[Congressional Record Volume 144, Number 15 (Wednesday, February 25, 1998)]
[Extensions of Remarks]
[Pages E223-E224]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       CONGRESS AND THE INTERNET

                                 ______
                                 

                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                      Wednesday, February 25, 1998

  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, February 18, 1998 into the Congressional Record.

                       Congress and the Internet

       The Internet is transforming American society. It is having 
     a profound effect on our government institutions and our 
     economy and how we communicate with each other and with the 
     rest of the world. About 40 million people used the Internet 
     in 1996, and that number is expected to rise to about 200 
     million by 1999.
       The Internet is a global network of computers linked by 
     phone and cable lines. It began in 1969 as a Defense 
     Department initiative to link a handful of universities, 
     research laboratories and military bases, and has now become 
     ubiquitous. Individuals can access the Internet from personal 
     computers at home or at work, at schools or in the library. 
     The Internet is a means of disseminating information and, 
     increasingly, a way to conduct business.
       Congress is struggling to define what role government 
     should play in the Internet. The Internet is a wide-open 
     forum with few rules and regulations. It is not owned by 
     anyone, and it is not confined by geographical borders. This 
     very openness is the great strength of the Internet, 
     facilitating the free exchange of information and ideas 
     around the world. It is also a source of concern. For 
     example, some of the most profitable web sites on the 
     Internet are devoted to gambling and pornography. Some in 
     Congress have urged aggressive regulation of the Internet, 
     while others have urged minimal government involvement.


                        Government and politics

       The Internet has had a dramatic effect on how the average 
     citizen interacts with the federal government. First, 
     individuals now have greater access to information about 
     government. Federal agencies have web sites which usually 
     describe key programs and initiatives and help citizens get 
     answers to commonly asked questions, such as how to apply for 
     a job or how to get benefits. Second, the Internet has made 
     it easier for citizens to communicate with their elected 
     representatives. About 4000 people have contacted my web site 
     in the last year, and many constituents now send e-mail 
     messages to my office. Third, the Internet provides a wide-
     range of fora for citizens to debate and discuss political 
     issues, from 3-mails and chat rooms to ideologically-oriented 
     web sites.
       The Internet has also revolutionized media coverage of 
     Washington. When I first came to Congress in the mid-1960s, 
     most Americans got their news on current events from the 
     morning paper and the evening news. Today, media coverage is 
     almost non-stop, and the Internet has contributed to this 
     trend. For example, the Monica Lewinsky story first broke on 
     a web site, and several news outlets have provided round-the-
     clock reporting on the scandal from their web sites. Some 
     would say the Internet is feeding the public's appetite for 
     information. Others would argue that it has lowered media 
     standards, opening the floodgates to unrestrained 
     speculation.


                      Areas of possible regulation

       Congress will focus its legislative efforts on the Internet 
     in four basic areas. First, it will consider various consumer 
     protection bills, including measures to restrict junk e-mail, 
     protect the privacy of personal information in government 
     databases, and, most importantly, limit pornography and 
     gambling on the Internet. Congress passed legislation in 1996 
     making it a crime to knowingly send or display indecent 
     material over the Internet, but the Supreme Court invalidated 
     the law on free speech grounds. Supporters say restrictions 
     are necessary to limit access by minors to such materials. 
     Opponents respond that parents, not the government, should 
     control what their children see, that most Internet 
     providers, such as America Online and Prodigy, already give 
     parents and schools the tools to screen out offensive 
     materials, and that regulating pornography will be difficult 
     because U.S. laws don't reach web sites established overseas. 
     We want to protect children from inappropriate material, but 
     we also want to protect the exploding commercial potential of 
     the Internet.
       Second, Congress will debate measures relating to taxation 
     of Internet commerce. One recent study estimated that the 
     value of goods and services traded over the Internet will 
     grow from $8 billion in 1997 to $327 billion in 2002. Those 
     figures do not include consumers who are increasingly 
     shopping on the Internet as they become more comfortable with 
     the technology and more aware of the protections against 
     credit card fraud. Many state and local governments, 
     concerned about the shift of commerce to the Internet, want 
     to impose taxes on Internet transactions. The challenge is 
     determining which jurisdiction should levy the taxes, or 
     whether state and local governments should be allowed to tax 
     Internet commerce at all.
       Third, Congress will consider bills involving the export of 
     encryption, which is data scrambling technology used to 
     prevent unauthorized access to electronic data on the 
     Internet. Encryption, for example, may be used to secure 
     credit card purchases over the Internet, or to restrict 
     access to certain government web sites. The encryption issue 
     is very contentious. Bills have been introduced to ease 
     restrictions on the export of encryption products so that 
     U.S. manufacturers are on a level playing field with their 
     overseas competitors. The White House, however, has opposed 
     relaxing export controls because of concerns that widespread 
     use of sophisticated encryption will hamper law enforcement 
     and intelligence gathering.
       Fourth, Congress is reviewing the issue of trademark 
     protection. Currently, the government has contracted with a 
     private entity to assign web site names. Problems arise when 
     entrepreneurs grab an address that is clearly identified with 
     a well-known brand name or even with a governmental entity. 
     Some argue the federal government should plan an enhanced 
     role in resolving trademark disputes, while others favor 
     referring such disputes to an international organization 
     because the Internet transcends national boundaries.


                               Conclusion

       The federal government has a legitimate role to play in 
     Internet governance, particularly where interstate commerce, 
     trade and law enforcement are involved. I do believe, 
     however, that Congress should proceed with caution as it 
     debates measures to regulate the Internet. I favor a minimum 
     of regulation, but there are some things, like child 
     molesters who get information from the Internet, that simply 
     cannot be ignored. The

[[Page E224]]

     Internet is a powerful, global technology which is changing 
     our society in ways we don't fully understand, and raising 
     complex legal and policy issues we have rarely, if ever, 
     confronted. My sense is that Members of Congress should 
     probably spend more time trying to learn about the complex 
     and technical issues surrounding the Internet before trying 
     to regulate it.

     

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