Source: http://www.techlawjournal.com/alert/2002/07/16.asp
Timestamp: 2019-04-20 10:24:20+00:00

Document:
TLJ Daily E-Mail Alert No. 470, July 16, 2002.
July 16, 2002, 9:00 AM ET, Alert No. 470.
7/15. The House passed HR 3482, the Cyber Security Enhancement Act, by a vote of 385-3. See, Roll Call No. 296.
The bill, which is sponsored by Rep. Lamar Smith (R-TX), contains provisions relating to sentencing guidelines for computer hacking crimes, authority of Internet service providers (ISPs) and others to voluntarily disclosure the content of communications to law enforcement and other government entities, appropriations for the National Infrastructure Protection Center (NIPC), and other topics. The bill further amends several sections of the criminal code that were amended by the USA PATRIOT Act late last year.
Industry groups, such as the Business Software Alliance (BSA), support the bill. Robert Holleyman, P/CEO of BSA, stated in a release that "The House today took a much needed step toward protecting this nation's networks and information infrastructure ... This bill makes it clear that cyber criminals will be punished."
The Center for Democracy and Technology (CDT) and the Free Congress Foundation (FCF) opposed Section 102 of the bill. Brad Jansen of the FCF stated that "H.R. 3842 is unnecessary and duplicative. It reduces the accountability of the government in implementing provisions of the USA PATRIOT Act, leaving the door open even wider to allowing abuses of civil liberties and privacy rights of law abiding Americans."
Section 101 of the bill requires the U.S. Sentencing Commission to amend the federal sentencing guidelines with respect to violations of 18 U.S.C. § 1030, which pertains to crimes involving intentionally accessing a computer without authorization, or in excess of authorized access.
Section 102 of the bill, which is the most controversial item, amends 18 U.S.C. § 2702(b), regarding voluntary disclosure of the contents of communications. Currently, the statute provides that "A person or entity may divulge the contents of a communication ... (6) to a law enforcement agency ... (C) if the provider reasonably believes that an emergency involving immediate danger of death or serious physical injury to any person requires disclosure of the information without delay." The bill would allow the disclosure "to a Federal, State, or local governmental entity, if the provider, in good faith, believes that an emergency involving danger of death or serious physical injury to any person requires disclosure without delay of communications relating to the emergency."
Hence, the bill lowers the standard that ISPs and others must meet before they voluntarily release information -- from "reasonably believes" to "good faith". It also removes the immediacy requirement. It also expands the set of entities to which information can be released -- from "law enforcement agency" to "to a Federal, State, or local governmental entity".
Section 104 of the bill authorizes the appropriation of $125,000,000 for the FBI's National Infrastructure Protection Center (NIPC) for fiscal year 2003.
Section 105 of the bill amends 18 U.S.C. § 2512, which pertains to the advertising of certain illegal devices. The statute prohibits the advertising of "any electronic, mechanical, or other device, knowing or having reason to know that the design of such device renders it primarily useful for the purpose of the surreptitious interception of wire, oral, or electronic communications." Section 105 of the bill specifically includes advertising on the Internet.
Section 106 of the bill amends 18 U.S.C. § 1030(c), which pertains to punishment of crimes involving intentionally accessing a computer without authorization or in excess of authorized access. For example, the bill would increase the maximum penalty to life imprisonment for crimes where the "offender knowingly or recklessly causes or attempts to cause death".
Section 107 of the bill ensures that providers of communications remain covered under 18 U.S.C. § 2703(e), a "no cause of action provision," which protects providers from law suits when they legally assist law enforcement with an investigation under the new emergency disclosure exception created in the USA PATRIOT Act.
Section 108 of the bill amends 18 U.S.C. § 3125, regarding emergency use of pen registers and trap and trace (PRTT) devices. Currently, under 18 U.S.C. § 3125, law enforcement authorities may use PRTT devices for 48 hours in certain emergency situations, while court authority is being sought. Section 108 would expand the list of situations to include "an immediate threat to a national security interest" and "an ongoing attack on a protected computer (as defined in section 1030) that constitutes a crime punishable by a term of imprisonment greater than one year".
