[Congressional Record Volume 148, Number 28 (Wednesday, March 13, 2002)]
[Senate]
[Pages S1800-S1805]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          HIGH-TECH TASK FORCE

  Mr. ALLEN. Mr. President, I rise this morning to speak about the 
Senate Republican high-tech task force. Today is an important day for 
our high-tech task force, as we are unveiling our policy agenda and 
principles for the upcoming session and the rest of the year.
  First, I express my gratitude to Senator Reid and Senator Daschle for 
allowing us this half hour of time to address our colleagues on the 
very important issue of technology and the policy issues that we have 
faced, are facing, and will face this year.
  The purpose of the high-tech task force is to advise Republican 
leadership and, hopefully, others on the other side of the aisle on 
issues important to the technology community. We look at ourselves as a 
portal to the technology innovators and entrepreneurs to get their 
ideas and messages to the Senate so that we are well informed as to the 
impact of any potential changes in laws, or there may be laws that are 
outdated and need to be updated or upgraded.
  The advancement of technology in the United States is important. It 
is important for our quality of life, for our competitiveness as a 
nation. It is also very important for providing good-paying jobs for 
Americans.
  Technology improvements benefit our lives and our businesses and our 
competitiveness in many ways. For example, in manufacturing, it allows 
manufacturers to manufacture whatever the good or product is, more 
efficiently, with greater quality, with less waste, and fewer toxins. 
In a distribution center, if you went to a Dollar Tree or a Family 
Dollar or Dollar General distribution center, you would see how they 
use technology to pick different items for their various stores and 
then loading them on trucks.
  Technological improvements help our communications systems within our 
country. It also helps education opportunities, life sciences, and 
biological advancements that are allowing people to lead better, 
healthier, longer lives. It can help in law enforcement and 
coordination of law enforcement efforts at the State, local, and 
national level. And it can provide for a better transportation system 
with smart roads and smart cars, and the concept of telecommunicating, 
teleworking, allowing people to have a better quality of life while not 
having to fight traffic every day and have more time with their 
families.
  It improves in so many ways our quality of life, our efficiency, and 
also our environment. On the high-tech task force, in addition to 
myself, I am joined on the task force by Senators Allard, Bennett, 
Brownback, Burns, Collins, Kay Bailey Hutchison, Ensign, Sessions, and 
Gordon Smith, as well as ex officio members who are the ranking members 
of the various important committees that deal with technology, 
including the Armed Services Committee with John Warner, Banking 
Committee, Phil Gramm; Senator McCain of Commerce; Senator Grassley of 
Finance, and Senator Orrin Hatch, a great leader of our Judiciary 
Committee.

  We had many accomplishments last year. The education bill was an 
important one. No child left behind. Education is the key--making sure 
we have a capable population in our country so youngsters can seize the 
opportunities not just of the silicon dominion of Virginia, but 
technology jobs all across the country. That was a very important bill. 
The clean 2-year extension of the Internet access tax moratorium was 
important. I don't think there should be access taxes on the Internet, 
but we were able to get a 2-year extension to prevent Internet taxes, 
which would only exacerbate the digital divide.
  We also passed the Export Administration Act in the Senate. We 
updated those laws so computers can be sold from this country as 
opposed to other countries getting them from France, Germany, or Japan. 
We can compete. The House has a different view.
  There was a proposed merger of ASML, a Dutch company, with SBG,

[[Page S1801]]

