3/11. Rep. Billy Tauzin (R-LA), Chairman of the House Commerce Committee, wrote a letter to Federal Communications Commission (FCC) Chairman Michael Powell regarding the FCC's cable modem service NPRM, and in particular, its impact on local government revenues derived from franchise fees.

The FCC adopted this Declaratory Ruling and Notice of Proposed Rulemaking [75 pages in PDF] at its March 14, 2002 meeting. See also, March 14 FCC release. This is Docket No. 00-185 and Docket No. 02-52.

This NPRM addresses the legal classification and the appropriate regulatory framework for broadband access to the Internet over cable system facilities. It states that "we conclude that cable modem service, as it is currently offered, is properly classified as an interstate information service, not as a cable service, and that there is no separate offering of telecommunications service. In addition, we initiate a rulemaking proceeding to determine the scope of the Commission's jurisdiction to regulate cable modem service and whether (and, if so, how) cable modem service should be regulated under the law ..." (Parentheses in original.)

Rep. Tauzin (at right) wrote that "The Federal Communications Commission (``Commission´´) has before it a Notice of Proposed Rulemaking concerning the regulatory implications of its determination last spring that cable modem service should be classified as interstate information service, outside the reach of Title VI of the Communications Act. Included in this decision was the determination that revenue from cable modem service should not be used in computing the franchise fees paid to local governments. Parishes in Louisiana have contacted me about their primary concern with this decision, namely its impact on local government revenues derived from franchise fees."

Rep. Tauzin continued that "After the Commission's correct ruling on these two issues, certain cable companies have informed parishes that they are no longer going to pay that portion of revenue derived from delivery of cable modem service. Should the Commission determine it appropriate to exercise its jurisdiction under section 622 to resolve the issue of previously collected franchise fees based on cable modem service revenues, I urge the Commission to further clarify that its decision is prospective and effects only contracts signed after the issuance of its ruling. Otherwise, local governments will be exposed to future claims and significant risk."

3/12. Rep. Bill Thomas (R-CA), Chairman of the House Ways and Means Committee, wrote a Dear Colleague letter to members of the House regarding the FSC/ETI dispute with the EU. The World Trade Organization (WTO) has ruled the Foreign Sales Corporation (FSC) tax regime, its replacement, the Extraterritorial Income (ETI) tax regime, constitute illegal export subsidies. This ruling permits the EU to impose retaliatory tariffs. On February 26, 2003, the EU released a revised list of items that may be subject to retaliatory tariffs. See, EU release.

Rep. Thomas (at right) wrote that the FSC/ETI dispute "is jeopardizing sales of a wide-range of U.S. industrial and farm exports to Europe. Members need to be aware of the latest development which could affect the livelihood of Americans in every district."

He continued that "Last week the European Commission, consistent with WTO dispute settlement procedures, released a new $4 billion retaliation list for U.S. non-compliance in the FSC/ETI case that includes 1,866 U.S. products such as jewelry, soy, refrigerators, and aluminum products. The Commission had issued a preliminary list in September of 2,781 products covering $13 billion in goods. The new list issued last week is significant because it marks a refined, focused set of products that are the targets for retaliation at any time. This new list is real."

Rep. Thomas also stated that "EU Trade Commissioner Pascal Lamy, earlier this week in a meeting with the Ways and Means Committee, remarked that although he understands this is politically sensitive, the United States must act soon to come into compliance with WTO obligations on FSC. Although he did not give a specific time frame for retaliation, he did express his willingness to hold off as long as the United States continues to make progress in complying with the WTO decision."

The letter does not address proposed legislative solutions.

3/10. Sen. Richard Lugar (R-IN), the Chairman of the Senate Foreign Relations Committee, introduced S 580, a bill to extend normal trade relations treatment to the products of Russia. The bill was referred to the Senate Finance Committee.

Sen. Lugar addressed his bill in the Senate. He stated that "I rise today to offer legislation to repeal the Jackson-Vanik amendment to Title IV of the 1974 Trade Act as it relates to Russia and to authorize the President to grant permanent normal trade relations to Russia. Congress passed the 1974 Jackson-Vanik amendment to deny permanent normal trade relations to communist countries that restricted emigration rights. Over the years, it has been an effective tool to promote free emigration, but its continuing applicability to Russia no longer makes sense in the context of the many changes that have occurred since the fall of the Soviet Union." See, Cong. Record, March 10, 2003, at S3412.

