5/15. The Senate passed S 1054, Jobs and Growth Tax Relief Reconciliation Act of 2003. More specifically, the Senate incorporated S 1054 into HR 2, the House version of the bill, as an amendment, and then passed HR 2. The vote on final passage was 51-49.

The House passed its version of HR 2 on May 9 by a vote of 222-203. See, Roll Call No. 182.

While the main features of the Senate bill are not related to information technology, some provisions of the bill as passed are technology related. For example, the Senate added an amendment that provides for the expensing of certain broadband expenditures. The bill also includes a one year extension of the enhanced deduction for corporate contributions of computer equipment for educational purposes. The bill would also revise the property subject to Section 179 expensing to include certain software.

Broadband Expensing. On May 15 the Senate approved by unanimous consent, Amendment 593. Sen. Conrad Burns (R-MT), Sen. Jay Rockefeller (D-WV) and others offered this amendment on May 14. This amendment would amend the Internal Revenue Code to allow the expensing of certain broadband internet access expenditures.

This amendment is very similar to the stand alone bill, S 160, introduced on January 14, 2003, by Sen. Burns and others. S 160, in turn, built upon legislation offered in the 107th Congress by Sen. Rockefeller and others -- S 88 (107th) and HR 267 (107th). See, story titled "Sen. Burns and Sen. Baucus Introduce Broadband Expensing Bill" in TLJ Daily E-Mail Alert No. 587, January 21, 2003.

The text of the Amendment 593 is published in the Congressional Record, May 14, 2003, at pages S6324-6.

Sen. Burns (at right) stated in the Senate that this amendment "provides some incentives to accelerate the deployment of broadband high-speed Internet access across the country. ... What this amendment does is affords tax incentives for the buildout of broadband. Although many urban and suburban areas now have access to broadband connections, many rural areas across the country and, of course, in Montana do not."

He explained that "Our amendment would create a temporary tax incentive for providers in the form of expensing, allowing an immediate deduction of a capital expenditure in the first year of service rather than depreciating that investment over time. In the case of the current generation broadband investments in rural and underserved areas, the bill would allow a 50 percent expensing on the investment, with the rest to be depreciated according to the normal depreciation schedules. And where the providers build out next generation broadband networks, which are typically more expensive, the bill would provide for 100 percent expensing in that year." See, Congressional Record, May 14, 2003, at pages S6198-9.

Sen. Rockefeller stated that "What the Burns Rockefeller broadband amendment does is it says to broadband providers, if you will extend your networks to hard-to-reach, underserved and/or rural areas, you will get a break on your taxes. As the distinguished Senator from Montana indicated, it also encourages a leapfrog to the next generation. It has two different categories of tax breaks depending upon what generation of broadband you are dealing with. In any event, it is going to be faster than the DSL and cable modem services most typical today." See, Congressional Record, May 14, 2003, at page S6199.

Sen. Ted Kennedy (D-MA) also spoke in support of the amendment. He said that "One of our greatest challenges is to close this growing economic gap in access to computers and the Internet. If we do not act to close it now, the ``digital divide´´ will soon become an unacceptable opportunity gap. The broadband tax incentive is an important step in developing a national broadband policy." See, Congressional Record, May 14, 2003, at pages S6198-9.

Deductions for Contributions of Computer Equipment. The Senate also agreed to Amendment 644, as modified, by unanimous consent. The amendment would extend through through December 31, 2004, several provisions that are scheduled to expire on December 31, 2003. One of these provisions provides an enhanced deduction for corporate contributions of computer equipment for educational purposes.

Expensing Off the Shelf Software. The House version of HR 2 contains a Section 202, titled "Increased Expensing for Small Business". It would amend Section 179 of the Internal Revenue Code, which is codified at 26 U.S.C. § 179, and titled "Election to expense certain depreciable business assets". HR 2 would add to the definition of "Section 179 property" several items, including certain off the shelf software.

Specifically, it would add "computer software (as defined in section 197(e)(3)(B)) which is described in section 197(e)(3)(A)(i), to which section 167 applies, and which is placed in service in a taxable year beginning after 2002 and before 2008". (Parentheses in original.)

The Senate version of the legislation contains a similar, but differently worded, "off the shelf software" provision. See, Section 107 of Senate bill.

5/15. The Senate passed S 1054, Jobs and Growth Tax Relief Reconciliation Act of 2003. More specifically, the Senate incorporated S 1054 into HR 2, the House version of the bill, as an amendment, and then passed HR 2. The vote on final passage was 51-49.

The House passed its version of HR 2 on May 9.

The Senate passed bill, but not the House passed bill, contains a Section 364 titled "Limitation of Deduction for Charitable Contributions of Patents and Similar Property". It would limit the amount of deductions for charitable contributions of patents, copyrights, trademarks, trade secrets, and other intellectual property.

It would amend Section 170 of the Internal Revenue Code, which is codified at 26 U.S.C. § 170. This section provides for the deduction of charitable contributions made within the tax year. Subsection 170(e) provides for the deduction of certain contributions of ordinary income and capital gain property.