which is a Silicon Valley group. The importance of this was helping 
with the next generation of microchips. ASML has the extreme 
ultraviolet lithography tools which are important for the smaller 
geometries on microchips.
  We were able to advocate appropriations of additional funds for 
justice for anti-piracy prosecution. Intellectual property rights is 
very important, and we need to enforce those. We also turned back 
efforts to change the current encryption export rules--again, very 
important.
  Now, for the upcoming session, one of the successes was the 3-year, 
30-percent bonus depreciation measure, which was finally passed last 
Friday as part of the economic stimulus bill. That is important for all 
businesses, but especially the technology community so businesses can 
upgrade their technology and other equipment. Senator Gordon Smith was 
the lead for our high-tech task force in getting that accomplishment, 
which will help stimulate the economy, save and create more jobs.
  Now, the agenda is really one based on principles. The principles we 
have this year are the same as last. We have added a few issues that 
have arisen recently. We want a Federal Tax Code that is appropriate 
for the 21st century. That means several different things. We want to, 
No. 1, continue working to make the research and development tax credit 
permanent.
  Secondly, we want to accelerate and reform the depreciation schedules 
for technology equipment. We also want to encourage capital formation 
for small technology companies. And also of recent importance we are 
going to work to preserve the current tax treatment for stock options.
  Just yesterday, the high-tech task force urged Leaders Daschle and 
Lott to oppose any effort to consider S. 1940, which is a bill to 
require above-the-line expensing of stock options. Not to get into all 
the minutia of tax laws, but the fact is, passage of such legislation 
would dramatically deter companies from providing rank and file 
employees with stock options, and they are an important part of 
compensation. That proposal will certainly be harmful for technology 
companies.
  We also are going to work to enhance free trade, in that it is 
important for opening up fair and free trade. We will open up new 
markets for our technology and our services. One must recognize that, 
while computers are fairly prevalent in this country, they are not all 
that prevalent in the rest of the world. Nearly half of the people in 
the world have yet to make their first telephone call. Only about 2 
percent of the world's population has a computer. That tells us there 
are great opportunities for our technologies, as well as construction 
equipment, and so forth, all over the world; and tearing down barriers 
will help our jobs in this country and our technological advancements 
to continue. Also, it would not only benefit our country, but it would 
increase the standard of living for those who tear down those barriers 
so that their citizenry can have the opportunities of advanced 
technology for their quality of life, a better environment, and more 
opportunities. So we are going to continue to advocate trade promotion 
authority. We will also continue working to protect Internet security, 
and we will continue combating terrorism.

  To that end, we are going to seek advancement of the Bennett-Kyl 
legislation to allow information sharing between private companies and 
the Government by codifying a limited Freedom of Information Act 
exemption.
  We are going to support the Bush administration's budget, as far as 
funding for cyber-security issues. We are going to continue working to 
safeguard copyrights in the digital age. That is very important. The 
private sector needs to work together with a variety of companies to do 
it, rather than worry about an inept Federal Government dictating 
standards in that regard.
  We are going to continue promoting education and technology in a 
variety of ways. There are some good ideas that we are supporting--
particularly, the President in his effort on education, proposing that 
families of students who are in failing schools get a tax credit. A 
$2,500 tax credit could go toward purchasing computers, peripherals, 
books, and also tuition. Personally, I am for a tax credit focusing on 
computers and peripherals, educational software and tutoring. It should 
not just be for kids in failing schools, but for all schools, in order 
to bridge the digital divide.
  We are going to work to expand broadband technologies. The Patent and 
Trademark Office funding is important. Those fees ought to go to the 
Patent and Trademark Office and should not be diverted to other 
efforts. We want to keep government out of competition with e-commerce 
businesses.
  Digital decency. We are for it. We want the private sector to look at 
ways to put in a filter so people can enjoy the Internet as they see 
fit, as opposed to the government censoring it.
  In the area of legal reform, there are several areas--especially 
class actions. We have these class action lawsuits filed all over the 
country. The diversity of that jurisdiction, at the option of the 
defendant, ought to be more easily removed to Federal court to get a 
better, more expedited and fair judgment.
  Also, spectrum reform is very important, particularly in rural areas. 
I am going to yield in a minute to the Senator from Montana.
  Before I do that, I ask unanimous consent that endorsements of these 
policy principles and ideas by the Information Technology Association 
of America, Information Technology Industry Council, the Business 
Software Alliances, the Electronic Industries Alliance, TechNet, and 
ACT be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                 ITAA Lauds High Tech Task Force Agenda