He continued that "For more than 8 years, Russia has satisfied the requirements of the Jackson-Vanik legislation. It has supported free emigration and it has signed a bilateral trade agreement with the United States allowing the application of normal trade relations status. Last year, the United States declared that Russia would no longer be considered a nonmarket economy for the purposes of trade remedies laws. Russia has made tremendous strides in the last decade. While Russia currently receives normal trade relations treatment with respect to its exports to the U.S., repealing Jackson-Vanik will remove the requirement of semi-annual reports that have been an irritant in U.S.-Russia relations. Granting permanent normal trade relations also will provide certainty that will improve the investment climate and promote enhanced economic relations between the U.S. and Russia."

3/6. Sen. Mark Dayton (D-MN) introduced S 563, titled the "Computer Owners' Bill of Rights". This bill would require the Federal Trade Commission (FTC) to write standards and guidelines regarding computer, peripheral, and software technical support. It would also establish a do not spam registry.

The bill would do four things. First, it calls for a government study of technical support for computers and computer related products. Second, it requires the FTC to "establish standards" setting technical support requirements. Third, it requires the FTC to "issue guidelines to encourage" covered entities to submit information on technical support to the FTC. Finally, it would create a do not spam registry at the FTC.

The bill covers computer makers, peripheral makers, resellers, software companies, and others.

It provides that the "Comptroller General of the United States shall carry out a study of the technical support (also known as customer service) provided computer owners by the computer industry." (Parentheses in original.)

It also provides that "Not later than 90 days after the date of the enactment of this Act, the Federal Trade Commission shall establish standards for the provision of technical support (also known as customer service) for computers and computer-related products". (Parentheses in original.)

The bill also provides that "Not later than 90 days after the date of the enactment of this Act, the Federal Trade Commission shall issue guidelines to encourage each entity covered by the standards for the provision of technical support for computers and computer-related products ... to collect and submit ... information on technical support".

Finally, the spam section provides that the FTC "shall establish a registry in which any person or entity that does not seek to receive unsolicited marketing e-mail (commonly referred to as `spam´) to a computer may register the e-mail address or addresses of such computer for that purpose."  (Parentheses in original.) It then bans sending "unsolicited marketing e-mail", a term left undefined by the bill, to e-mail addresses in the registry. It would also impose a "civil penalty not to exceed $10,000 for each violation".

Sen. Dayton stated in a release that "My experience with the computer industry is that it's akin to the car industry before Ralph Nader. It's buyer beware ... It sells you products and then doesn't help you with problems. I've heard from people who have had problems with their computers, called a help line and then got stuck for an hour or two before getting any help."

He added that "My intention is to start a dialogue on this issue and see what people have to say about their experiences with the computer industry. I have a feeling that a lot of people feel the way I do".

The bill was referred to the Senate Commerce Committee.

3/12. The Senate approved the nomination of William Quarles to be a Judge of the U.S. District Court for the District of Maryland by a vote of 90-0. See, Roll Call No. 50.

3/11. Rep. Robert Andrews (D-NJ) introduced H. Con. Res. 88, a concurrent resolution expressing the sense of Congress that the Children's Internet Protection Act (CIPA) is constitutional as it applies to public libraries.

3/12. The U.S. Court of Appeals (9thCir) issued an order [4 pages in PDF] in ACS v. GCI. In this action, Alaska Communications System (ACS) seeks declaratory and injunctive relief against the enforcement of interconnection contracts arbitrated and approved by the Regulatory Commission of Alaska (RCA) at the request of GCI Communication Corporation (GCI) pursuant to 47 U.S.C. § 251. The present order addresses whether the individuals who are members of the RCA may be substituted for the RCA. The Court of Appeals held that "the federal courts have jurisdiction under 28 U.S.C. § 1331 to entertain such a suit against the commissioners. ... The district court is directed to reinstate the individual commissioners as parties and proceed to a determination of the merits." However, the Appeals Court added that "We do not need to decide the Eleventh Amendment immunity issue as against RCA ..."