This subsection, as amended by the House bill, would provide that the "amount of any charitable contribution of property otherwise taken into account under this section shall be reduced by the sum of ... the amount of gain which would not have been long-term capital gain if the property contributed had been sold by the taxpayer at its fair market value (determined at the time of such contribution), and ... in the case of a charitable contribution ... of any patent, copyright, trademark, trade name, trade secret, know-how, software, or similar property, or applications or registrations of such property ... the amount of gain which would have been long-term capital gain if the property contributed had been sold by the taxpayer at its fair market value (determined at the time of such contribution)." (Parentheses in original.) The new language is in bold.

Sen. Charles Grassley (R-IA), who is the Chairman of the Senate Finance Committee and the sponsor of S 1054, discussed this provision with Sen. Rick Santorum (R-PA) during Senate debate. Congressional Record, at pages S6456-7.

Sen. Santorum stated that ""This section would limit the deduction for charitable contributions of patents and similar properties. It is my understanding that this provision would include a limitation on tax deductions for donation of the following items: any patent, copyright, trademark, trade name, trade secret, know-how, software, or similar property, or applications or registrations of such property. The effective date of this limitation would apply to contributions made after May 7, 2003."

He continued that "I have a specific concern about this provision. I understand the intent behind this change is to eliminate abuses associated with deductions claimed under IRC 170(e)(1)(B). What has resulted, however, is the unintended consequence of capturing legitimate and pending contributions that were in the process of being formalized, but not enacted by the effective date." He referenced two pending transactions in the state of Pennsylvania.

Sen. Grassley stated that "We have learned that there is widespread abuse involving donations of patents and similar property. We made this provision effective May 7, 2003, so that abusive donations could not be rushed to completion if a later effective date was chosen."

5/15. The Senate passed S 1054, Jobs and Growth Tax Relief Reconciliation Act of 2003. More specifically, the Senate incorporated S 1054 into HR 2, the House version of the bill, as an amendment, and then passed HR 2. The vote on final passage was 51-49. During its consideration of the bill, the Senate rejected an amendment offered by Sen. Maria Cantwell (D-WA) that would have further extended the research and development tax credit.

The House passed its version of HR 2 on May 9, without any provision extending the R&D tax credit.

Amendment 577, offered by Sen. Cantwell and others, would have amended Section 41 of the Internal Revenue Code of 1986 to extend the research credit, to increase the rates of the alternative incremental credit, and to provide an alternative simplified credit for qualified research expenses.

This amendment is very similar to a stand alone bill, S 664, which was introduced by Sen. Orrin Hatch (R-UT) and others on March 19, 2003. Sen. Hatch has long been one of the leading proponents in the Senate for making the R&D tax credit permanent.

This amendment was defeated when the Senate rejected a motion to waive the budget point of order against the Cantwell amendment by a vote of 49-50. See, Roll Call No. 154. This motion would have required a 3/5 majority to pass.

It was a nearly straight party line vote. Democrats supported the amendment. Republicans opposed it. Sen. Zell Miller (D-GA) voted with the Republicans. Sen. Hatch voted for the amendment. Sen. Jim Talent (R-MO) did not vote.

Sen. Cantwell stated that "First, it will extend the research credit through June 30, 2014, which is the end of this reconciliation period. Second, it will increase the rates of the alternative incremental credit; and third, it will create a new alternative simplified credit for qualified research expenses."

She added that "The major investments in nano-technology and biotechnology, in software, and in the computer sciences take several years of investments. So what we are talking about is giving businesses the predictability they want to see in research and development so they can move ahead." See, Congressional Record, May 14, 2003, at page S6191.

Sen. Max Baucus (D-MT), the ranking Democrat on the Senate Finance Committee, stated that "the R&D tax credit has been an issue before us for quite some time, almost as long as I can remember since I have been in the Senate. The basic questions are, Should we extend the R&D tax credit and, second, should we make it permanent? Much too often the Congress has decided, yes, to extend the credit, which I agree with, but not to make it permanent. For the life of me, I cannot understand why we have not made this credit permanent."

He added that "Making the R&D tax credit permanent will give U.S. businesses, particularly in the technology sector, the confidence that those companies can invest in research and development and not have to keep guessing whether Congress is going to extend or not extend this tax credit."  See, Congressional Record, May 14, 2003, at page 6192.

Sen. Grassley (at right) stated that "this is another example where I must rise in opposition to an amendment, but not because of the good intent or because I have a disagreement with the amendment, but because of how it is accomplished. And most of that is on the side of where they take the money to pay for the proposal in this amendment, or any other amendment that we have had before us. I am very confident that we will extend the R&D credit this year. I call the attention of my colleagues to the fact that the President has proposed extending it in his budget. I note that the extension is paid for in this amendment by eliminating partial exclusion of dividends, and this exclusion of dividends is meant to encourage the investment we are talking about here."

He added that "While the purpose of the R&D credit is very important, as it encourages higher levels of technology development and innovation which brings about greater productivity, it does not help small businesses that will provide so many new jobs for the economy under our underlying legislation."