       Arlington, VA.--The information Technology Association of 
     America (ITTA) today praised the Senate Republican High Tech 
     Task Force as the group kicked off its 2002 agenda on Capitol 
     Hill.
       ``We look forward to working with the Republican High Tech 
     Task Force as well as Democrats in the Senate to achieve 
     sound policy that will allow the high tech industry to once 
     again become the engine of our U.S. economy,'' said ITTA 
     President Harris N. Miller, adding ``Last week's passage of 
     the Economic Stimulus legislation on a bipartisan basis 
     showed that the HTTF, under Senator Allen's leadership, 
     reaching across the aisle can accomplish great objectives for 
     the IT industry.''
       ``In 2001, we worked on a bipartisan basis to support 
     passage of key tech related bills such as the extension of 
     the Internet tax moratorium and education reform,'' Miller 
     continued. ``This year, Trade Promotion Authority and 
     improving information security are some of ITAA's top 
     priorities, so we are gratified to see them also topping the 
     HTTF agenda.''
       The Information Technology Association of America (ITTA) 
     provides global public policy, business networking, and 
     national leadership to promote the continued rapid growth of 
     the IT industry. ITAA consists of over 500 corporate members 
     throughout the U.S., and a global network of 47 countries' IT 
     associates. The Association plays the leading role in issues 
     of IT industry concern including information security, taxes 
     and finance policy, digital intellectual property protection, 
     telecommunications competition, workforce and education, 
     immigration, online privacy and consumer protection, 
     government IT procurement, human resources and e-commerce 
     policy. ITAA members range from the smallest IT start-ups to 
     industry leaders in the Internet, software, IT services, ASP, 
     digital content, systems integration, telecommunications, and 
     enterprise solution fields.
                                  ____


 ITI Applauds Senate Republican Task Force Agenda, Recent Legislative 
                            Accomplishments

       Washington, DC.--The Information Technology Industry 
     Council (ITI) applauds the Senate Republican High-Tech Task 
     Force for its 2002 agenda and its work securing passage of 
     key legislative initiatives during the past year.
       ``We are pleased to support the Task Force's agenda and 
     would like to thank them for their work last year to secure 
     passage of legislation vital to the IT industry,'' said Rhett 
     Dawson, President of ITI.
       ``The 30 percent bonus depreciation provision in the 
     stimulus bill, Senate passage of education reform 
     legislation, and the two-year moratorium on Internet access 
     taxes were key victories for the IT industry. The work of the 
     Task Force was key to achieving these goals. We look forward 
     to a productive 2002 in which the Senate passes Trade 
     Promotion Authority and other important pieces of 
     legislation.''
       ITI represents the leading U.S. providers of information 
     technology products and services. ITI member companies employ 
     more than 1 million people in the United States and exceeded 
     $668 billion in worldwide revenues in 2002.
       The High-Tech Voting Guide is used to ITI to measure 
     Members of Congress' support for

[[Page S1802]]

     the information technology industry and policies that ensure 
     the success of the digital economy. At the end of the 107th 
     Congress, key votes will be compiled and analyzed to assign a 
     ``score'' to every Member of Congress.
       ITI member companies include Agilent Technologies, 
     Amazon.com, AOL Time Warner, Apple Computer, Canon U.S.A., 
     Cisco, Compaq, Corning, Dell, Eastman Kodak, EMC, Hewlett-
     Packard, IBM, Intel, Lexmark, Microsoft, Motorola, National 
     Semiconductor, NCR, Panasonic, Siebel, Siemens, SGI, Sony, 
     StorageTek, Sun Microsystems, Symbol Technologies, Tektronix 
     and Unisys.
                                  ____


   Business Software Alliance Applauds Aggressive Agenda Proposed by 
                 Senate Republican High Tech Task Force

       Washington, DC, Mar. 13.--The Business Software Alliance 
     (BSA) today commended the Senate Republican High Tech Task 
     Force following its release of an aggressive agenda for the 
     108th Congress aimed at benefiting the technology industry.
       ``The technology industry serves as a primary engine for 
     the U.S. economy, and the Senate Republican High Tech Task 
     Force deserves significant credit in laying out a clear, pro-
     growth agenda,'' said Robert Holleyman. BSA's President and 
     CEO. ``As the nation moves toward a more positive economic 
     outlook, it is more important than ever to focus Congress' 
     attention on legislative initiatives that will secure 
     sustained growth, create jobs, enforce strong intellectual 
     property protection, promote strong security and spur 
     innovation. The agenda put forth today mirrors many of BSA's 
     own policy objectives and serves as a coherent blueprint to 
     achieve our shared goals.''
       ``The Senate Republican High Tech Task Force has served as 
     a vocal and influential legislative champion on policy issues 
     of critical importance to the high tech industry. We look 
     forward to continuing the partnership we have established 
     with the Task Force and making these goals legislative 
     realities,'' continued Holleyman.
       Last year, BSA joined the Republican High Tech Task Force 
     in promoting number of successful legislative programs. Key 
     legislative achievements included:
       An appropriations increase for anti-piracy prosecutions;
       The three-year, 30-percent accelerated depreciation;
       A two-year extension of the Internet Tax moratortium;
       President Bush's Education Reform Act; and
       Maintaining current encryption export rules.
                                  ____


