framework needs
reform. We must ensure that investors can once again trust
corporate executives and their financial reports, and have
confidence in the independence of accountants and analysts. We
also must assure that the SEC has adequate funds to carry out
its mandate."
SEC Chairman Harvey
Pitt said in a release
that "the Senate moved one step closer towards meaningful
and effective oversight of accounting regulation in
America." He added that "There is much to commend in
the legislation that has passed in the House and Senate, and
the SEC looks forward now to working with Congressional
leaders in reconciling their proposals and passing a final
bill that will help restore investor confidence and integrity
in America's capital markets." |
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| State Department to Provide
Internet Access to Afghan Government |
| 7/13. The State Department
announced that "U.S. Ambassador Robert P. Finn and
Afghanistan’s Minister of Commerce, Sayed Mustafa Kazemi,
signed an agreement in Kabul July 13 to provide the ministry
with Internet connectivity and 10 computer terminals. The
Center is expected to be functioning within one month. The
grant for the equipment and Internet service, valued at
$50,000, is provided through the U.S. Agency for International
Development ..." See, release. |
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| Government Reform Committee
Revises FOIA Exemption in DHS Bill |
7/11. The House
Government Reform Committee amended and approved HR 5005,
the Homeland Security Act of 2002. This Committee's version of
the bill includes a new Section 214 which provides, among
other things, a Freedom of Information Act exemption for
certain critical infrastructure information voluntarily shared
with the federal government. It would replace Section 204 of
the bill as introduced.
Section 214 provides, in part, that "Notwithstanding any
other provision of law, critical infrastructure information
(including the identity of the submitting person or entity)
that is voluntarily submitted to a covered Federal agency for
use by that agency regarding the security of critical
infrastructure and protected systems, if analysis, warning,
interdependency study, recovery, reconstitution, or other
informational purpose, when accompanied by an express
statement specified in paragraph (2) -- (A) shall be exempt
from disclosure under section 552 of title 5, United States
Code (commonly referred to as the Freedom of Information Act);
(B) shall not be subject to any agency rules or judicial
doctrine regarding ex parte communications with a decision
making official; (C) shall not, without the written consent of
the person or entity submitting such information, be used
directly by such agency, any other Federal, State, or local
authority, or any third party, in any civil action arising
under Federal or State law if such information is submitted in
good faith; (D) shall not, without the written consent of the
person or entity submitting such information, be used or
disclosed by any officer or employee of the United States for
purposes other than the purposes of this subtitle, except
..." in certain enumerated situations. |
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| Ridge Testifies on
Information Security and FOIA |
7/15. The House Select
Committee on Homeland Security held another hearing on HR 5005,
the Homeland Security Act of 2002. Tom Ridge, head of the
President's Office
of Homeland Security, testified. Ridge addressed
information security and the proposed Freedom of Information
Act exemption in his prepared
testimony.
Ridge stated that "The President's proposal would
transfer to the new Department the National Infrastructure Protection
Center of the FBI, the National
Communications System of the Department of Defense, the Critical Infrastructure Assurance
Office of the Department of Commerce, the Computer Security Division of
the National Institute of
Standards and Technology, the National Infrastructure
Simulation and Analysis Center of the Department of Energy,
and the Federal Computer
Incident Response Center of the General Services
Administration.
Ridge also addressed the proposed Freedom of Information Act
exemption of information regarding critical infrastructures
voluntarily shared with the federal government. This is
contained in Section 204 of the HR 5005 as introduced.
Ridge stated in his prepared testimony that "In order to
build a system capable of protecting the Nation's critical
infrastructure, the federal government must be able to gather
information related to operational capacities and
vulnerabilities and share resulting assessments or analysis
with not only the private sector but also state and local
officials. This problem is not new. Congressman Davis, along
with many of his peers, has been focused on this issue for
some time. Last week the Government Reform and Oversight
Committee approved an amendment that the Congressman submitted
providing a limited exemption for information voluntarily
submitted to the government related to critical
infrastructure. This amendment recognizes the need for an
exemption while ensuring that the federal government's
regulatory and enforcement efforts are in no way undermined.
The Administration supports the intent and purpose of this
amendment."