Sen. Grassley concluded that "Right now, I have to consider this amendment counterproductive in that it slashes job-creating provisions to give generous tax breaks to large corporations to do research and development. Many may ask: Why do rich corporations need a tax break to do something that is essential to their business anyway? As I indicated, I do support the R&D tax credit, but I also support, more importantly and more eminently, the provisions of this bill which are more broad based in helping to create jobs and doing it in a balanced way, not in the targeted way of this amendment. There is nothing wrong with the amendment. It is just the wrong time and wrong place." See, Congressional Record, May 14, 2003, at pages S6193-4.

5/15. The House Judiciary Committee held a hearing on HR 1115, the Class Action Fairness Act of 2003. This bill would, among other things, amend 28 U.S.C. § 1332, regarding diversity of citizenship. It would provide federal jurisdiction in certain class actions with a minimum total of aggregated claims where any member of a class of plaintiffs is a citizen of a state different from any defendant.

The bill would also require increased judicial scrutiny of class action settlements that provide for coupon and other non-cash settlement payments to plaintiffs. It would also prohibit geographic discrimination in awards to plaintiffs.

Rep. Bob Goodlatte (R-VA), Rep. Rick Boucher (D-VA) and others introduced this bill on March 6, 2003. It is a re-introduction of HR 2341 (107th), which passed in the House by a vote of 233-190. See, story titled "Reps. Goodlatte and Boucher Re-Introduce Class Action Fairness Act" in TLJ Daily E-Mail Alert No. 619, March 10, 2003.

Rep. Goodlatte (at right) stated that "This bill will help end the forum shopping abuses and resultant extortionate settlements that plague class action litigation today ... Real plaintiffs with real grievances will be assured that settlements which give the lawyers millions and coupons to their clients will be stopped.”

Viet Dinh, Assistant Attorney General for the Office of Legal Policy, stated in his prepared testimony, that the Department of Justice supports the bill. He stated that "Class action abuses, however, have taken a toll on our legal system. All too often, class actions represent a lawyer’s rush to the courthouse in order to select the most favorable State forum before duplicative actions purporting to represent the same victims with the same claims are filed in other States. In essence, it becomes a race to the courthouse for the attorneys to see who among them can file and then settle his or her case the fastest and thereby collect attorney’s fees. The losers in this race are the victims who often gain little or nothing through the settlement, yet are bound by it in perpetuity."

See also, prepared testimony of other witnesses: Lawrence Mirel (District of Columbia Department of Insurance and Securities Regulation), John Beisner (O'Melveny & Myers), and Brian Wolfman (Public Citizen Litigation Group).

5/15. The Federal Communications Commission (FCC) announced, but did not release, a Further Notice of Proposed Rulemaking (FNPRM) regarding the regulatory framework for local phone companies offering long distance service.

The FCC issued a press release [3 pages in PDF] describing this FNPRM. It states that this item "seeks comment on the regulatory classification of Bell Operating Companies (BOCs) and independent local exchange carriers (LECs), if and when these carriers provide in-region, interstate and international, interexchange services outside of a separate affiliate."

The FCC further stated that "Once a BOC is authorized under section 271 of the Telecommunications Act of 1996 (1996 Act) to provide in-region, long distance service, it is subject to statutory separate affiliate requirements designed to address potential discrimination and cost misallocation. These section 272 separate affiliate requirements sunset in each state, as prescribed by the 1996 Act, three years after a BOC gains permission to provide long distance in an in-region state, unless extended by the FCC."

This FCC release states that this FNPRM asks for public comments regarding "Whether there is a continued need for dominant carrier regulation of BOCs' in-region long distance service after sunset of the section 272 separate affiliate requirements", "With respect to independent LECs, whether or not they should be classified as non-dominant or dominant in the provision of in-region long distance service if the FCC modifies or eliminates the separate affiliate requirements currently imposed on independent LECs", and "Whether there are alternative regulatory approaches – besides dominant carrier regulation -- to address any potential anticompetitive behavior."

Also, Commissioners Michael Copps and Jonathan Adelstein released a separate statement [PDF]. The wrote that "Last December, the Commission decided to allow the separate affiliate requirements in section 272 to sunset in New York. This was done without, we believed, the detailed requisite market analysis and over the objections of our state colleagues. By revisiting these issues now in this proceeding, the Commission has an opportunity to get them right."

This is CC Docket No. 00-175 and WC Docket No. 02-112. For more information, contact Robert Tanner or Pam Megna at rtanner@fcc.gov, pmegna@fcc.gov or 202-418-1580.

5/16. The Federal Communications Commission (FCC) announced deadlines for comments in its proceeding regarding News Corporations' proposed acquisition of an interest in DirecTV. Comments are due by June 16. Reply comments are due by July 1, 2003.

On April 9, 2003 General Motors (GM) and Hughes Electronics announced that "GM intends to split off Hughes, and simultaneously sell GM's 19.9 percent economic interest in Hughes to News Corp. ... for $14 per share, or approximately $3.8 billion." See, Hughes release. Direct broadcast satellite service (DBS) provider DirecTV is a unit of Hughes. See, story titled "GM, Hughes and News Corps Announce Directv Deal" in TLJ Daily E-Mail Alert No. 643, April 14, 2003.