 EIA Applauds 2001 Accomplishments of Senate Republican High-Tech Task 
    Force; Looks Forward to Continued Legislative Successes in 2002

       Arlington, VA.--Dave McCurdy, President of the Electronic 
     Industries Alliance (EIA) today thanked the Senate Republican 
     High-Tech Task Force for their 2001 legislative 
     accomplishments and applauded the rollout of their 2002 
     agenda.
       McCurdy said: ``Thank Senate Republican High-Tech Task 
     Force has worked closely with the high-tech industry to 
     outline technology priorities during each legislative 
     session. Their involvement and advocacy of issues critical to 
     our industry resulted in major legislative accomplishments in 
     2001, including Senate passage of the Export Authorization 
     Administration Act and passage of a 3-year, 30 percent 
     accelerated depreciation provision.
       ``We look forward to the continued success of the High Tech 
     Task Force. EIA will work hard to help secure successful 
     completion of their 2002 agenda, which mirrors many of our 
     priority issues, including passage of Trade Promotion 
     Authority.
       ``Granting Trade Promotion Authority has consistently been 
     a priority for the technology industry. In 2000, more than 
     one-third of what the U.S. electronics industry produced was 
     exported overseas--over $200 billion in goods. This means 
     more than one-third of the 1.8 million employees who work for 
     U.S. electronics companies depend on exports for their jobs. 
     International trade and access to foreign markets are 
     critical to our continued success. We look forward to working 
     with the High Tech Task Force in ensuring the quick passage 
     of Trade Promotion Authority in 2002.''
       The Electronic Industries Alliance (EIA) is a national 
     trade organization that includes the full spectrum of U.S. 
     manufacturers, representing more than 80% of the $550 billion 
     electronics industry. The Alliance is a partnership of 
     electronic and high tech association and companies whose 
     mission is promoting the market development and 
     competitiveness of the U.S. high tech industry through 
     domestic and international policy efforts. EIA, headquartered 
     in Arlington, Virginia, is comprised of more than 2,300 
     member companies whose products and services range from the 
     smallest electronic components to the most complex systems, 
     used by defense, space and industry, including the full range 
     of consumer electronic products. The industry provides more 
     than two million jobs for American workers.
                                  ____


 TechNet Applauds Senate Republican High Tech Task Force's Agenda for 
                                  2002

       Palo Alto, CA.--The Technology Network (TechNet), a 
     national network of high-tech and bio-tech CEOs, today 
     praised the Senate Republican High Tech Task Force for 
     releasing an agenda that is long on innovation and economic 
     growth and short on government regulation.
       ``The Republican High Tech Task Force is an important 
     portal for our industry, and TechNet in particular,'' said 
     Rick White, CEO of TechNet. ``The agenda they have laid out 
     is consistent with our efforts to spur broadband deployment, 
     expand free trade, and minimize the government's involvement 
     in the technology industry.''
       ``In particular, we appreciate the leadership the Task 
     Force has shown in opposing any effort to require companies 
     to expense stock options,'' continued White. ``This issue is 
     vital to the long term success and stability of our 
     industry.''
       TechNet represents 235 technology and bio-tech companies 
     nationwide. The group is focused on four key issues: making 
     broadband ubiquitous by the end of the decade; passing bi-
     partisan trade promotion authority legislation; strengthening 
     our education system; and keeping stock options free from 
     being expensed as cash.
       Last week TechNet brought 30 CEOs to Washington, DC for a 
     series of meetings with congressional leaders. The group 
     spent time with Senator George Allen and other members of the 
     Senate Republican High Tech Task Force--discussing issues key 
     to the growth of the technology industry.
                                  ____


 ACT Commends Work of Senate Republican High Tech Task Force on Behalf 
                   of Entrepreneurial Tech Companies