The House Select Committee on Homeland Security is scheduled
to hold its third hearing on Tuesday, July 16, at 10:00 AM. |
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| Groups Comment on Broadcast
Flag Standard |
7/10. The Center for Democracy
and Technology (CDT), Consumers Union, and Public
Knowledge sent a memorandum
[13 pages in PDF] to the House Commerce
Committee regarding the Broadcast Protection Discussion
Group's (BPDG) Final Report on the protection of digital
television, and the "broadcast flag" standard.
These groups concluded that "we believe that serious
questions remain as to whether the broadcast flag proposal
will be sufficiently effective. Congress should seek assurance
that it will not have adverse consequences on consumers,
including their ability to use their existing products,
their ability to exercise legal and reasonably expected fair
uses of content, and their access to future innovative
technologies that might allow them to manipulate content in
creative ways that are legal under copyright law." |
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| GAO Reports Weaknesses in
Information Systems at FDIC |
7/15. The General Accounting
Office (GAO) released a report [PDF]
titled "FDIC Information Security: Improvements Made but
Weaknesses Remain". This report on the Federal Deposit Insurance
Corporation (FDIC) identifies "weaknesses in its
information systems controls that affect the corporation's
ability to safeguard electronic access to critical financial
and other sensitive information. These weaknesses place
critical FDIC financial and sensitive personnel and bank
examination information at risk of unauthorized disclosure,
critical financial operations at risk of disruption, and
assets at risk of loss."
For example, the GAO report finds that the "FDIC did not
adequately limit access to data and programs by controlling
mainframe access authority, providing sufficient network
security, or establishing a comprehensive program to monitor
access activities." |
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| More News |
7/15. The Securities and
Exchange Commission's (SEC) Division of Corporation
Finance published Staff
Legal Bulletin No. 14A, which announces that the SEC has
changed its position regarding the application of Exchange Act
Rule 14a-8, the shareholder proposal rule, to equity
compensation plans. This will increase the opportunity of
shareholders to approve or reject equity compensation plans.
See, SEC
release.
7/15. President Bush gave a campaign speech
in Birmingham, Alabama at a Bob Riley for Governor event. He
also gave a speech
at the University of Alabama at Birmingham. He addressed trade
promotion authority at both events. He said in the university
speech that "We're good at a lot things in America, and
we ought to be selling our products all around the world. It's
time for Congress to quit talking and start acting, and giving
me trade promotion authority so we can open up more markets
and more people can find work right here in America." |
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| About Tech Law Journal |
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information page.
Contact: 202-364-8882; E-mail.
P.O. Box 4851, Washington DC, 20008.
Privacy
Policy
Notices
& Disclaimers
Copyright 1998 - 2002 David Carney, dba Tech Law Journal. All
rights reserved. |
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| Tuesday, July 16 |
The House will meet at 9:00 AM for morning hour and 10:00 AM
for legislative business.
9:30 - 10:30 AM. Department of
Commerce (DOC) officials will hold a media briefing to
preview the DOC's July 17 Digital Content and Rights
Management roundtable, announce the DOC's September 19
Homeland Security Technology Expo, and announce the launch of
a biotechnology industry survey. The participants will include
Phil Bond (Under Secretary of Commerce for Technology),
Benjamin Wu (Dep. Under Sec.), Bruce Mehlman (Asst. Sec.), and
Chris Israel (Dep. Asst. Sec.). See, notice.
Location: DOC, Room 4813, 14th and Constitution Ave., NW.
9:30 AM. The FCC will hold a
meeting. See, agenda.
Location: FCC, 445 12th Street, SW, Room TW-C05 (Commission
Meeting Room).
LOCATION CHANGE. 10:00 AM.
The Senate Banking
Committee will hold a hearing. Federal Reserve Board
Chairman Alan
Greenspan will deliver his semi annual report on monetary
policy. See also, media
advisory regarding procedures for covering this hearing.
Press contact: Jesse Jacobs at 202 224-1654. Location: Room
216, Hart Building.
10:00 AM. The House Select
Committee on Homeland Security will hold another hearing
on HR
5005, the Homeland Security Act of 2002. See, notice.
Location: Room 345 (Cannon Caucus Room), Cannon Building.
10:00 AM. The Senate
Finance Committee will hold a hearing to examine homeland
security and international trade issues. Location: Room
215, Dirksen Building.