On May 2, 2003, GM, Hughes and News Corp. submitted an application to the FCC requesting approval of the transfer of licenses associated with the transaction. The proceeding is in the nature of an antitrust merger review.

The FCC stated in its notice [7 pages in PDF] that "If approved, the proposed transaction will permit News Corp. to hold the single largest block of shares in Hughes, thus providing News Corp. with a de facto controlling interest over Hughes and its subsidiaries, including DIRECTV Holdings, LLC, a wholly-owned subsidiary of Hughes which provides DBS service in the United States, as well as Hughes Network Services, Inc., a facilities-based provider of very small aperture terminal (``VSAT´´) network systems, and PanAmSat Corporation, a global facilities-based provider of geostationary-satellite orbit fixed satellite services."

The FCC added that "Rupert Murdoch, chairman and chief executive officer of News Corp., will become chairman of Hughes, and Chase Carey, News Corp.'s former co-chief operating officer, will become president and chief executive officer of Hughes."

The FCC notice also states that "The Applicants claim that approval of the proposed transaction will create direct and tangible public interest benefits without producing any public interest harms in any relevant market. ... Specific claimed benefits include ... aggressively to ensure that broadband services are available to as many American consumers as possible".

On May 8, 2003, Rupert Murdoch testified before the House Judiciary Committee. He argued that there are neither horizontal nor vertical merger concerns associated with the proposed transaction. He also said in his prepared testimony that "News Corp. will work aggressively to build on the services already provided by Hughes to make broadband available throughout the U.S., particularly in rural areas." See, story titled "Murdoch Defends News Corp.'s DirecTV Deal" in TLJ Daily E-Mail Alert No. 659, May 12, 2003.

The FCC also stated that "Because this proceeding involves broad public policy issues, the proceeding will be treated as ``permit but disclose´´ for purposes of the Commission's ex parte rules. See generally 47 C.F.R. §§ 1.1200-1.1216."

This is MB Docket No. 03-124. For more information, contact Marcia Glauberman at mglauber@fcc.gov or 202 418-7046 or Linda Senecal at lsenecal@fcc.gov or 202 418-7044.

5/16. The Bureau of Industry and Security (aka Bureau of Export Administration) published a notice in the Federal Register requesting public comments on its proposal titled "Best Practices for Exporters/Re-exporters and Trade Facilitation/Freight Forwarding Companies Regarding the Transit, Transshipment, and Reexport of Dual-Use Items". These "best practices" are recited in the notice. The deadline to submit comments is June 16, 2003. For more information, contact Rick Cupitt at rcupitt@bis.doc.gov or 202 482-1459. See, Federal Register, May 16, 2003, Vol. 68, No. 95, at Pages 26567 - 26569.

5/16. The National Institute of Standards and Technology (NIST) published a notice in the Federal Register announcing, and requesting public comments on, its document [12 pages in PDF] titled "Draft Federal Information Processing Standard (FIPS) 199 on Standards for Security Categorization of Federal Information and Information Systems". The NIST states that this document "defines requirements to be used by Federal agencies to categorize information and information systems, and to provide appropriate levels of information security according to a range of risk levels. This draft standard establishes three potential levels of risk (low, moderate, and high) for each of the security objectives of confidentiality, integrity, and availability. The levels of risk are based on what is known about the potential impact or harm. Harmful events can impact agency operations (including mission, functions, image or reputation), agency assets, or individuals (including privacy). The levels of risk consider both impact and threat, but are more heavily weighted toward impact." The deadline for comments is August 14, 2003. For more information, contact Ron Ross at 301 975-5390 or rross@nist.gov. See, Federal Register, May 16, 2003, Vol. 68, No. 95, at Pages 26573 - 26574.

5/14. The House Science Committee (HSC) held a hearing on cyber security research and development. See, prepared testimony of Arden Bement, Director of the National Institute of Standards and Technology (NIST); prepared testimony of Charles McQuery, Under Secretary for Science and Technology at the Department of Homeland Security; prepared testimony of Rita Colwell, Director of the National Science Foundation (NSF); and prepared testimony of Anthony Tether, Director of the Defense Advanced Research Projects Agency (DARPA). See also, hearing charter and HSC release.

5/16. Representatives of the Department of Justice (DOJ), Federal Trade Commission (FTC), U.S. Postal Service (USPS), and other government agencies hosted an event in Washington DC to tout recent enforcement actions related to internet fraud. The DOJ issued a summary of indictments, complaints, and criminal informations, most of which have been returned or filed since January of 2003. However, some of these actions date back several years. Several were previously reported in the TLJ Daily E-Mail Alert. "High-tech scam artists who think they can hijack the Internet should think again," said Michael Chertoff, Assistant Attorney General. See, DOJ release. Chertoff's nomination to the U.S. Court of Appeals (3rdCir) is currently being considered by the Senate. Also, on May 15, the FTC and other government agencies hosted an event in Dallas, Texas, to tout recent enforcement actions related to unsolicited bulk e-mail. See, FTC release.

