Internet Stories: January - March 1999

Sen. Kyl Releases Revised Internet Gambling Ban Bill. (3/30/99) Sen. Jon Kyl released his "Internet Gambling Prohibition Act" on Monday, March 29. The 28 page bill bans most forms of gambling on the Internet. The exceptions listed in the bill include state lotteries and fantasy sports leagues. The bill also provides interactive computer services  immunity for hosting gambling web sites, immunity for shutting them off, and no duty to monitor, provided they shut off illegal gambling businesses when told to do so by law enforcement.

Schumer, Rush Introduce Bills to Regulate Net Gun Sales. (3/30/99) Sen. Charles Schumer and Rep. Bobby Rush have introduced the "Internet Gun Trafficking Act of 1999" in the Senate and House. This proposal would, among other things, require any web site operator who facilitates the sale of firearms to become a federally licensed gun dealer.

House Judiciary Committee Approves SAFE Act. (3/25/99) The House Judiciary Committee approved the SAFE Act by a unanimous voice vote on Wednesday, March 24. The encryption bill also has to be approved by the House International Relations Committee.

Senate Committee Holds Hearing on Internet Gambling. (3/24/99) The Senate Subcommittee on Technology, Terrorism, and Government Information held a hearing on Internet gambling on Tuesday morning, March 23. Sen. Jon Kyl stated that he will re-introduce a bill to ban most forms of Internet gambling.

Congressional Republicans Challenge Kennard on Regulation of Internet and Access Charges on Net Service. (3/20/99) A group of Republican Representatives and Senators wrote to FCC Chairman William Kennard on Thursday, March 18, asking him to work with them in drafting legislation that would prevent the FCC from regulating the Internet, or assessing access charges on Internet service.

Study Shows that People in Areas with Higher Sales Taxes Buy More on the Net. (3/19/99) A statistical study of buying habits shows that consumers who live in areas with higher sales taxes are more likely to make online purchases than those in areas with lower sales taxes. University of Chicago Professor Austan Goolsbee presented this finding in a seminar on March 19 at the American Enterprise Institute.

AEI's Newt Gingrich Addresses Internet Taxes. (3/19/99) Former House Speaker Newt Gingrich spoke about Internet taxes at an American Enterprise Institute event on Friday, March 19.

Senate Committee Holds Hearing on Internet Alcohol Sales. (3/9/99) The Senate Judiciary Committee held a hearing on Tuesday morning, March 9, on Internet and interstate alcohol sales. Sen. Hatch stated that he would introduce legislation to assist states in enforcing laws that prohibit the sale of alcohol to minors.

Supporters of Internet Filtering Back Franks-McCain Bill. (3/3/99) Supporters of the Children's Internet Protection Act held a press conference on Capitol Hill on Tuesday afternoon, March 2. Leaders of several groups, and Rep. Bob Franks, stated the case for requiring schools and libraries which receive e-rate subsidies to use filtering software to protect children from Internet pornography and child predators.

E-Rate Termination Bill Filed in House. (2/17/99) Rep. Tom Tancredo introduced a bill in the House on February 10 which would eliminate the e-rate, a Federal Communications Commission program for subsidizing telecommunications services and computer networking for schools and libraries. See, HR 692 IH.

Online Privacy Proposals Abound in Congress. (2/16/99) It has been barely a month since the 106th Congress began, yet there are already several proposals that would affect the way web sites and online services collect and disseminate personal information. Sen. Burns released a discussion draft of his proposal on Friday, February 12. Representatives Vento and Franks submitted their bills last month.

Appeals Court Reverses District Court in Urofsky Case. (2/12/99) The U.S. Court of Appeals for the Fourth Circuit reversed a trial court decision which had struck down a Virginia law which barred most state employees from using their work computers to view porn. The ACLU had successfully argued in the trial court that the law violated First Amendment free speech rights. See, copy of Appeals Court Opinion.

