Tech Law Journal Daily E-Mail Alert
July 23, 2002, 9:00 AM ET, Alert No. 475.
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House to Consider Homeland Security Bill
7/22. The House will likely take up HR 5005, the Homeland Security Act of 2002, later this week. The House Select Committee on Homeland Security amended and approved the bill on Friday, July 19 by a vote of 5-4 after a day long meeting. See, HR 5005 [232 pages in PDF] as reported by the Select Committee.
The House Rules Committee has scheduled a meeting for Wednesday at 4:00 PM to adopt a rule for its consideration. See also, Rules Committee's notice regarding the amendments process for HR 5005.
President Bush gave a speech Monday morning in which he addressed progress on this bill. He said that "We are making progress in Washington. I appreciate so very much the House Select Committee getting a bill out, and it's going to get to the floor. And the Speaker was telling me today that it looks like they may get a vote this week. And the Senate is working hard on it, both Republicans and Democrats are working hard to reconcile any differences that may be had." 
Bush Addresses Technology and Homeland Security
7/22. President Bush gave a speech at the Argonne National Laboratory in Illinois. He said that "Our scientific community is serving on the front lines of this war, by developing new technologies that will make America safer."
He also stated that "We will harness our science and our technology in a way to protect the American people. We will consolidate most federally funded homeland security research and development, to avoid duplication, and to make sure all the efforts are focused."
President Bush also used the occasion to promote HR 5005, his proposed legislation to create a new Department of Homeland Security (DHS).
The Argonne National Laboratory, which is a part of the Energy Department, states in its web site that its "scientists are adapting existing technologies to solve homeland security challenges. Relying on expertise in nuclear power, infrastructure technology and ``lab-on-a-chip´´ sensors, Argonne has developed a neutron detector, an early warning and crisis management computer simulator for mass transportation and sensors for detecting biological and chemical agents."
President Bush stated in his address to the nation on June 6 that the new DHS "will bring together our best scientists to develop technologies that detect biological, chemical, and nuclear weapons, and to discover the drugs and treatments to best protect our citizens."
Argonne is not listed as one of the laboratories to be transferred to the DHS in either in the President's original bill, or in the version approved by the House Select Committee on Homeland Security on Friday, July 19.
7th Circuit Construes ECPA and 11th Amendment
7/22. The U.S. Court of Appeals (7thCir) issued its opinion [PDF] in Ameritech v. McCann, a case holding that the 11th Amendment does not bar an electronics communications provider from suing a state law enforcement agency in federal court for prospective injunctive relief for an ongoing violation of the Electronic Communications Privacy Act (ECPA).
Background. Ameritech (now SBC) is an incumbent local exchange carrier in the state of Wisconsin. Michael McCann has been the District Attorney of Milwaukee County for 33 years. The DA's office requests and receives electronic data from Ameritech pursuant to the ECPA, which is codified at 18 U.S.C. § 2510, et seq.
The ECPA provides, among other things, that electronic communications providers shall provide government entities certain electronic records pertaining to communications. The ECPA also provides that such government entities shall "pay the person or entity assembling or providing such information a fee for reimbursement for such costs as are reasonably necessary and which have been directly incurred in searching for, assembling, reproducing, or otherwise providing such information." McCann requests data from Ameritech under the ECPA, but refuses to pay for it.
District Court. Ameritech filed a complaint in U.S. District Court (EDWisc) against McCann, in his capacity as the DA of Milwaukee County, seeking a declaratory judgment that McCann must comply with the ECPA. McCann did not dispute that he requests and receives, but does not pay for, electronic data. Rather, the deadbeat DA argued that this is a collection action brought in federal court against a state, and is hence barred by the 11th Amendment. The District Court granted McCann's motion to dismiss, holding that suit is barred by the 11th Amendment.
11th Amendment. "The judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State."
Appeals Court. The Appeals Court reversed. The Court reasoned that while the state will be financial affected by the requested declaratory judgment, this is not an action for payment of a debt incurred in the past, which would be barred by the 11th Amendment. Rather, it is a suit which seeks prospective injunctive relief, which is not barred by the 11th Amendment.