       Washington, DC.--On behalf of its three thousand small- and 
     mid-size high tech member companies, the Association for 
     Competitive Technology (ACT) today commended the work of the 
     Senate Republican High Tech Task Force (HTTF) in the 107th 
     Congress and applauded its commitment to key issues for this 
     session.
       With the technology industry teetering on the edge of 
     recession, there were several critical policy decisions for 
     small entrepreneurial technology companies in 2001. 
     Thankfully, the HTTF was hard at work on behalf of the 
     industry. The HTTF was instrumental in securing a two year 
     extension to Internet tax ban, the Export Authorization 
     Administration Act and a new 3 year, 30 percent accelerated 
     depreciation schedule for technology equipment. The HTTF was 
     also an important force in thwarting efforts to restrict 
     export rules for encryption that would have been disastrous 
     to software companies, e-commerce and privacy.
       The HTTF technology agenda announced today demonstrates 
     that their continued commitment to providing entrepreneurial 
     technology companies with the ability to succeed. ACT is 
     especially excited by HTTF's goals for issues such as 
     protecting privacy, educating a workforce for the 21st 
     century, expanding free trade and updating our nation's tax 
     code to reflect the realities of the New Economy.
       ``The Republican Senate High Tech Task Force has been a 
     powerful ally for entrepreneurial technology companies. ACT 
     looks forward to working the issues that will be critical to 
     ensuring the continued success of the American technology 
     industry,'' said ACT President Jonathan Zuck.
       ACT is a national education and advocacy group for the 
     technology industry. Representing mostly small- and mid-size 
     companies, ACT is the industry's strongest voice when it 
     comes to preserving competition and innovation in the high 
     tech sector. ACT's membership includes businesses involved in 
     all aspects of the IT sector including computer software and 
     hardware development, IT consulting and training, dot-coms.

  Mr. ALLEN. I now yield to the Senator from Montana, Mr. Burns, who 
has been a strong and knowledgeable advocate and leader of improving 
technology. The Commonwealth of Virginia has rural areas, but not as 
many as Montana. One of the ways that rural areas, whether out West, or 
in the South, or in Hawaii, can benefit from technology and 
communication is with leadership of people such as Senator Burns.
  I yield to Senator Burns.
  The ACTING PRESIDENT pro tempore. The distinguished Senator from 
Montana is recognized.
  Mr. BURNS. I thank my good friend from Virginia. The Senator from 
Virginia has rural areas; we have frontier areas. That kind of draws a 
distinction. I think the Senator from Virginia has picked up a big part 
of the responsibility of furthering the agenda of high technology 
because our States do have a lot of similarity, such as in distance 
learning and telemedicine. These areas are isolated by mountains, where 
communications and the free flow of information have eluded people. Of 
course, with that in mind, I think he has picked up on what he wants to 
do with his State of Virginia, so that not only Northern Virginia 
benefits from research and development but the advancement of the 
information age, and also that the rest of the State can participate in 
it as well.
  If you look at my State of Montana, you see we have similar 
challenges ahead of us. I congratulate Senator

[[Page S1803]]

Allen for his fine work. He has done a marvelous job chairing this 
high-tech task force. Under his leadership, we were able to aid in some 
victories last year, including the extension of the Internet tax 
moratorium for 2 years and the inclusion of an enhanced depreciation 
provision in the stimulus package that the President just signed.
  Senator Allen went over the list that pretty well sets our 
priorities, and not necessarily in that order; they are all very 
important.
  I am a member of the Internet caucus, which is a bipartisan group. 
This year in our opening reception we had over 40 exhibitors. Senator 
Allen came. Approximately 1,000 people attended that reception. The 
free flow of information has become very important.
  I want to go over a couple of points. I gave a lot of speeches before 
I ever came to the Senate saying there have been three interventions 
that have changed our whole way of life. It has really brought the size 
of our planet down considerably. First is the jet engine, second is the 
transistor, and third is the silicon chip. In a matter of hours, we can 
be anywhere in the world. We can in 5 seconds exchange ideas visually 
and audibly anywhere in the world, whether it be land line or through 
space. The silicon chip has sped up the way we handle information. It 
has changed our life forever. This planet is smaller because of those 
inventions.
  Look at what has happened since. As the information age came upon us, 
we realized as far back as 1989 and 1990, when I first came to the 
Senate, that the policies that guided the infrastructure for that flow 
of information were passed in 1934. We soon understood that some policy 
changes were going to have to take place before we could see gigantic 
moves or an extension of the way we were to deal with the free flow of 
information. As a result, it only took 6 years to pass the Telco Act of 
1996 because we were trying to set policy for technologies that went 
way beyond what was thought in 1935.
  The free flow of information is democracy. We all base our decisions 
on the information we get. As long as it is a free flow of information, 
a free flow of ideas, our democracy and our Republic will remain strong 
and people will participate in the political arena. Freedom equals 
opportunity, but it is also held together by an ingredient called 
responsibility.
  We were not finished looking at the policies before we got the 
Internet, this great infrastructure of information. We have to take a 
look at the insurance to be sure we have sound organizations as the 
gatekeepers.
  Specifically, before we can look at the complex area of comprehensive 
spectrum reform, we should keep in mind the vital nature of spectrum to 
those on the front line of homeland defense, our first responders: The 
police, fire, medical, public health, and other emergency response 
agencies.
  We passed a bill in the last Congress that is revolutionizing the 
cell phone industry. For the first time, we made 911 the national 
emergency number. Now, with new technology, one can dial 911 on a cell 
phone and reach the nearest first responder. Before, in the cell phone 
industry, if one dialed 911, they were apt to get anybody anywhere. The 
calls now go into the nearest communications center that can handle an 
emergency.
  Another topic that will prove of utmost importance to critical 
infrastructure is the operation of a shadowy organization known as the 
Internet Corporation for Names and Numbers, commonly known as ICANN. 
The formation of ICANN originated with the so-called green and white 
papers of the Clinton administration in 1998 that proposed the 
delegation of control of the domain name system from the Commerce 
Department to an entirely new organization which would be a new, not-
for-profit corporation formed by private sector Internet stakeholders.