Section 109 of the bill raises penalties for illegally intercepting cell phone conversations, and increases penalties for unlawful access to stored communications.
7/15. The Senate approved S 2673, the Public Company Accounting Reform and Investor Protection Act of 2002, by a vote of 97-0. The bill creates an independent board to oversee auditors of public companies, restricts auditors from providing many consulting services, requires CEOs and CFOs to be personally responsible for the accuracy of their companys' financial reports, and gives the Securities and Exchange Commission (SEC) more resources.
However, the bill contains no provision requiring companies to treat stock options as expenses. Sen. George Allen (R-VA), and others, had opposed such language, in part because it would discourage technology companies from offering their employees stock option plans.
The House passed a different accounting reform bill, HR 3763, the Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002, on April 24, 2002. Differences will have to be resolved in a conference committee.
Sen. Paul Sarbanes (D-MD), the sponsor of the Senate bill, stated that "For nearly seventy years, our framework of securities laws has proved remarkably effective at protecting investors. Recent events, though, have shown how urgently this framework needs reform. We must ensure that investors can once again trust corporate executives and their financial reports, and have confidence in the independence of accountants and analysts. We also must assure that the SEC has adequate funds to carry out its mandate."
SEC Chairman Harvey Pitt said in a release that "the Senate moved one step closer towards meaningful and effective oversight of accounting regulation in America." He added that "There is much to commend in the legislation that has passed in the House and Senate, and the SEC looks forward now to working with Congressional leaders in reconciling their proposals and passing a final bill that will help restore investor confidence and integrity in America's capital markets."
7/13. The State Department announced that "U.S. Ambassador Robert P. Finn and Afghanistan’s Minister of Commerce, Sayed Mustafa Kazemi, signed an agreement in Kabul July 13 to provide the ministry with Internet connectivity and 10 computer terminals. The Center is expected to be functioning within one month. The grant for the equipment and Internet service, valued at $50,000, is provided through the U.S. Agency for International Development ..." See, release.
7/11. The House Government Reform Committee amended and approved HR 5005, the Homeland Security Act of 2002. This Committee's version of the bill includes a new Section 214 which provides, among other things, a Freedom of Information Act exemption for certain critical infrastructure information voluntarily shared with the federal government. It would replace Section 204 of the bill as introduced.
Section 214 provides, in part, that "Notwithstanding any other provision of law, critical infrastructure information (including the identity of the submitting person or entity) that is voluntarily submitted to a covered Federal agency for use by that agency regarding the security of critical infrastructure and protected systems, if analysis, warning, interdependency study, recovery, reconstitution, or other informational purpose, when accompanied by an express statement specified in paragraph (2) -- (A) shall be exempt from disclosure under section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act); (B) shall not be subject to any agency rules or judicial doctrine regarding ex parte communications with a decision making official; (C) shall not, without the written consent of the person or entity submitting such information, be used directly by such agency, any other Federal, State, or local authority, or any third party, in any civil action arising under Federal or State law if such information is submitted in good faith; (D) shall not, without the written consent of the person or entity submitting such information, be used or disclosed by any officer or employee of the United States for purposes other than the purposes of this subtitle, except ..." in certain enumerated situations.
7/15. The House Select Committee on Homeland Security held another hearing on HR 5005, the Homeland Security Act of 2002. Tom Ridge, head of the President's Office of Homeland Security, testified. Ridge addressed information security and the proposed Freedom of Information Act exemption in his prepared testimony.
Ridge stated that "The President's proposal would transfer to the new Department the National Infrastructure Protection Center of the FBI, the National Communications System of the Department of Defense, the Critical Infrastructure Assurance Office of the Department of Commerce, the Computer Security Division of the National Institute of Standards and Technology, the National Infrastructure Simulation and Analysis Center of the Department of Energy, and the Federal Computer Incident Response Center of the General Services Administration.
Ridge also addressed the proposed Freedom of Information Act exemption of information regarding critical infrastructures voluntarily shared with the federal government. This is contained in Section 204 of the HR 5005 as introduced.