2:00 PM. The Senate
Judiciary Committee's Subcommittee on Administrative
Oversight and the Courts will hold a hearing to examine the FBI's computer
hardware problems. See, notice.
Press contact: Mimi Devlin at 202 224-9437. Location: Room
226, Dirksen Building.
2:30 PM. The Senate
Commerce Committee will hold a hearing on the nomination
of Jonathan Adelstein to be a FCC
Commissioner. Location: Room 253, Russell Building.
3:00 PM. The Senate
Appropriations Committee's Subcommittee on Commerce,
Justice, State, and the Judiciary will meet to mark up the
appropriations bill for the Departments of Commerce, Justice,
and State, the Judiciary, and related agencies. Location: Room
S-128, Capitol Building.
3:00 PM. The Congressional
Internet Caucus Advisory Committee, Transatlantic Policy
Network, and European Internet Foundation will host two
roundtable discussions data privacy (3:00 PM) and information
security (4:00 PM). Location: Room 106, Dirksen Building.
5:00 PM. The The House
Judiciary Committee's Subcommittee on Commercial and
Administrative Law will hold a meeting to mark up HR 2526,
the Internet Tax Fairness Act of 2001. Location: Room
2141, Rayburn Building.
Deadline to submit reply comments to the FCC regarding
its Notice of Proposed Rulemaking regarding the consequences
of the FCC's classification of cable modem service as an
information service. This is CS Docket No. 02-52. See, FCC
release [PDF] and notice
in Federal Register. |
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| Wednesday, July 17 |
The House will meet at 10:00 AM for legislative business.
9:00 AM. The Congressional
Internet Caucus Advisory Committee, Transatlantic Policy
Network, and European Internet Foundation will host roundtable
discussions on intellectual property (9:00 AM) and broadband
(10:00 AM). Location: Reserve Officers Assoc., 1st and
Constitution, NE.
9:30 AM. The Senate
Commerce Committee will hold a hearing on legislation to
authorize funding for the FTC. FTC Commissioners
Timothy Muris, Mozelle Thompson, Sheila Anthony, Orson
Swindle, and Thomas Leary will testify. Location: Room 253,
Russell Building.
10:00 AM. Federal
Reserve Board Chairman Alan
Greenspan will testify before the House Financial
Services Committee. He will deliver his semi annual report
on monetary policy. See, notice.
Location: Room 2128, Rayburn Building.
10:00 AM. The House
Judiciary Committee will meet to mark up several bills,
including S 487,
the Technology, Education, and Copyright Harmonization Act
of 2001 (TEACH Act). Webcast. Press contact: Jeff Lungren
or Terry Shawn at 202 225-2492. Location: Room 2141, Rayburn
Building.
12:00 NOON. The Congressional
Internet Caucus Advisory Committee will host a luncheon.
The scheduled speakers include Richard Clarke (Special Advisor
to the President for Cyberspace Security) and Kathleen
Abernathy (FCC Commissioner). An RSVP is required to
attend. Contact either rsvp
@netcaucus.org or call Danielle at 202 638-4370. Location:
Reserve Officers Assoc., 1st and Constitution, NE.
1:00 - 4:00 PM. The Department of Commerce's Technology Administration
will host a workshop on digital entertainment and its
availability to consumers. Phil Bond (Under Secretary of
Commerce for Technology) and James Rogan (Director of the
USPTO) will co-host the event. For more information, contact
Chris Israel, Deputy Assistant Secretary for Technology
Policy, at 202 482-5687. See, notice
in the Federal Register. Location: Room 4830, Hoover Building,
1401 Constitution Ave., NW.
Extended deadline to submit reply comments to the FCC in response
to its notice of proposed rulemaking regarding its unbundling
analysis under § 251
of the Communications Act and the identification of specific
unbundling requirements for incumbent local exchange carriers.
See, May 29 order
[PDF] extending deadline from June 5 to July 17. See also, notice
in the Federal Register. This is CC Docket No. 01-338. |
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| Thursday, July 18 |
The House will meet at 10:00 AM for legislative business.