  The Clinton administration further proposed that the U.S. Government 
should end its role in the Internet numbers and names address system. 
Soon thereafter, ICANN was created and the Commerce Department began to 
delegate the functions of the Internet domain name system to it.
  In the eyes of many critics, this delegation has happened far too 
swiftly. While ICANN is supposed to function by consensus of the 
Internet community, its operation has often been controversial and 
shrouded in mystery. Recently, even the President of ICANN, Stuart 
Lynn, admitted publicly the organization is not working and needs to 
undergo comprehensive structural reform because it is losing sight of 
effectiveness in accomplishing our real mission.
  Taking into account that the ICANN mission is ensuring the stable and 
secure management of the Internet domain system, I am extremely 
concerned at these developments which are so critical to our national 
security.
  In another area, to make the Internet more responsible and make it 
respond to the users, to give the users confidence in this system, we 
have to look at spamming. Spamming is the receiving of unwanted junk 
mail. I do not know of a time on my address anyway that I have received 
more spam than I am right now. It is a lot more than when I was in the 
U.S. Marine Corps, I can tell you that. The irresponsible use of 
spamming by marketers cannot be tolerated. To ensure the free flow of 
information and confidence in this system, we have to take a look at 
privacy.
  Those are the areas we should be focusing on now in order to let this 
great technology be a workhorse for us.
  I thank the chairman of the high-tech task force. I applaud him for 
his leadership in taking on this great responsibility. I yield the 
floor.
  The ACTING PRESIDENT pro tempore. The Senator from Virginia is 
recognized.
  Mr. ALLEN. Mr. President, I thank the Senator from Montana for his 
eloquent remarks, his strong leadership, and his understanding that 
with freedom come innovation and improvements in our lives.
  I now yield to Senator Bennett of Utah who was chairman of this task 
force previous to me but is still a leader on our task force and 
someone who is greatly respected in the area of technology and, as I 
mentioned earlier, he has provided the key leadership in the Senate on 
cyber-security.
  I yield to the Senator from Utah, Mr. Bennett.
  The ACTING PRESIDENT pro tempore. The Senator from Utah is recognized 
for 1 minute.
  Mr. BENNETT. I thank the Chair.
  Mr. President, my plea is very simple and can be stated in 1 minute: 
We must, in the words of Abraham Lincoln, think anew and act anew, 
recognizing that in the cyber-age, many of the attitudes we have had 
about warfare, about vulnerability, about opportunity have to be 
thought through entirely differently.
  If we can understand that and put aside some of our old prejudices 
and old ideas about technology and about regulation, we will be on the 
road to the prosperity and security we need. If we cling to the old 
ideas, the old paradigms with respect to information sharing and 
antitrust activities, we are in for serious trouble.
  So in 1 minute, that is my message. Let us think anew, let us act 
anew, and let us recognize the technological age has changed 
everything.
  I yield the floor.
  Mr. ENSIGN. Mr. President. I rise today to briefly speak about the 
importance of technology to our economy and our way of life.
  Just think about how technology has changed our lives over the past 
few decades. Not so long ago, documents could only be sent through the 
mail, computers were enormous metal boxes with limited functionality, 
and the Internet--although it had been invented--was neither user 
friendly nor accessible. When I was growing up, watching television 
meant the handful of network channels we could get from an antenna on 
the roof; and when our car broke down we'd have to hitch hike to the 
next gas station or pay phone to call for help. It's hard to believe 
that for my three young children, those are things of the past. They're 
used to cell phones and cable TV.
  We now live in a world where technology represents one of the largest 
and fastest growing sectors of our economy. Technology employs millions 
of Americans and was largely responsible for the tremendous economic 
expansion from 1994 to 2000. Technology certainly helped fuel the 
growth of my State's economy. According to the U.S. Department of 
Commerce, Nevada is second in the Nation for net creation of high-tech 
businesses. And I strongly encourage that growth because those