3/12. President Bush announced his intent to nominate Hewitt Pate (at right) to be Assistant Attorney General for the Antitrust Division. He is currently the Acting Assistant Attorney General. He replaces Charles James, who left the Department of Justice to become Vice President and General Counsel of Chevron Texaco Corporation. In July of 2001, Pate was appointed Deputy Assistant Attorney General in charge of regulatory matters. Before that, he was a partner in the litigation, intellectual property and antitrust section of the law firm of Hunton & Williams. See, White House release.

8:30 AM - 2:00 PM. The National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board (ISPAB), which was previously named the Computer System Security and Privacy Advisory Board (CSSPAB), will meet. This is the third day of a three day meeting. See, agenda in notice in the Federal Register, February 28, 2003, Vol. 68, No. 40, at Pages 9638 - 9639. Location: NIST, Bethesda Hyatt Regency Hotel, 7400 Wisconsin Avenue, Bethesda, MD.

9:00 AM. The House Judiciary Committee's Subcommittee on Courts, the Internet and Intellectual Property will hold a hearing titled "International Copyright Piracy: Links to Organized Crime and Terrorism". Webcast. Location: Room 2141, Rayburn Building.

9:30 AM. The Senate Judiciary Committee will hold a hearing titled "Setting the Record Straight: The Nomination of Justice Priscilla Owen". See, notice. Location: Room 226, Dirksen Building.

9:30 AM. The Senate Commerce Committee will meet in executive session to vote on pending nominations and legislation. The agenda includes consideration of S 196, the Digital and Wireless Network Technology Program Act of 2003. The agenda also includes consideration of the nomination of Charles McQueary to be Under Secretary for Science and Technology at the new Department of Homeland Security. Location: Room 253, Russell Building.

9:30 AM. The Federal Communications Commission (FCC) will hold a meeting. See, agenda. Location: FCC, 445 12th Street, SW, Room TW-C05 (Commission Meeting Room).

10:00 AM. The House Financial Services Committee will meet to mark up several bills, including HR 21, the Unlawful Internet Gambling Funding Prohibition Act of 2003. See, release. Press contact: Peggy Peterson at 202 226-0471. Location: Room 2128, Rayburn Building.

12:15 PM. The Federal Communications Bar Association's (FCBA) Common Carrier Practice Committee will host a brown bag lunch. The speakers will be Policy Division Chief & Deputies. No RSVP is required. Location: Willkie Farr & Gallagher, 1875 K St., NW.

2:00 PM. The House Government Reform Committee's Subcommittee on Technology, Information Policy, Intergovernmental Relations and the Census will hold a hearing titled "Federal E-Government Initiatives: Are We Headed in the Right Direction?" The scheduled witnesses are Mark Forman (Office of Management and Budget), Joel Willemssen (General Accounting Office), David McClure (The Council for Excellence in Government), and Leonard Pomata (webMethods). Press contact: Bob Dix at 202 225-6751. Location: Room 2154, Rayburn Building.

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in Rainbow Push Coalition v. FCC, No. 02-1020. Judges Ginsburg, Edwards and Garland will preside. Location: 333 Constitution Ave., NW.

10:00 AM - 1:00 PM. The Federal Communications Commission's (FCC) Homeland Security: Network Reliability Council VI will meet. FCC Chairman Michael Powell and Qwest Ch/CEO Richard Notebaert will chair the meeting. See, notice [PDF]. Webcast. Location: FCC, Room TW-C305 (Commission Meeting Room), 445 12th Street, SW.

12:00 NOON - 2:00 PM. The Progress and Freedom Foundation (PFF) will host a panel discussion titled "The Content, Tech & Telecom Industries Examine Intellectual Property". The panelists will include Jeffrey Campbell (Cisco Systems), Sarah Deutsch (Verizon), and Mitch Glazer (Recording Industry Association of America). See, notice. Register to attend by contacting Stefannie Bernstein at 202 289-8928 or sbernstein@pff.org or David Fish at dfish@pff.org. Location: Room 1539, Longworth Building.