9:30 AM. The House
Commerce Committee's Subcommittee on Commerce, Trade, and
Consumer Protection will hold a hearing titled "Are
All Online Travel Sites Good for the Consumer: An Examination
of Supplier Owned Online Travel Sites". See, notice.
Webcast. Press contact: Ken Johnson or Jon Tripp at 202
225-5735. Location: Room 2123, Rayburn Building.
9:30 AM. The Senate Special
Committee on Aging will hold a hearing on identify
theft. Howard Beales, Director of the FTC's
Bureau of Consumer Protection, will testify. Location: Room
628, Dirksen Building.
10:00 AM. The House
Judiciary Committee's Subcommittee on Courts, the
Internet, and Intellectual Property will hold an oversight
hearing titled "The U.S. Patent and Trademark Office:
Fee Schedule Adjustment and Agency Reform". Location:
Room 2141, Rayburn Building.
10:00 AM. The Senate
Judiciary Committee will hold an executive business
meeting. The agenda
includes S 2395,
a bill regarding counterfeiting and copyright piracy. See, amendment
in the nature of a substitute released on July 11. Press
contact: Mimi Devlin at 202 224-9437. Location: Room 226,
Dirksen Building.
10:00 AM. The Senate
Banking Committee will hold a hearing on the nominations
of Paul Atkins and Harvey Goldschmid to be Commissioners of
the SEC. Location:
Room 538, Dirksen Building.
12:00 NOON - 2:00 PM. The National Youth Science Camp and
Entrust will host a luncheon and panel discussion titled the
"Role of Technology in Establishing Homeland Security".
Former NATO Commander Gen. Wesley Clark and Sen. Robert Byrd (D-WV) are
the scheduled keynote speakers. Lunch will be served.
Interested media should RSVP by contacting Caroline Dietz at
202 715-1532 or caroline.dietz
@dittus.com. Location: Room 325 (Senate Caucus Room),
Russell Building.
2:00 PM. The Senate
Judiciary Committee will hold a hearing on pending
nominations. Press contact: Mimi Devlin at 202 224-9437.
Location: Room 226, Dirksen Building.
2:30 PM. The Senate
Commerce Committee will hold a hearing on the nominations
of Kathie Olsen and Richard Russell to be
Associate Directors of the Office
of Science and Technology Policy. Press contact: Andy
Davis at 202 224-6654. Location: Room 253, Russell Building.
Deadline to submit comments to the FCC in response
to its request for comments on the FCC's Office of Plans and Policy's
(OPP) Working
Paper No. 35 [PDF], titled "Horizontal Concentration
in the Cable Television Industry: An Experimental
Analysis". See, Public
Notice [PDF]. |
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| Friday, July 19 |
The House will meet at 9:00 AM for legislative business. No
votes expected after 6:00 PM.
12:30 PM. SEC Chairman Harvey
Pitt will give a luncheon speech. Location: Ballroom, National Press Club, 529 14th
St. NW, 13th Floor.
Deadline to submit applications to the Department of Education for Community
Technology Centers Program grants for FY2002 to create or
expand community technology centers that will provide
disadvantaged residents of economically distressed urban and
rural communities with access to information technology and
related training. See, notice
in the Federal Register.
Deadline to submit comments to the State Department regarding
the effects of the privatization of Inmarsat and INTELSAT on U.S. industry,
jobs, and industry access to the to the global marketplace.
See, notice
in the Federal Register. |
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| Monday, July 22 |
Day one of a two day seminar hosted by the American Intellectual Property
Law Association on the Patent Cooperation Treaty. See, online
brochure [PDF]. Location: Crystal Gateway Marriott,
Arlington, VA.
2:00 - 4:00 PM. The FCC's Advisory
Committee for the 2003 World Radiocommunication Conference
will hold a meeting. See, notice
in Federal Register. Location: FCC, 6th Floor South Conference
Room (6-B516), 445 12th Street, SW.
Deadline to submit comments to the FCC in response
to its Notice of Proposed Rule Making "regarding the
sunset of the statutory requirements under section 272 imposed
on Bell Operating Companies when they provide in-region,
interLATA services and seeks comment on whether, and if so,
under what conditions, the structural and nondiscrimination
safeguards established in section 272 should be extended by
the Commission either generally or with respect to specific
states." See, notice
in the Federal Register. |
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