The Court relied on the seminal case of Ex Parte Young, 209 U.S. 123 (1908). The Court also relied upon the Supreme Court's decision in May in Verizon Maryland v. Public Service Comm. of Maryland [PDF], in which the Court wrote that "In determining whether the doctrine of Ex Parte Young avoids an Eleventh Amendment bar to suit, a court need only conduct a straightforward inquiry into whether [the] complaint alleges an ongoing violation of federal law and seeks relief properly characterized as prospective."
EPIC Files Amicus Brief Re Tort Liability for Privacy Violations
7/19. The Electronic Privacy Information Center (EPIC), a Washington DC based group, filed an amicus curiae brief with the Supreme Court of New Hampshire in Estate of Remsburg v. Docusearch, arguing that private investigators and information brokers should be liable in tort for privacy invasions of third parties about whom they are collecting and disseminating information.
The case arises out of the stalking and murder of Amy Boyer by Liam Youens, who located her with information sold by Docusearch. Amy Boyer's parents were Tim and Helen Remsburg.
The EPIC requests that the court hold that "private investigators and information brokers have a legal duty to act with due care toward the subjects of their investigations". It also requests that the Court hold that "a private investigator or information broker may be found liable for intrusion upon seclusion for obtaining and selling a third party's Social Security Number without the consent or knowledge of the third party".
The EPIC also requests that Court the hold that "commercial appropriation is a valid cause of action in New Hampshire, and a private investigator or information broker may be held liable under this cause of action for selling the personal information of a private individual without her knowledge or consent". Finally, the EPIC requests that the Court hold that "a private investigator or information broker may be held liable" either in tort or under New Hampshire statute for engaging in pretexting to obtain personal information.
Chairman Powell Responds to Rep. Oxley
7/17. Federal Communications Commission (FCC) Chairman Michael Powell wrote a letter [17 pages in PDF] to Rep. Mike Oxley (R-OH), the Chairman of the House Financial Services Committee, in which he responded to Rep. Oxley's letter [PDF] of July 11 regarding the FCC's practices and procedures pertaining to WorldCom and corporate oversight.
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Powell Writes WorldCom Re Bankruptcy and Continuity of Service
7/22. Federal Communications Commission (FCC) Chairman Michael Powell wrote a letter [PDF] to WorldCom P/CEO John Sidgmore regarding bankruptcy and continuity of service. He wrote that "Because of WorldCom's size and scope, it is particularly important, both to millions of consumers and to the integrity of the nation's communications network, that WorldCom integrate its regulatory requirements into its planning during the bankruptcy process, and that it take these requirements seriously."
Powell made two main points. First, he asserted that "If WorldCom's bankruptcy proceeding results in a restructuring or acquisition of WorldCom or its assets, such a restructuring or acquisition could only take place after the Commission granted required approvals to transfers of control over licenses or authorizations granted by the Commission."
Second, Powell stated that "If WorldCom's bankruptcy proceeding leads to a discontinuance of services, then, to the extent WorldCom provides services reached under section 214(a) of the Act, such a discontinuance could only take place if WorldCom first meets the notice requirements of the Commission's rules." However, Powell's letter is silent as to which services he asserts are "reached under section 214(a)".
Section 214, which applies only to common carrier regulation, provides, in part, that "No carrier shall discontinue, reduce, or impair service to a community, or part of a community, unless and until there shall first have been obtained from the Commission a certificate that neither the present nor future public convenience and necessity will be adversely affected thereby; except that the Commission may, upon appropriate request being made, authorize temporary or emergency discontinuance, reduction, or impairment of service, or partial discontinuance, reduction, or impairment of service, without regard to the provisions of this section. As used in this section the term ``line´´ means any channel of communication established by the use of appropriate equipment, other than a channel of communication established by the interconnection of two or more existing channels ..."
Sidgmore Addresses WorldCom's Bankruptcy Filing
7/22. John Sidgmore, P/CEO of WorldCom, held a press conference in New York City in which he discussed WorldCom's Chapter 11 bankruptcy filing, WorldCom's accounting problems, debtor in possession financing, new board members, and other issues.
He stated that a Chapter 11 proceeding is the "only way to provide for the company's future". He added that he hopes that WorldCom will "emerge on the other side of the process as a stronger and much healthier enterprise."
He was asked about an exodus of suppliers and customers. He responded that "I think the worst possible period ... was the last three months. ... Now, you know, in a strange way, under Chapter 11, we will be stabilized." He added that "we still have not lost any substantial customers".