5/19. The Senate Armed Services Committee (SASC) completed its markup of the defense authorization bill on May 9. On May 13, Sen. John Warner (R-VA), the Chairman of the SASC, introduced S 1050, the "National Defense Authorization Act for Fiscal Year 2004", which reflects the Committee markup. The full Senate is scheduled to begin consideration of the bill on May 19. This is a huge bill. Many provisions are information technology related.

The bill authorizes the appropriation of $10.7 Billion for science and technology projects, provides for network centric wireless communications R&D, revises spectrum management, provides for Department of Defense (DOD) use of private sector IT services, amends the Clinger Cohen Act regarding DOD procurement of IT equipment, creates a program to monitor and analyze the research activities and capabilities of foreign nations, and provides for education in math, science, engineering, technology, and information assurance.

See also, Sen. Warner's summary of the bill, and Senate Report No. 108-046.

$10.7 Billion Authorized for Science & Tech. Section 202 of the Senate bill authorizes the appropriation of $10,705,561,000 for "science and technology projects".

Network Centric Wireless Communications R&D. Section 234 provides that "The Secretary of Defense shall carry out a program of research and development to promote greater bandwidth capability with high-speed network-centric communications". In particular, "the Secretary shall ... identify areas of advanced wireless communications in which research and development, or the leveraging of emerging technologies, has significant potential to improve the performance, efficiency, cost, and flexibility of advanced network-centric communications systems".

It further provides that the Secretary shall "develop a coordinated plan for research and development on (i) improved spectrum access through spectrum-efficient network-centric communications systems; (ii) networks, including complex ad hoc adaptive network structures; (iii) end user devices, including efficient receivers and transmitter devices; (iv) applications, including robust security and encryption ..."

Spectrum Management. Section 803 provides that "Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall revise and reissue Department of Defense Directive 4650.1, relating to management and use of the radio frequency spectrum, last issued on June 24, 1987, to update the procedures applicable to Department of Defense management and use of the radio frequency spectrum." See, Defense Directive 4650.1 [PDF].

This section would also require "that each military department or Defense Agency carrying out a program for the acquisition of a system that is to use the radio frequency spectrum consult with the official or board" to be designated by the Secretary of Defense.

DOD Use of Private Sector IT Services. Section 812 authorizes, but does not require, the Secretary of Defense to "carry out a pilot program for use of a best value criterion in the selection of sources for performance of information technology services for the Department of Defense".

This section further provides, subject to certain exceptions, that "Under the pilot program ... the Secretary shall procure information technology services necessary for or beneficial to the accomplishment of the authorized functions of the Department of Defense ... from a source in the private sector if performance by that source represents the best value to the United States ..."

DOD Procurement of IT Equipment. Section 822 provides that "The Secretary of Defense shall establish a board of senior acquisition officials to administer the implementation of the policies and requirements of chapter 113 of title 40 in procurements of information technology equipment determined by the Secretary as being an integral part of a weapon or a weapon system".

Moreover, this section provides that this board shall ensure that "issues of spectrum availability, interoperability, and information security are appropriately addressed in the development of weapons and weapon systems".

Monitoring Research of Other Nations. Section 231 is titled "Global Research Watch program in the Office of the Director of Defense Research and Engineering". This section creates a "Global Research Watch", the goal of which is to "monitor and analyze the basic and applied research activities and capabilities of foreign nations in areas of military interest, including allies and competitors". It would also "establish and maintain an electronic database on international research capabilities, comparative assessments of capabilities, cooperative research opportunities, and ongoing cooperative programs".

This section further provides that "Information in electronic databases of the Global Research Watch program shall be maintained in unclassified form and, as determined necessary by the Director, in classified form in such databases".

SMET/IT Education. Section 233 authorizes the Secretary of Defense to "support educational programs in science, mathematics, engineering, and technology", by, among other things, entering into contracts, making "grants of financial assistance", and providing "cash awards".

Section 533 makes certain enlisted personnel eligible for "a program of education in information assurance as a participant in the Information Security Scholarship program".

Sen. Warner also stated in his summary of the bill that it authorizes "$7.0 million for information assurance technologies, including a $3 million increase for the Information Assurance Scholarship Program which trains the next generation of information assurance professionals to defeat the increasing threat of cyber-terrorism."

More Tech Provisions. Section 361 provides that "The Secretary of Defense may sell working-capital funded services of the Defense Information Systems Agency to a person outside the Department of Defense for use by that person in the performance of the Navy-Marine Corps Intranet contract."

Section 232 provides for a biennial strategic plan by the Defense Advanced Research Projects Agency (DARPA).

Section 911 provides that "The Under Secretary of the Air Force, in consultation with the Director of Defense Research and Engineering, shall develop a space science and technology strategy and shall review and, as appropriate, revise the strategy annually."

The bill also added $60.0 Million to the administration's request for the Advanced Extremely High Frequency (AEHF) communications satellite. The DOD website describes this as "next generation highly secure, high capacity communications satellites and ground command and control system as a follow-on capability to DoD’s current Milstar communications satellite program."

The bill also added $80.0 Million to the administration's request to accelerate the Global Positioning System III (GPS III) next generation navigational satellite.

