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ADMINISTRATION: Investigating The Investigators

September 21, 2007






  Bill To Put Drug Data Online Is Cleared
  Poker Players Place A Bet On Lobbying
  Giuliani Talks Tech In Northern Virginia
  South Korea Deal May Boost Tech Exports
  A Day To Recognize The Internet Globally
  New Bills Target Television Regulations
 E-briefs




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Health
Congress Clears Bill To Put Drug Research Online
by Aliya Sternstein

     Congress this week cleared to President Bush a bill that is supposed to give the public better and quicker access to information on drug safety and drug development.
     The action partly stems from the recall of the anti-inflammatory drug Vioxx after heart attack risks were revealed. The industry then faced calls for greater transparency in clinical trials. Legislators spent two-and-a-half years debating the measure, H.R. 3580, which is grounded upon active surveillance of drugs already on the market.
     Under the legislation, passed on a 405-7 vote in the House on Wednesday and by voice vote in the Senate on Thursday, more drug reviews will be made publicly available on Food and Drug Administration Web sites.
     "[W]e need not only brilliant researchers to develop the drugs of tomorrow, but also strong and vigilant watchdogs for public health to guarantee that new drugs and medical devices are safe and beneficial, and that they actually reach the patients who urgently need them," Health, Education, Labor and Pensions Committee Chairman Edward Kennedy, D-Mass., said in a floor speech Friday. "Congress has ample power to restore the luster the FDA has lost in recent years, and this bipartisan, consensus bill can do the job."
     The bill would mandate a public, online registry of clinical drug trials and their results. The early information about potential new cures and treatments is intended to help patients, providers and researchers make better healthcare decisions. Congress also started to address food-supply problems by including language that requires the FDA to report human and pet-food safety issues online, Kennedy stated.
     Michael Enzi of Wyoming, the HELP committee's top Republican, said the legislation "gives the FDA new authority to take swift, appropriate and decisive action to ensure patient safety and protect consumers when new information comes to light to expose unexpected risks."
     The final language does not include a proposal by Byron Dorgan, D-N.D., that would have let individuals and pharmacies import FDA-approved drugs from FDA-registered foreign manufacturers. The axed provision also would have established a Web site listing the contact information of registered exporters whom the FDA has determined to be safe.
     "The consumers are at status quo right now," Dorgan spokesman Barry Piatt said.
     FDA Commissioner Andrew von Eschenbach said he was "particularly pleased" that Congress finished reauthorizing programs that would collect fees from drug and medical-device manufacturers for reviews and safety evaluations. The programs account for nearly one quarter of FDA's annual budget.
     Scott Wallace, president and CEO of the National Alliance for Health Information Technology, said, "The bill isn't, in and of itself, a total solution to the problems of information access by consumers, but it is a step."
     He said the bill gets at the first building block of a useful system: the basic information being available. "We are hopeful that the increased resources available under this bill will allow the agency to move more quickly into the electronic communications era," Wallace said.

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Lobbying
Poker Players Place A Bet On Washington Lobbying
by Michael Martinez

     Poker players and online gambling enthusiasts have established a home base inside the Beltway.
     The Poker Players Alliance, a nonprofit that defends the rights of poker players, moved from San Francisco to Washington last month in order to increase its visibility and effectiveness on Capitol Hill. The group has been a vocal opponent of federal efforts to restrict online gambling.
     Last year, President Bush signed into law a measure banning financial firms from processing payments to e-gambling sites. The Justice Department also has pursued several high-profile cases against offshore gambling businesses in recent years.
     The poker alliance was among the groups that actively lobbied against the e-gambling ban. In a telephone interview, Executive Director John Pappas said he hopes an international trade dispute over e-gambling and recent research about the effects of online wagering will encourage lawmakers to rethink the statute.
     The tiny island nation of Antigua and Barbuda, which depends economically on e-gambling, has successfully challenged the United States before the World Trade Organization and is seeking billions of dollars in sanctions. Earlier this week, the British Gambling Commission released a study refuting some of the claims used by supporters of the U.S. ban about the addictiveness and health risks associated with online gambling.
     Legislation already has been introduced to repeal the U.S. ban on Internet gambling. A bill introduced by Financial Services Committee Chairman Barney Frank, D-Mass., instead would legalize and regulate the online gambling industry.
     Poker players are trying to rally support for Frank's proposal, which has a few dozen co-sponsors. The alliance has loaded more than 100 videos about various gambling issues to YouTube and is planning to hold a policy conference in Washington next month to spotlight its agenda. Lawmakers, lobbyists and professional poker players have been invited.
     The group also is planning a voter-registration drive for the 2008 election.
     Pappas acknowledged that it will be difficult to move the measure through Congress this session. But he said the WTO case may help sway some lawmakers. He added that the alliance got a boost earlier this year when former Sen. Alfonse D'Amato, R-N.Y., became chairman.
     "Congress works in mysterious ways," Pappas said. "What we're trying to do is generate a critical mass where Congress would have to act."
     Pappas hinted that the alliance may establish a political action committee to further enhance its influence. He said the organization is currently focusing on educating members on who its "champions" on Capitol Hill are.
     "If we had a dollar from each of our members we'd have one of the strongest PACs in Washington," he said. "It's something we're strongly considering."