[[Page S1804]]

businesses paid my constituents over $1.3 billion in wages.
  Advances in technology have made our personal lives easier and our 
professional lives more productive. Speed bumps in the communication 
process have been eliminated and replaced with wireless phones and e-
mail. Advances in technology and the Internet now allow me to visit 
regularly with my constituents in Nevada while I am working in 
Washington through a real-time video teleconferencing network. 
Constituents of mine back in Nevada are able to listen to my remarks 
here on the Senate floor by logging on to my website.
  Indeed, 10 years ago I would have never imagined technological 
advances such as these, and I am certain that there will be more 
unforeseen breakthroughs in the coming years.
  Although new technologies greatly benefit American society, new 
issues have arisen for legislators to address in order for America to 
remain a world leader in technological innovation. We must grapple with 
broadband deployment, copyright protection and enhanced wireless 
services if we want America to have a competitive advantage.
  High-speed Internet access, or broadband, will drive the economy of 
tomorrow and every American household should have access to it at 
reasonable rates. I believe that broadband Internet will serve as the 
foundation for technological and communications advances in the future. 
According to Commerce Secretary Evans, broadband is vital to America's 
economy and will produce over 1 million new American jobs and an 
additional $50 billion a year for our economy. The importance of this 
technology cannot be underestimated, and surprisingly few Americans 
have access to this service or subscribe to it due to its high cost and 
its lack of desirable content. While there are a number of legislative 
proposals currently before the U.S. Senate which aim to increase 
broadband availability, this issue is far from resolved.