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in Trans Intelligence v. FCC, No. 02-1098. Judges Ginsburg, Edwards and Garland will preside. Location: 333 Constitution Ave., NW.

Day one of a three day conference titled "Open Source for National and Local eGovernment Programs in the U.S. and EU". See, agenda. For more information, contact Tony Stanco at 202 994-5513 or Stanco@seas.gwu.edu. Location: George Washington University, The Marvin Center Grand Ballroom, 800 21st Street, NW.

Deadline to submit comments to the Federal Communications Commission (FCC) regarding its notice of proposed rulemaking (NPRM) pertaining to the service rules for the Dedicated Short Range Communications Systems in the 5.850-5.925 GHz band (5.9 GHz band). See, notice in the Federal Register, January 15, 2003, Vol. 68, No. 10, at Pages 1999-2002. For more information, contact Nancy Zaczek at 202 418-7590 or nzaczek@fcc.gov, or Gerardo Mejia at 202 418-2895 or gmejia@fcc.gov.

Day two of a three day conference titled "Open Source for National and Local eGovernment Programs in the U.S. and EU". See, agenda. For more information, contact Tony Stanco at 202 994-5513 or Stanco@seas.gwu.edu. Location: George Washington University, The Marvin Center Grand Ballroom, 800 21st Street, NW.

8:25 AM - 5:00 PM. Day one of a two day meeting of the National Institute of Standards and Technology's (NIST) Visiting Committee on Advanced Technology. Pre-registration is required. See, notice in the Federal Register, March 4, 2003, Vol. 68, No. 42, at Pages 10205-10206. Location: Employees Lounge, Administration Building, NIST, Gaithersburg, MD.

9:00 AM - 12:45 PM. The Progressive Policy Institute (PPI) will host a half day conference titled "Beyond the IT Bubble". It will examine "the next phase in the information technology revolution and government's role in facilitating its positive impact on economic growth". Sen. Ron Wyden (D-OR) will deliver the keynote luncheon address at 12:15 PM. For more information, contact Karin Kullman or Eric Wortman at 202 547-0001. RSVP to TechProject@dlcppi.org or contact Brian Newkirk at 202 608-1245. Location: Hyatt Regency Capitol Hill, 400 New Jersey Avenue, NW.

10:00 AM. The Senate Finance Committee will hold a hearing on the nomination of Mark Everson to be Commissioner of the Internal Revenue Service (IRS). Location: Room 215, Dirksen Building.

10:00 AM. The Senate Banking Committee will hold a hearing on proposals to regulate illegal internet gambling. Location: Room 538, Dirksen Building.

12:15 PM. The Federal Communications Bar Association's (FCBA) Mass Media Practice Committee will host a brown bag lunch. The speaker will be Barbara Kreisman, Chief of the FCC Media Bureau's Video Division. For more information, contact Frank Jazzo at jazzo@fhhlaw.com. RSVP to Wendy Parish at wendy@fcba.org. Location: NAB, 1771 N St., NW, 1st Floor Conference Room.

2:00 - 3:00 PM. The National Telecommunications Cooperative Association (NTCA) and the Rural Utilities Service's (RUS) will host a webcast event at which they will provide an "overview of the Rural Broadband Access Loan and Guarantee Program". To participate, contact Aaryn Slafky (NTCA) at 703 351-2087 or aslafky@ntca.org by March 17.

Day three of a three day conference titled "Open Source for National and Local eGovernment Programs in the U.S. and EU". See, agenda. For more information, contact Tony Stanco at 202 994-5513 or Stanco@seas.gwu.edu. Location: George Washington University, The Marvin Center Grand Ballroom, 800 21st Street, NW.

9:00 AM - 12:00 NOON. Day two of a two day meeting of the National Institute of Standards and Technology's (NIST) Visiting Committee on Advanced Technology. Pre-registration is required. See, notice in the Federal Register, March 4, 2003, Vol. 68, No. 42, at Pages 10205-10206. Location: Employees Lounge, Administration Building, NIST, Gaithersburg, MD.

9:00 AM - 5:00 PM. The Federal Communications Commission (FCC) North American Numbering Council will meet. Location: FCC, Room TW-C305 (Commission Meeting Room), 445 12th Street, SW.