5/19. The House Armed Services Commitee (HASC) completed its markup of HR 1588, its version of the defense authorization bill, on May 14. The House is scheduled to take up this bill beginning on Wednesday, May 21. This is a huge bill with many technology related provisions.

This bill is sponsored by Rep. Duncan Hunter (D-CA), the Chairman of the HASC. The HASC approved this bill by a vote of 58-2. See also, HASC summary of HR 1588 and Report No. 108-106.

Section 202 of the House bill provides that "$10,893,077,000 shall be available for the Defense Science and Technology Program", which is slightly more than the Senate proposal.

The HASC summary states that "Defense science and technology programs are critical to maintaining U.S. military technological superiority in the face of evolving threats to U.S. national security interests around the world. However, the Administration’s budget request for science and technology of 2.7 percent of the total DOD budget does not meet the goal of three percent established by the 2001 Quadrennial Defense Review. In addition, the committee is concerned that the military services’ science and technology budget requests are not sufficient to meet their transformation goals. As such, the committee recommends $10.9 billion ($662 million more than the Administration’s request) for the DOD science and technology program, including $2 billion for the Army, $1 billion for the Navy, $2.3 billion for the Air Force, and $4.7 billion for Defense Agency science and technology (including $2.9 billion for DARPA, the Defense Advanced Research Projects Agency)." (Parentheses in original.)

The House bill, like the Senate bill, adds $60 Million to the President's request for the AEHF system. The HASC summary states that "The Advanced Extremely High Frequency (AEHF) military satellite communication system (MILSATCOM), provides secure, global communications to support U.S. and allied forces on the land or sea, and in the air. It also connects strategic activities such as nuclear operations, theater missile defense, space operations, and intelligence. The committee recommends $838.1 ($60 million more than the Administration’s request) for AEHF."  (Parentheses in original.)

The HASC summary also states that "The Advanced Wideband System is a high-capacity tactical communications system that, once developed, is intended to provide greatly enhanced communications for the warfighter. However, much of the system is not mature, and the final transformational communications architecture has yet to be determined. Slightly less funding will allow technology maturation and risk reduction, while freeing resources for urgently needed nearer term systems, such as the Advanced EHF MILSATCOM. Therefore, the committee recommends $359.3 million ($80 million less than the Administration's request to better pace program growth) for the Advanced Wideband System."

The House bill, at Section 1429, authorizes telecommuting at federal contractors.

Like the Senate bill, the House bill allows certain enlisted members to receive instruction in the information security scholarship program at the Naval Postgraduate School.

The House bill, at Section 331, provides that the "Chief Information Officer of the Department of Defense and the Chief Information Officer of a military department shall ... encourage the use of performance-based and results-based management ..."

The House will meet at 12:30 PM for morning hour and at 2:00 PM for legislative business. It will consider several non tech related items under suspension of the rules. Votes will be postponed until 6:30 PM. See, Republican Whip Notice.

The Senate will meet at 2:00 PM for morning hour. At 2:30 PM it will begin consideration of S 1050, the Defense Department Authorization bill. At 5:00 PM it will vote on the nomination of Maurice Hicks to be a Judge of the U.S. District Court (WDLa).

The Supreme Court will return from a recess that it began on Monday, May. 5.

9:30 AM - 5:00 PM. The Federal Communications Commisssion's (FCC) Office of Engineering and Technology (OET) will host a public workshop on cognitive radio technologies. See, notice and agenda [PDF]. This event will be webcast. For more information, contact Michael Marcus at 202 418-2418 or mike.marcus @fcc.gov or Jim Schlichting at 202 418-1547 or jim.schlichting @fcc.gov. Location: FCC, Commission Meeting Room, 445 12th Street, SW.

The House will meet at 9:00 AM for morning hour and at 10:00 AM for legislative business. It will consider several non tech related items under suspension of the rules.

9:00 AM. Chris Israel, of the Commerce Department's Technology Administration, will speak at the Young Entrepreneurs Leadership Network Conference on the significance of technology, entrepreneurship and cooperation in a knowledge based economy. Location: Organization of American States, 17th Street & Constitution Ave., NW.

RESCHEDULED FROM MAY 15. 2:00 PM. The Senate Banking Committee will hold a hearing to examine the Fair Credit Reporting Act (FCRA) and issues presented by the re-authorization of the expiring preemption provisions. Howard Beales, Director of the Federal Trade Commission's (FTC) Bureau of Consumer Protection, will testify. Location: Room 538, Dirksen Building.

6:00 - 8:15 PM. The Federal Communications Bar Association (FCBA) will host a continuing legal education (CLE) program titled "What Every Communications Practitioner Should Know About Sarbanes Oxley and Corporate Compliance". The speakers will include Tom Hickey (Assistant General Counsel, Nextel), Barry Summer (Assistant Director, Division of Corporation Finance, SEC), and Andrew Hruska (Office of the Deputy Attorney General). Location: Dow Lohnes & Albertson, 1200 New Hampshire Avenue, NW, Suite 800.