Ridge stated in his prepared testimony that "In order to build a system capable of protecting the Nation's critical infrastructure, the federal government must be able to gather information related to operational capacities and vulnerabilities and share resulting assessments or analysis with not only the private sector but also state and local officials. This problem is not new. Congressman Davis, along with many of his peers, has been focused on this issue for some time. Last week the Government Reform and Oversight Committee approved an amendment that the Congressman submitted providing a limited exemption for information voluntarily submitted to the government related to critical infrastructure. This amendment recognizes the need for an exemption while ensuring that the federal government's regulatory and enforcement efforts are in no way undermined. The Administration supports the intent and purpose of this amendment."
The House Select Committee on Homeland Security is scheduled to hold its third hearing on Tuesday, July 16, at 10:00 AM.
7/10. The Center for Democracy and Technology (CDT), Consumers Union, and Public Knowledge sent a memorandum [13 pages in PDF] to the House Commerce Committee regarding the Broadcast Protection Discussion Group's (BPDG) Final Report on the protection of digital television, and the "broadcast flag" standard.
These groups concluded that "we believe that serious questions remain as to whether the broadcast flag proposal will be sufficiently effective. Congress should seek assurance that it will not have adverse consequences on consumers, including their ability to use their existing products, their ability to exercise legal and reasonably expected fair uses of content, and their access to future innovative technologies that might allow them to manipulate content in creative ways that are legal under copyright law."
7/15. The General Accounting Office (GAO) released a report [PDF] titled "FDIC Information Security: Improvements Made but Weaknesses Remain". This report on the Federal Deposit Insurance Corporation (FDIC) identifies "weaknesses in its information systems controls that affect the corporation's ability to safeguard electronic access to critical financial and other sensitive information. These weaknesses place critical FDIC financial and sensitive personnel and bank examination information at risk of unauthorized disclosure, critical financial operations at risk of disruption, and assets at risk of loss."
For example, the GAO report finds that the "FDIC did not adequately limit access to data and programs by controlling mainframe access authority, providing sufficient network security, or establishing a comprehensive program to monitor access activities."
7/15. The Securities and Exchange Commission's (SEC) Division of Corporation Finance published Staff Legal Bulletin No. 14A, which announces that the SEC has changed its position regarding the application of Exchange Act Rule 14a-8, the shareholder proposal rule, to equity compensation plans. This will increase the opportunity of shareholders to approve or reject equity compensation plans. See, SEC release.
7/15. President Bush gave a campaign speech in Birmingham, Alabama at a Bob Riley for Governor event. He also gave a speech at the University of Alabama at Birmingham. He addressed trade promotion authority at both events. He said in the university speech that "We're good at a lot things in America, and we ought to be selling our products all around the world. It's time for Congress to quit talking and start acting, and giving me trade promotion authority so we can open up more markets and more people can find work right here in America."
The House will meet at 9:00 AM for morning hour and 10:00 AM for legislative business.
9:30 - 10:30 AM. Department of Commerce (DOC) officials will hold a media briefing to preview the DOC's July 17 Digital Content and Rights Management roundtable, announce the DOC's September 19 Homeland Security Technology Expo, and announce the launch of a biotechnology industry survey. The participants will include Phil Bond (Under Secretary of Commerce for Technology), Benjamin Wu (Dep. Under Sec.), Bruce Mehlman (Asst. Sec.), and Chris Israel (Dep. Asst. Sec.). See, notice. Location: DOC, Room 4813, 14th and Constitution Ave., NW.
LOCATION CHANGE. 10:00 AM. The Senate Banking Committee will hold a hearing. Federal Reserve Board Chairman Alan Greenspan will deliver his semi annual report on monetary policy. See also, media advisory regarding procedures for covering this hearing. Press contact: Jesse Jacobs at 202 224-1654. Location: Room 216, Hart Building.
10:00 AM. The House Select Committee on Homeland Security will hold another hearing on HR 5005, the Homeland Security Act of 2002. See, notice. Location: Room 345 (Cannon Caucus Room), Cannon Building.