He also addressed his hope that WorldCom will emerge from bankruptcy intact. He stated that "I think, if our plan is successful, I think our plan is essential going to be, essentially to keep the company intact. That doesn't mean that we won't have some assets that are restructured."
Sidgmore continued that "It doesn't mean that we won't get out of some businesses. We have already announced that we are going to get out of the wireless resale business. We announced that we have got some other assets for sale. But, these are all pieces that are on the fringe of the core of WorldCom."
He stated that "I suspect that our plan will include keeping the core, the center pieces, of WorldCom intact. And, that would include the UUNet business, the Internet business, the long distance business in the United States, both for consumers, and for corporations, the data business around the world, the provision of service to global accounts, the major attention we pay to the European account. All of those things are clearly going to be a piece of our future. And so, I guess what I am saying is, the reorganization here is not going to be a reorganization ... where you jump in and you sell off all of the assets. It is not going to be a liquidation, in my opinion. And the courts and the creditors may decide differently.
He also stated that "The value in WorldCom is not in the switches and the pipes that we have underground and the hard assets. The value in WorldCom is the twenty million customers, the brands, you know, like WorldCom, MCI, UUNet, et cetera. The customer relationships ... that is what creates the value here. Breaking it apart, I think, is not going to help."
In response to a question about the status of UUNet, he said this: "But, I think the more important thing, which has been discussed several times, is, you know, what is the separability of those organizations. And, frankly, the UUNet organization is pretty well integrated, particularly on the sales and marketing side, and customer service as well, for that matter, into the rest of WorldCom. So these are not separate business units in the traditional sense anymore."
Sidgmore has been CEO of WorldCom since April. Before that, he was Vice Chairman. He also served as an advisor on Internet and technology matters. He came to WorldCom in 1996, when it purchased UUNet.
WorldCom filed a Chapter 11 petition [PDF] in the U.S. Bankruptcy Court (SDNY) on Sunday, July 21. WorldCom is represented in the proceeding by the law firm of Weil Gotshal.
USTA Seeks Protections for LECs
7/22. Walter McCormick, P/CEO of the U.S. Telecom Association (USTA), wrote a letter [PDF] to Federal Communications Commission (FCC) Chairman Michael Powell, and the other FCC Commissioners, regarding the WorldCom bankruptcy proceeding.
The USTA is a group that represents incumbent local exchange carriers (ILECs). McCormick wants the FCC to take steps to minimize service disruptions and financial loss to the ILECs resulting from WorldCom's bankruptcy proceeding. He also wants the FCC to continue to move ahead with various of its deregulatory proceedings, notwithstanding WorldCom's bankruptcy.
McCormick argued that "it is imperative for the FCC to resist suggestions ... that it set aside proceedings that are equally important to the continued health and stability of the telecommunications industry, including the UNE Triennial Review, its Broadband dockets, and pending and future section 271 applications. The FCC must bring such proceedings to a close as quickly as possible."
He also stated that "any actions by the FCC should be designed to serve two equally important goals. First, any customer disruptions as a result of this or other bankruptcy filings should be kept to a minimum. Second, and equally important, the FCC should take affirmative steps to ensure that WorldCom’s impending bankruptcy does not undermine the financial stability of other carriers that provide services to it, and that such supplying carriers have adequate assurances that they will be paid for those services."
He elaborated that the "ILECs intend to fulfill their obligations to continue providing services under the bankruptcy laws. They should not, however, collectively be forced to absorb hundreds of millions of dollars of costs each month for interstate access, intrastate access, and the provision of UNEs, in order for WorldCom to continue to provide service, without adequate assurance of payment." McCormick also said that "the FCC will need to find a mechanism to address the impact of WorldCom's potential unpaid contribution to Universal Service."
McCormick asked the FCC to do several things. He wrote that the FCC should advocate "payment to carriers that provide service to a carrier debtor in bankruptcy." He wrote that the FCC should allow WorldCom's suppliers to pass on to their customers a portion of the costs of unpaid WorldCom debts. He wrote that "the FCC should provide a clear mechanism for the recovery of non-collectible charges as a result of the bankruptcy. For example, the FCC could allow recovery through the exogenous cost mechanism in its price cap rules or through a limited waiver of those rules."
McCormick also wrote that "the FCC should make clear that its pricing rules require that carriers providing unbundled elements be allowed to include a compensatory factor to recover non-collectible UNE charges."