Deadline to submit reply comments to the Federal Communications Commission (FCC) regarding AOL Time Warner's petition [58 pages in PDF] requesting relief from the FCC's January 22, 2001 Memorandum Opinion and Order (MOO) approving the merger of AOL and Time Warner, and imposing conditions upon AOL Time Warner regarding instant messaging services. Specifically, AOL Time Warner seeks relief from the condition restricting its ability to offer internet users streaming video advanced Instant Messaging based high speed services (AIHS) via AOL Time Warner broadband facilities.

Deadline to submit requests to the U.S. Patent and Trademark Office (USPTO) to present oral testimony at it May 30 hearing regarding its notice of proposed rulemaking (NPRM) to amend its regulations to implement the Madrid Protocol Implementation Act of 2002 (MPIA). See, notice in the Federal Register, March 28, 2003, Vol. 68, No. 60, at Pages 15119 - 15138.

The House will meet at 10:00 AM for legislative business. It is scheduled to begin consideration of the defense authorization bill.

9:00 - 11:00 AM. The U.S. Patent and Trademark Office (USPTO) and the U.S. Copyright Office (CO) will hold a meeting to discuss the preparation of a new text of the Hague Jurisdiction and Enforcement of Judgments Convention. See, notice. Location: USPTO, 2121 Crystal Drive, Crystal Park 2, Suite 902, Arlington, VA.

9:00 AM. Bruce Mehlman, of the Commerce Department's Technology Administration, will speak on "Tech Transfer and Opportunities for Future Commercialization" at the COMDEX Innovation Forum on Tech Transfer. Location: Omni Shoreham Hotel, 2500 Calvert Street, NW.

9:30 AM. The Senate Commerce Committee will hold a hearing on unsolicited bulk e-mail. Press contact: Rebecca Hanks 202 224-2670 or Andy Davis at 202 224-6654. Location: Room 253, Russell Building.

10:00 AM. The Senate Judiciary Committee will hold a hearing on the nomination of Hewitt Pate to be Assistant Attorney General in charge of the Department of Justice's Antitrust Division. Press contact: Margarita Tapia at 202 224-5225. Location: Room 226, Dirksen Building.

10:00 AM. The Senate Banking Committee will hold a hearing titled "National Export Strategy". The witnesses will be Donald Evans (Secretary of Commerce), Philip Merrill (President of the Export Import Bank of the United States), Thelma Askey (Director of the U.S. Trade and Development Agency), Peter Watson (President of the Overseas Private Investment Corporation), Hector Barreto (Administrator of the Small Business Administration). See, notice. Location: Room 538, Dirksen Building.

10:00 AM - 1:00 PM. The NetChoice Coalition and The New Republic (TNR) will host a symposium on "Spam, Privacy and E-Commerce". The scheduled speakers are Scott Shipman (eBay), Gary Doernhoefer (Orbitz), Michael Mayor (direct e-mail marketer), Ramsen Betfarhad (Majority Counsel, House Commerce Committee), Peter Filon (Minority Counsel, House Commerce Committee), Rob Courtney (Center for Democracy and Technology), and Jeff Rosen (TNR). For More Information, contact Mark Blafkin at 202 331-2130 x104 or mblafkin@actonline.org. Location: The Hall of States, 444 North Capitol, Room 383.

10:45 AM. Chris Israel, of the Commerce Department's Technology Administration, will participate in a panel at the National Business Incubator Association Annual Conference. He will also release two reports titled "Business Incubation: Emerging Trends for Profitability and Economic Development in the U.S., Central Asia, and the Middle East" and "A National Benchmarking Analysis of Technology Business Incubator Performance and Practices." Location: Richmond Marriot, Richmond, VA.

12:00 NOON. The Federal Communications Bar Association's (FCBA) Transactional Practice Committee will host a brown bag lunch. The topics will include "the purposes of opinions within the context of various transactions and typical regulatory opinion language". The speakers will include John Quale (Skadden Arps) and James Rogers (Latham & Watkins). RSVP to Margery Singleton at 202 637-2200 or margery.singleton @lw.com Location: Latham & Watkins, 555 11th Street, NW, Suite 1000.

12:15 PM. The Federal Communications Bar Association's (FCBA) Mass Media Practice Committee will host a brown bag lunch titled "Getting Ready for Radio Station License Renewal". The speakers will include Roy Stewart, Chief of the of the Federal Communications Commission's (FCC) Office of Broadcast Licence Policy, and Peter Doyle, Chief of the FCC's Audio Division. RSVP to Wendy Parish at wendy@fcba.org. Location: NAB, 1771 N St., NW, 1st Fl. Confr. Rm.

? 2:00 - 3:00 PM. The House Homeland Security Committee's (HHSC) Subcommittee on Cybersecurity, Science, and Research & Development will hold a hearing titled "Homeland Security Science and Technology: Preparing for the Future." The witnesses will include Charles McQueary, Under Secretary of the Department of Homeland Security (DHS). The HHSC lists this hearing as scheduled for 2:00 PM, while the DHS lists it at 10:00 AM. Location: Room 2118, Rayburn Building.