House Committee Holds Hearing on Publishing Disaster Data on Internet. (2/11/99) Two subcommittees of the House Commerce Committee held a joint hearing on February 10 on a statute set to take effect shortly that might result in the publication on the Internet of data from operators of facilities with hazardous materials, including their "worst case scenario" information about threats posed by their hazardous chemicals. The hearing was held because Committee Chairman Bliley, and the FBI, had expressed concerns that this information on the Internet could be accessed and searched from anywhere by anyone, including terrorists looking for targets that would cause the greatest loss of life.

ACLU and PFAW Seek $488,610.10 in Attorneys Fees in Filtering Suit. (2/10/99) The ACLU and People for the American Way have requested a total of $488,610.10 in attorneys fees and costs in their suit against the Loudoun County public library for using software that filters out Internet pornography. Last November Judge Binkema ruled against the library, on motions for summary judgment, without a trial.

Billing Records Reveal Details of Loudoun Filtering Case. (2/10/99) When the ACLU and People for the American Way filed their demands for $488,610.10 in attorneys fees in the Loudoun Library filtering software case, they filed their daily time records, as is expected. These records detail the claim and provide a rare inside glimpse into the activities and operations of the lawyers. And in contrast, the lawyers for the Loudoun library, and lawyers doing similar work in similar matters, put in far less work.

Appeal Still Possible in Loudoun Case. (2/10/99) Its has been nearly three months since U.S. District Court Judge Leonie Brinkema issued her decision which held unconstitutional the Loudoun Country library's Internet porn filtering policy. However, the question of whether the library will pursue an appeal is still up in the air, largely because of an irreconcilable dispute over how much attorneys fees the ACLU and People for the American Way should get. They want $488,610.10.

Daley and Pitofsky Hold Joint Press Conference on E-Commerce and Privacy. (2/6/99) Secretary of Commerce William Daley and FTC Chairman Robert Pitofsky held a press conference on Friday, February 5, to announce that the Department of Commerce will start keeping annual statistics on commercial sales on the Internet. Currently, Internet sales are included in the catalogue sales category. Both men also reiterated that industry should take the lead on privacy issues, through self-regulation. Both were silent on encryption.

Kennard Says FCC Will Not Require AT&T to Open its Cable Network. (2/4/99) FCC Chairman William Kennard stated today that the FCC will not require AT&T and TCI to open their broadband cable network. AOL and ISPs have asked the FCC to impose this as a condition for approval of the pending merger of AT&T and TCI.  Kennard made the statement during an impromptu press conference after an address to the AARP in Washington DC.  See, transcript of press conference.

McCain and Hollings Reintroduce School Filtering Bill. (1/22/99)  Sen. John McCain and Sen. Ernetst Hollings reintroduced a bill that would require schools and libraries receiving universal service funds under the "e-rate" program to use filtering software on computers with Internet access.  See, S 97, Childrens' Internet Protection Act.

Rep. Oxley Calls FCC Regulation the Greatest Threat to the Internet. (1/19/99)  Rep. Mike Oxley said in a speech on Friday, January 15, that "the greatest threat to the Internet is the threat that it will be stifled by overregulation, and the greatest threat of overregulation comes, not from the Congress, but from the Federal Communications Commission."  See, copy of speech.

Judge Dismisses Livermore Library Filtering Suit. (1/15/99)  Judge George Hernandez dismissed the suit Kathleen R. v. City of Livermore on Thursday, January 14.  The Plaintiffs had sought to compel the City's public libraries to install software that blocks obscene material on computers used by children.  The Plaintiffs will appeal.

Sen. Burns Challenges FCC on Broadband Internet Access. (1/12/99)  Sen. Conrad Burns, Chairman of the Senate Communications Subcommittee, criticized the FCC's interpretation of Section 706 of the Telecommunications Act of 1996, in a strongly worded letter to Chairman William Kennard on January 11.  Burns asserted that the FCC has failed to encourage the development of highspeed Internet access as required by §706.  See, copy of Sen.  Burns' letter.