10:00 AM. The Senate Finance Committee will hold a hearing to examine homeland security and international trade issues. Location: Room 215, Dirksen Building.
2:00 PM. The Senate Judiciary Committee's Subcommittee on Administrative Oversight and the Courts will hold a hearing to examine the FBI's computer hardware problems. See, notice. Press contact: Mimi Devlin at 202 224-9437. Location: Room 226, Dirksen Building.
2:30 PM. The Senate Commerce Committee will hold a hearing on the nomination of Jonathan Adelstein to be a FCC Commissioner. Location: Room 253, Russell Building.
3:00 PM. The Senate Appropriations Committee's Subcommittee on Commerce, Justice, State, and the Judiciary will meet to mark up the appropriations bill for the Departments of Commerce, Justice, and State, the Judiciary, and related agencies. Location: Room S-128, Capitol Building.
3:00 PM. The Congressional Internet Caucus Advisory Committee, Transatlantic Policy Network, and European Internet Foundation will host two roundtable discussions data privacy (3:00 PM) and information security (4:00 PM). Location: Room 106, Dirksen Building.
5:00 PM. The The House Judiciary Committee's Subcommittee on Commercial and Administrative Law will hold a meeting to mark up HR 2526, the Internet Tax Fairness Act of 2001. Location: Room 2141, Rayburn Building.
Deadline to submit reply comments to the FCC regarding its Notice of Proposed Rulemaking regarding the consequences of the FCC's classification of cable modem service as an information service. This is CS Docket No. 02-52. See, FCC release [PDF] and notice in Federal Register.
9:00 AM. The Congressional Internet Caucus Advisory Committee, Transatlantic Policy Network, and European Internet Foundation will host roundtable discussions on intellectual property (9:00 AM) and broadband (10:00 AM). Location: Reserve Officers Assoc., 1st and Constitution, NE.
9:30 AM. The Senate Commerce Committee will hold a hearing on legislation to authorize funding for the FTC. FTC Commissioners Timothy Muris, Mozelle Thompson, Sheila Anthony, Orson Swindle, and Thomas Leary will testify. Location: Room 253, Russell Building.
10:00 AM. Federal Reserve Board Chairman Alan Greenspan will testify before the House Financial Services Committee. He will deliver his semi annual report on monetary policy. See, notice. Location: Room 2128, Rayburn Building.
10:00 AM. The House Judiciary Committee will meet to mark up several bills, including S 487, the Technology, Education, and Copyright Harmonization Act of 2001 (TEACH Act). Webcast. Press contact: Jeff Lungren or Terry Shawn at 202 225-2492. Location: Room 2141, Rayburn Building.
12:00 NOON. The Congressional Internet Caucus Advisory Committee will host a luncheon. The scheduled speakers include Richard Clarke (Special Advisor to the President for Cyberspace Security) and Kathleen Abernathy (FCC Commissioner). An RSVP is required to attend. Contact either rsvp @netcaucus.org or call Danielle at 202 638-4370. Location: Reserve Officers Assoc., 1st and Constitution, NE.
1:00 - 4:00 PM. The Department of Commerce's Technology Administration will host a workshop on digital entertainment and its availability to consumers. Phil Bond (Under Secretary of Commerce for Technology) and James Rogan (Director of the USPTO) will co-host the event. For more information, contact Chris Israel, Deputy Assistant Secretary for Technology Policy, at 202 482-5687. See, notice in the Federal Register. Location: Room 4830, Hoover Building, 1401 Constitution Ave., NW.
Extended deadline to submit reply comments to the FCC in response to its notice of proposed rulemaking regarding its unbundling analysis under § 251 of the Communications Act and the identification of specific unbundling requirements for incumbent local exchange carriers. See, May 29 order [PDF] extending deadline from June 5 to July 17. See also, notice in the Federal Register. This is CC Docket No. 01-338.