  I am working with my colleagues on the Senate Commerce Committee to 
address this important issue in a way that will level the regulatory 
playing field for service providers, create incentives for private 
investment in the networks, and preserve competition in the 
marketplace. In short, instead of rolling out the red tape on private 
industry, we should roll out the red carpet to allow competition in the 
fairest manner possible.
  As more Americans subscribe to broadband, private industry must work 
cooperatively to ensure that copyrighted material is protected from 
piracy. While America leads the world in software, entertainment, and 
other kinds of intellectual property innovation, piracy is on the rise 
and has taken a serious toll on our economy. In 2000, piracy cost 
America an estimated 107,000 information technology jobs, $5.3 billion 
in wages and $1.8 billion in U.S. tax revenue. It is clear that the 
practice of piracy must be stopped. If not, the American economy will 
continue to suffer and we will lag behind other nations in technology 
innovations. We must aggressively protect copyrighted works--both at 
home and abroad--that will drive the economy of tomorrow. The Commerce 
Committee recently held a hearing on this important issue, and I am 
aggressively working with my colleagues to stop piracy and bring a new 
level of protection to copyrighted works.
  Finally, Mr. President, we must encourage further advances in 
wireless technology. In the last 10 years, wireless phone use has 
skyrocketed, and over 132 million Americans now have a cell phone. 
Prices have fallen and service quality has improved. Wireless has 
expanded beyond voice to include wireless e-mail and text messaging, 
like by Blackberry, which allows me to send and receive e-mail when I 
am on the road.
  Overseas, next generation wireless technology, such as wireless video 
and Internet, have been deployed along with many other exciting new 
services. Unfortunately, the United States has begun to lag behind 
other nations in offering advanced wireless services. A number of 
issues--such as spectrum management, spectrum harmonization, and 
wireless security--demand our immediate attention in order to bring 
these exciting new services home. As a member of the Senate Commerce 
Committee and Co-chair of the Internet Caucus Wireless Task Force, I 
will continue to work with my colleagues in the Senate to reestablish 
the United States as the global leader in wireless technology.
  In conclusion, we have accomplished much over the past year on many 
technology issues. The Republican High Tech Task Force has been an 
effective voice for technology on Capitol Hill. Members of the Task 
Force have helped secure additional funding for the Patent and 
Trademark Office, encourage greater copyright enforcement within the 
Department of Justice, and provide tax incentives to stimulate business 
investment in technology infrastructure. I look forward to another 
productive year.
  Mr. SMITH of Oregon. Mr. President, as a member of the Senate High 
Tech Task Force, HTTF, I am proud to speak about the importance of the 
hi-tech sector, a sector of our economy that has in the past been such 
an effective engine of growth in my State of Oregon.
  And it is this engine of growth that needs strengthening in order to 
help the Oregon economy grow.
  I am so pleased that the President signed into law last weekend an 
economic stimulus package that included both an extension of 
unemployment benefits and the bonus depreciation changes that I and 
other members of the Task Force worked so hard to pass in the Senate.
  Oregon, as many of you know, had an unemployment rate of 8 percent in 
January, well above the national average.
  The stimulus package included a much-needed unemployment benefit 
extension, one that Oregon had already qualified for because of its 
high unemployment rate.
  But this stimulus package also included real economic stimulus that I 
believe will boost the Oregon economy.
  Both this year and last I have had the privilege of introducing bonus 
depreciation amendments to various economic stimulus bills in an 
attempt to actually stimulate business investment.
  I did this because the current Tax Code penalized businesses, 
especially the hi-tech sector, by forcing them to choose between either 
retaining outdated equipment to fully recover their costs or foregoing 
full recovery in order to stay abreast of the latest development in the 
hi-tech fields.
  Businessmen, farmers, the hi-tech industry all benefit from 
accelerated depreciation, and the impact on this Nation's economy will 
provide greater opportunities for jobs in my home State of Oregon where 
the hi-tech sector is so critical to economic recovery.
  Now we must take the next step in bolstering the hi-tech community by 
making permanent the R&D tax credit.
  The R&D tax credit encourages investment in basic research that over 
the long term can lead to the development of new, cheaper, and better 
technology products and services.
  Research and development is essential for long-term economic growth. 
Innovations in science and technology have fueled the massive economic 
expansion we witnessed over the course of the 20th century.
  These advancement have improved the standard of living for nearly 
every American.
  Simply put, the research tax credit is an investment in economic 
growth, new jobs, and important new products and processes.
  The R&D credit must be made permanent: This credit was originally 
enacted in 1981, and has been temporarily extended many times. 
Permanent extension of long overdue.
  Because this vital credit isn't permanent, it offers business less 
value than it should. Business, unlike Congress, must plan and budget 
in a multiyear process. Scientific enterprise does not fit neatly into 
calender or fiscal years.
  Research and development projects typically take a number of years, 
and may even last longer than a decade.
  As our business leaders plan these projects, they need to know 
whether or not they can count on this tax credit.
  Current uncertainty surrounding the credit has induced businesses to 
allocate significantly less to research than they otherwise would if 
they knew the tax credit would be available in future years.
  This uncertainty undermines the entire purpose of the credit.

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  Investment in R&D is important because it spurs innovation and 
economic growth: Information technology was responsible for more than 
one-third of real economic growth in the late 1990s.
  Information technology industries account for more than $500 billion 
of the annual U.S. economy. R&D is widely seen as a cornerstone of 
technological innovations, which in turn serves as a primary engine of 
long-term economic growth.
  This tax credit will result in higher wages. Findings from a study 
conducted by Coopers & Lybrand show that workers in every State will 
benefit from higher wages if the research credit is made permanent.
  Payroll increases as a result of gains in productivity stemming from 
the credit have been estimated to exceed $60 billion over the next 12 
years.
  Furthermore, greater productivity from additional research and 
development will increase overall economic growth in every State in the 
Union. Research and development is essential for long-term economic 
growth.
  The tax credit is cost-effective: The R&D tax credit appears to be a 
cost-effective policy instrument for increasing business R&D 
investment. Some recent studies suggest that one dollar of the credit's 
revenue cost leads to a one dollar increase in business R&D spending.
  Bonus depreciation and the R&D tax credit are but two of many issues 
that interest both the hi-tech sector and this Senator.
  While I am proud of the achievement with the bonus depreciation I 
will continue to work with hi-tech companies on the R&D tax credit and 
many other issues to keep our economy running strong, across this 
Nation and especially in my State of Oregon.

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