GOP Senate Promises Tech Policy Shift; Republicans Realign Senate Tech Priorities - Column

Byline: Brian Krebs

The resurgence of a Republican majority in the U.S. Senate heralds pro-business changes in several key technology policy battles in Congress, including online piracy, cybersecurity, broadband deregulation and Internet privacy, tech experts said.

Technology leaders also said legislation to create a Department of Homeland Security -- which contains a series of online security initiatives -- will be the top goal of a Republican Senate.

The bill includes measures that would hold federal agencies to tougher computer security standards and encourage businesses to share information on computer vulnerabilities with the federal government.

The information technology industry also sees the proposed department as a procurement gold mine, as the massive new agency would be in the market for many technology products.

Democrats have held up a vote on the measure because they say it denies federal workers some of the union rights they now enjoy.

IT leaders also welcome the power shift for its promise of tax reform and stronger business incentives.

"The most prominent effect (of the GOP takeover) will be a greater chance of stimulating investment through research and development extensions and tax cuts," said Rhett Dawson, president of the Information Technology Industry Council.

Last month, the council released a report card showing Senate Republicans voted with the tech industry's stance nearly 85 percent of the time, compared to 65 percent for Senate Democrats.

Joe Rubin, director of congressional affairs for the U.S. Chamber of Commerce, said Republican control of the Senate could translate into "a great deal more capital for tech companies."

"On tech-specific items -- from homeland security to privacy, we think this is going to have a pretty dramatic impact," Rubin said.

Observers caution that Senate Republican lawmakers still must cooperate with Democrats to get most things done. Under Senate rules, at least 60 votes are required to overcome filibusters and other stalling tactics that can derail bills before they get a vote.

"We'll still have challenges, but hopefully this transition will provide the extra momentum to get this department and other important measures approved," said Robert Holleyman, president of the Business Software Alliance.

Democrats will control the lame-duck session beginning next week, which will prove crucial because Congress still must pass most of the appropriations bills that keep the government running. Republicans still could take over during the lame duck, however, if Missouri certifies Senator-elect Jim Talent (R), or if Minnesota officials install Senator-elect Norm Coleman (R) to fill the seat of the late Sen. Paul Wellstone (D). If Democrats maintain control through the remainder of the session, the homeland security bill could be delayed until January.

Changes at the committee chairman level also are expected to change the Senate's technology agenda. This would be most apparent in the Senate Commerce Committee, chaired by Ernest "Fritz" Hollings (D-S.C.). A champion of broadband, privacy and anti-piracy bills that emphasize federal spending, he has annoyed Republican committee members by keeping similar GOP-sponsored alternatives off the table.

Hollings' most controversial proposal -- backed heavily by the entertainment industry -- would require PC and consumer electronics makers to embed copy-protection technology into their products.

Sen. John McCain (R-Ariz.) -- with his own more moderate online privacy and broadband deployment legislation -- will become chairman in January, however. McCain also has been openly critical of the Hollings anti-piracy bill.

"The election results certainly put a wooden stake through the heart of that vampire," the ITI's Dawson said of the Hollings bill.

Hollings also has delayed consideration of a broadband deregulation bill passed by the House earlier this year. That measure -- sponsored by Reps. W.J. "Billy" Tauzin (R-La.) and John D. Dingell (D-Mich.) -- would make it easier for Bell telephone companies to enter the high-speed broadband market.

Observers say that the Tauzin-Dingell bill faces an uphill battle in the 108th Congress anyway, in part because it would have to be reintroduced and passed by both houses. The measure has also lost momentum because many lawmakers and the White House expect the Federal Communications Commission to vote before the end of the year on a proposal that would accomplish a similar result.

In addition, Bush administration support for the Tauzin-Dingell bill has been tepid at best.

"My observation of this White House is that they are very wary of food fights, and a lot of people view much of what happens in telecom as a food fight," said former McCain counsel John Timmons, now principal for the Cormac Group, which has lobbied against the Tauzin-Dingell bill.

"It's hard for me to imagine the administration getting behind telecom legislation that does not have broad and deep support," Timmons said.

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