9:30 AM. The House Commerce Committee's Subcommittee on Commerce, Trade, and Consumer Protection will hold a hearing titled "Are All Online Travel Sites Good for the Consumer: An Examination of Supplier Owned Online Travel Sites". See, notice. Webcast. Press contact: Ken Johnson or Jon Tripp at 202 225-5735. Location: Room 2123, Rayburn Building.
9:30 AM. The Senate Special Committee on Aging will hold a hearing on identify theft. Howard Beales, Director of the FTC's Bureau of Consumer Protection, will testify. Location: Room 628, Dirksen Building.
10:00 AM. The House Judiciary Committee's Subcommittee on Courts, the Internet, and Intellectual Property will hold an oversight hearing titled "The U.S. Patent and Trademark Office: Fee Schedule Adjustment and Agency Reform". Location: Room 2141, Rayburn Building.
10:00 AM. The Senate Judiciary Committee will hold an executive business meeting. The agenda includes S 2395, a bill regarding counterfeiting and copyright piracy. See, amendment in the nature of a substitute released on July 11. Press contact: Mimi Devlin at 202 224-9437. Location: Room 226, Dirksen Building.
10:00 AM. The Senate Banking Committee will hold a hearing on the nominations of Paul Atkins and Harvey Goldschmid to be Commissioners of the SEC. Location: Room 538, Dirksen Building.
12:00 NOON - 2:00 PM. The National Youth Science Camp and Entrust will host a luncheon and panel discussion titled the "Role of Technology in Establishing Homeland Security". Former NATO Commander Gen. Wesley Clark and Sen. Robert Byrd (D-WV) are the scheduled keynote speakers. Lunch will be served. Interested media should RSVP by contacting Caroline Dietz at 202 715-1532 or caroline.dietz @dittus.com. Location: Room 325 (Senate Caucus Room), Russell Building.
2:00 PM. The Senate Judiciary Committee will hold a hearing on pending nominations. Press contact: Mimi Devlin at 202 224-9437. Location: Room 226, Dirksen Building.
2:30 PM. The Senate Commerce Committee will hold a hearing on the nominations of Kathie Olsen and Richard Russell to be Associate Directors of the Office of Science and Technology Policy. Press contact: Andy Davis at 202 224-6654. Location: Room 253, Russell Building.
Deadline to submit comments to the FCC in response to its request for comments on the FCC's Office of Plans and Policy's (OPP) Working Paper No. 35 [PDF], titled "Horizontal Concentration in the Cable Television Industry: An Experimental Analysis". See, Public Notice [PDF].
The House will meet at 9:00 AM for legislative business. No votes expected after 6:00 PM.
12:30 PM. SEC Chairman Harvey Pitt will give a luncheon speech. Location: Ballroom, National Press Club, 529 14th St. NW, 13th Floor.
Deadline to submit applications to the Department of Education for Community Technology Centers Program grants for FY2002 to create or expand community technology centers that will provide disadvantaged residents of economically distressed urban and rural communities with access to information technology and related training. See, notice in the Federal Register.
Deadline to submit comments to the State Department regarding the effects of the privatization of Inmarsat and INTELSAT on U.S. industry, jobs, and industry access to the to the global marketplace. See, notice in the Federal Register.
Day one of a two day seminar hosted by the American Intellectual Property Law Association on the Patent Cooperation Treaty. See, online brochure [PDF]. Location: Crystal Gateway Marriott, Arlington, VA.
2:00 - 4:00 PM. The FCC's Advisory Committee for the 2003 World Radiocommunication Conference will hold a meeting. See, notice in Federal Register. Location: FCC, 6th Floor South Conference Room (6-B516), 445 12th Street, SW.
Deadline to submit comments to the FCC in response to its Notice of Proposed Rule Making "regarding the sunset of the statutory requirements under section 272 imposed on Bell Operating Companies when they provide in-region, interLATA services and seeks comment on whether, and if so, under what conditions, the structural and nondiscrimination safeguards established in section 272 should be extended by the Commission either generally or with respect to specific states." See, notice in the Federal Register.

References: § 1030
 § 2702
 § 2512
 § 1030
 § 2703
 § 3125
 § 3125
 § 251