Finally, he wrote that "the FCC should make clear that that the Communications Act of 1934, as amended (Act), does not preempt the Bankruptcy Code, and that carrier suppliers have the same rights as all other service providers to a ``cure´´ of outstanding indebtedness on existing service arrangements that are assumed (and assigned) during the course of the bankruptcy." (Parentheses in original.)
Tuesday, July 23
The House will meet at 9:00 AM for morning hour and at 10:00 AM for legislative business.
10:00 AM. The Senate Banking Committee will hold a hearing on the nominations of Cynthia Glassman and Roel Campos to be members of the SEC. Press contact: Jesse Jacobs at 202 224-4524. Location: Room 538, Dirksen Building.
TIME CHANGE AND ROOM CHANGE. 10:00 AM. The Senate Judiciary Committee will hold a hearing on pending judicial nominations, including Priscilla Owen (U.S. Court of Appeals for the Fifth Circuit), Timothy Corrigan (U.S. District Court for the Middle District of Florida), and Jose Martinez (U.S. District Court for the Southern District of Florida). See, notice. Press contact: Mimi Devlin at 202 224-9437. Location: Room 325, Russell Building.
10:00 - 10:45 AM. Secretary of Commerce Don Evans, and officials from the Defense Department and FCC will hold a press conference to announce the Department of Commerce's (DOC) "plan for allocating additional spectrum for third generation (or 3G) mobile telecommunications services". See, DOC notice. Press contact: Clyde Ensslin or Ranjit de Silva at 202 482-7002. Location: Room 4830, DOC, 14th & Constitution Avenue NW.
10:45 AM. The Senate Commerce Committee will hold an executive session. The agenda includes voting on the nominations of Jonathan Adelstein to be a Commissioner of the FCC, and 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 S-216, Capitol Building.
11:00 AM. The Cato Institute will host a panel discussion titled "Who Rules the Root? ICANN, Domain Names, and the Battle over Internet Governance". The scheduled speakers are Milton Mueller (author of Ruling the Root: Internet Governance and the Taming of Cyberspace), Ira Magaziner (SJS Advisors), Michael Roberts (The Darwin Group), and Harold Feld (Media Access Project). Lunch will follow. See, Cato notice. Location: 1000 Massachusetts Avenue, NW.
1:30 PM. Boyden Gray, who participated in the selection of judges for former President Bush, will hold a press conference on judicial nominations. For more information, contact Phil Smith at 202 661-6350. Location: Murrow Room, National Press Club, 529 14th St. NW, 13th Floor.
RESCHEDULED FOR 10:00 AM. 2:00 PM. The Senate Judiciary Committee will hold a hearing on pending nominations.
3:00 PM. The House Judiciary Committee's Subcommittee on Court, Intellectual Property and the Internet will hold a hearing on HR 1203, the Ninth Circuit Court of Appeals Reorganization Act of 2001. This bill would create a new 12th Circuit, thereby relieving Alaska, Hawaii, Idaho, Montana, Oregon, and Washington from being included in the 9th Circuit. Location: Room 2141, Rayburn Building.
Deadline to file reply comments with the FCC's Spectrum Policy Task Force in response to its request for comments on spectrum policy, including taking steps toward market oriented allocation and assignment policies, interference, efficient use of spectrum, public safety communications, and international issues. See, Public Notice [PDF].
Day two of a two day seminar hosted by the American Intellectual Property Law Association (AIPLA) on the Patent Cooperation Treaty. See, online brochure [PDF]. Location: Crystal Gateway Marriott, Arlington, VA.
Wednesday, July 24
The House will meet at 10:00 AM for legislative business.
9:00 AM. Day one of a two day meeting of the Bureau of Industry and Security's (BIS) Information Systems Technical Advisory Committee. The meeting will be partially open, and partially closed to the public. The agenda of the open portion of the meeting includes (1) a presentation on encryption in network management software, (2) a presentation on changes to the mass market encryption regulation, and (3) a discussion of the GAO report on advances in China's semiconductor industry. The BIS was formerly known as the Bureau of Export Administration (BXA). See, notice in the Federal Register. Location: Hoover Building, Room 3884, 14th Street between Pennsylvania Ave. and Constitution Ave. NW.