6:00 - 8:00 PM. D.C. Bar Association's Intellectual Property Law Section will host a continuing legal education (CLE) program titled "Recent Developments in Technology Transfer with the Federal Government: Focus on Intellectual Property". The speakers will be Paul Gottlieb (Assistant General Counsel, Technology Transfer and Intellectual Property, Department of Energy), Holly Svetz (Morrison & Foerster), and Richard Litman. The prices to attend range from $70 to $90. Location: DC Bar Conference Center, 1250 H Street NW, B-1 level.

Deadline to submit comments to the Copyright Office (CO) in response to its notice of proposed rules that rules would "govern SoundExchange, an unincorporated division of the Recording Industry Association of America, Inc., when it functions as the designated agent for the purpose of receiving royalty payments and statements of accounts from nonexempt subscription digital transmission services which make digital transmissions of sound recordings under a statutory license." See, Federal Register, April 21, 2003, Vol. 68, No. 76, at Pages 19482 - 19485.

Extended deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) [MS Word] titled "In the Matter of Second Periodic Review of the Commission’s Rules and Policies Affecting the Conversion To Digital Television". This is MB Docket No. 03-15, RM 9832, and MM Docket Nos. 99-360, 00-167, and 00-168. See also, FCC release and notice in the Federal Register, February 18, 2003, Vol. 68, No. 32, at Pages 7737-7747. And see, notice [PDF] extending deadlines.

Deadline to submit "white papers" to the Office of Science and Technology Policy' (OSTP) High End Computing Revitalization Task Force (HECRTF) regarding high end computing. See, notice in the Federal Register, May 14, 2003, Vol. 68, No. 93, at Page 25888.

The House will meet at 10:00 AM for legislative business.

9:30 AM. The Senate Commerce Committee will hold yet another hearing on media ownership. Press contact: Rebecca Hanks 202 224-2670 or Andy Davis at 202 224-6654. Location: Room 253, Russell Building.

10:00 AM. The Senate Indian Affairs Committee will hold a hearing on telecommunications in Indian country. Location: Room 485, Russell Building.

2:00 PM. The Senate Judiciary Committee will hold a hearing on several pending judicial nominations, including Richard Wesley (Second Circuit), Ronnie Greer (Eastern District of Tennessee), Thomas Hardiman (Western District of Pennsylvania), Mark Kravitz (District of Connecticut), John Woodcock (District of Maine). Press contact: Margarita Tapia at 202 224-5225. Location: Room 226, Dirksen Building.

2:30 PM. The Senate Commerce Committee's Subcommittee on Communications will hold a hearing to examine wireless broadband in rural areas. Location: Room 562, Dirksen Building.

The House will meet at 9:00 AM for legislative business.

10:00 - 11:30 AM. The Federal Communications Commission's (FCC) Media Security and Reliability Council will hold a meeting. See, notice in Federal Register: November 19, 2002, Vol. 67, No. 223, at Page 69742. For more information, contact Barbara Kreisman at 202-418-1600. Location: FCC, 445 12th St. SW Room TW-C305.

Deadline to submit to the Department of Commerce (DOC) nominations for award of the National Medal of Technology. See, nomination guidelines and notice in the Federal Register, February 14, 2003, Vol. 68, No. 31, at Pages 7509.

Memorial Day. The House and Senate will be in recess for the Memorial Day District Work Period from May 26 through May 30.

5/13. Sen. Olympia Snowe (R-ME), Sen. Bill Frist (R-TN), and others introduced S 1053, the "Genetic Nondiscrimination Act of 2003", a bill to prohibit discrimination on the basis of genetic information with respect to health insurance and employment. It was referred to the Senate Committee on Health, Education, Labor, and Pensions.

5/13. S 1050, the Senate version of the "National Defense Authorization Act for Fiscal Year 2004", requires a report on the potential uses of unmanned aerial vehicles (UAVs) for homeland security missions. This version of the defense authorization bill was introduced on May 13. The Senate is scheduled to begin consideration of this bill on May 19. See, summary [15 pages in PDF], at page 9, written by the Senate Armed Services Committee.

5/14. HR 1588, the House version of the "National Defense Authorization Act for Fiscal Year 2004", authorizes appropriations for the development of facial recognition technology. The House Armed Services Committee (HASC) approved the bill on May 14 by a vote of 58-2. The House is scheduled to begin consideration of this bill on May 21. See, HASC summary of the bill.

5/16. The Federal Bureau of Investigation (FBI) published a notice in the Federal Register stating that the National Crime Prevention and Privacy Compact Council will hold a meeting on June 24-25, 2003. The topics addressed at the meeting may include the exchange of criminal history records, fingerprint records, the "Noncriminal Justice Outsourcing Initiatives", and "extending federal civil criminal justice applicant background investigation to include criminal records checks of friends, relatives and associates". Consistent with the FBI's commitment to making the policy making activities and operations of government open and accessible to the public in a transparent manner, the meeting will be held in West Yellowstone, Montana, and will not be webcast. See, Federal Register, May 16, 2003, Vol. 68, No. 95, at Pages 26649 - 26650. See also, West Yellowstone fly fishing guide.