9:30 AM. The Senate Governmental Affairs Committee will hold a business meeting to consider withdrawals of amendments to S 2452 [273 pages in PDF], the National Homeland Security and Combatting Terrorism Act of 2002. Location: Room 342, Dirksen Building.
CANCELLED. 10:00 AM. The Senate Commerce Committee's Subcommittee on Communications will hold a hearing titled "Competition and the Cable Industry". Sen. Daniel Inouye (D-HI) will preside. The scheduled witnesses include Robert Sachs (National Cable & Telecommunications Association), Rodger Johnson (Knology), David Baker (Earthlink), Gene Kimmelman (Consumers Union), and James Gleason (American Cable Association).
10:00 AM. The House Government Reform Committee's Subcommittee Government Efficiency, Financial Management, and Intergovernmental Relations will hold a hearing titled "Cyber Tterrorism: Is the Nation's Critical Infrastructure Adequately Protected?" Location: Room 2154, Rayburn Building.
12:00 NOON. The Congressional Internet Caucus Advisory Committee will host a panel discussion on the future of Internet technologies. The speakers will be Nicholas Negroponte, Walter Bender and Andrew Lippman, all of the MIT Media Laboratory. Sen. Conrad Burns (R-MT) and Rep. Michael Capuano (D-MA) will make introductions. RSVP to rsvp@netcaucus.org or Danielle at 202 638-4370. Lunch will be served. Location: Reserve Officers Association, First and Constitution Ave., NE.
2:30 PM. The Senate Commerce Committee's Subcommittee on Science, Technology, and Space will hold a hearing to examine women in science and technology. Location: Room 253, Russell Building.
3:00 PM. Rep. Billy Tauzin (R-LA), the Chairman of the House Commerce Committee, Rep. Fred Upton (R-MI), the Chairman of the Subcommittee on Telecommunications and the Internet, and others, will hold a press conference on a cyber security report prepared by the Business Software Alliance (BSA). Press contact: Ken Johnson or Peter Sheffield at 202 225-5735. Location: Room 2218, Rayburn Building.
4:00 PM. The House Rules Committee will meet to adopt a rule for consideration of HR 5005, the Homeland Security Act of 2002. See also, HR 5005 [232 pages in PDF] as reported by the House Select Committee on Homeland Security. amendments process for HR 5005. Location: Room H-312, Capitol Building.
Thursday, July 25
The House will meet at 10:00 AM for legislative business. The House may begin consideration of HR 5005, the Homeland Security Act of 2002.
9:00 AM. Day two of a two day meeting of the Bureau of Industry and Security's (BIS) Information Systems Technical Advisory Committee. The meeting will be partially open, and partially closed to the public. The agenda of the open portion of the meeting includes (1) a presentation on encryption in network management software, (2) a presentation on changes to the mass market encryption regulation, and (3) a discussion of the GAO report on advances in China's semiconductor industry. The BIS was formerly known as the Bureau of Export Administration (BXA). See, notice in the Federal Register. Location: Hoover Building, Room 3884, 14th Street between Pennsylvania Ave. and Constitution Ave. NW.
10:00 AM. The Senate Judiciary Committee will hold an oversight hearing on the Department of Justice. See, notice. Press contact: Mimi Devlin at 202 224-9437. Location: Room 226, Dirksen Building.
Friday, July 26
The House will meet at 10:00 AM for legislative business. The House may consider HR 5005, the Homeland Security Act of 2002.
Deadline to submit reply comments to the FCC regarding its Declaratory Ruling and Second Further Notice of Proposed Rulemaking clarifying that providers of Internet protocol telecommunications relay services are eligible for reimbursement from the Interstate TRS Fund. See, FCC notice [PDF].
Monday, July 29
The House is scheduled to begin its Summer District Work Period.
9:00 AM - 5:00 PM. Day one of a two day meeting of the Federal Accounting Standards Advisory Board (FASAB). RSVP by July 22 by calling 202 512-7350. See, notice in Federal Register. Location: Room 5N30, GAO Building.
1:30 - 3:30 PM. The FCC's WRC-03 Advisory Committee, Informal Working Group 7: Regulatory Issues and Future Agendas, will hold a meeting. See, notice [PDF]. Location: The Boeing Company, 1200 Wilson Blvd., Arlington, VA.
Deadline to submit comments to the FCC's regarding its Annual Assessment of the Status of Competition in the Market for the Delivery of Video Programming. See, notice in Federal Register.