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E-Government
Giuliani Touts Anti-Crime Tools, Net Tax Moratorium
by Heather Greenfield

     RESTON, Va. -- Former New York Mayor Rudy Giuliani told nearly 750 technology executives at a Northern Virginia Technology Council breakfast here that he relied on better technology to help pinpoint crime statistics and cut crime rates.
     Giuliani, a Republican presidential contender, said the tech industry has a role to play now in helping secure the nation's borders with a "technological fence," along with motion-detecting equipment, heat-seeking equipment and tamper-proof identification cards. He said only after illegal immigration is stopped can the country begin improving policies for legal immigration.
     "We should open up the visas and make it easier for people to get visas," Giuliani said, adding that the nation needs workers throughout the economy, not just the high-skilled ones sought by the tech industry.
     Giuliani generated the most applause during his speech by saying he is in favor of extending the Internet tax moratorium, which expires Nov. 1. "When we raise taxes," he said, "money moves somewhere else because money is so much more mobile than 20 years ago."
     After the speech, Michael Petricone, a spokesman for the Consumer Electronics Association, said Giuliani has a feel for the tech industry's priorities -- particularly the Internet tax moratorium. "That's key for the tech industry and the expansion of broadband," Petricone said. He said no one can seriously discuss U.S. competitiveness without ensuring that the ban is permanent.
     "I'm happy with what he said about technology and integrating more technology into government," Yuctan Hodge of General Dynamics said of Giuliani. But others said they wished to hear more about specific policies and less about Giuliani's mayoral record.
     Noting that he cannot afford insurance for his workers now, the owner of a small tech company with five employees asked Giuliani if he has a plan to expand health insurance coverage.
     Giuliani said he believes the answer is for individuals to buy their own insurance and allow $15,000 of that cost to be tax exempt. He said employers could pay workers a little more so they could afford it, and workers would pay more of their own money, too. He said employers could help steer workers to insurance policies "based on what you're paying them."
     A Northrop Grumman executive asked about how to replace science, technology, engineering, and mathematics workers when half of those serving the military or civilian government are eligible to retire in eight years.
     Giuliani said there should be "tremendous emphasis" on STEM education, but he does not believe the government can mandate more science or math instruction.
     Another executive asked Giuliani what he would do about the alternative minimum tax, which seeks to ensure that taxpayers with multiple write-offs pay at least some taxes. The AMT now catches an estimated 4 million upper middle-class taxpayers.
     Giuliani said he would cap it so inflation would not snare more people. But he said he would not eliminate it -- unless he could get tax breaks like a corporate tax cut and making permanent the tax cuts enacted during the Bush administration.



Trade
U.S.-South Korea Deal Could Increase Tech Exports
by Winter Casey

     A trade agreement with South Korea likely would increase U.S. exports of electronics to the Asian nation, according to a U.S. International Trade Commission analysis released Thursday.
     "Although many electronic products, such as semiconductors, telecommunications equipment, and computer equipment, currently receive duty-free access to the Korean market under the World Trade Organization's Information Technology Agreement, they are also expected to benefit " from non-tariff measures in the U.S.-South Korea deal, the ITC said.
     U.S. suppliers of electronics, machinery and transportation equipment likely would benefit from the immediate or phased elimination of Korean tariffs and from language in areas such as intellectual property rights and technical barriers to trade, according to the analysis.
     The deal is predicted to "affect the U.S.-Korea trade and investment relationship substantially, including bilateral trade in goods and services, procedures governing trade and investment, and the regulatory environment," the commission added.
     The commission further predicts that U.S. gross domestic product would increase by $10.1 billion to $11.9 billion, and more than 82 percent of U.S. tariff lines and more than 80 percent of Korean tariff lines would have free rates of duty for each other.
     U.S. law requires the ITC to prepare reports on the impact of proposed trade deals on the U.S. economy. U.S. Trade Representative Susan Schwab said the U.S.-South Korea analysis reinforces her belief that the deal would be "the most commercially significant free-trade agreement the United States has concluded in over 15 years -- and that Congress should act to approve it."
     U.S. and Korean officials signed the agreement June 30.
     In addition to South Korea, the Bush administration is pushing Congress to approve trade deals with Colombia, Panama and Peru. On Friday, the Senate Finance Committee voted for the Peru agreement. Former members of Congress, ambassadors, trade advisers and Cabinet officials have signed a letter to congressional Democrats in support of the Latin American pacts.
     "[I]t is time to get behind pending agreements with Colombia, Panama and Peru," the letter says. "It would be the height of irony were we to talk of 'losing' Latin America while refusing to take actions that would directly support fundamental relationships and interests in the region."
     The letter adds, "Far from being 'job-killing,' these trade agreements would open markets wider to U.S. goods and services and therefore support jobs in the United States."
     On Thursday, Commerce Secretary Carlos Gutierrez said in a speech in Miami that congressional approval of the Latin American deals would "open markets with about 75 million consumers and a GDP of almost $246 billion."

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Culture
Enthusiasts To Celebrate Benefits Of The Internet
by Winter Casey

     For the second year in a row, a law professor at Yeshiva University has coordinated efforts worldwide to celebrate what she calls a "global Earth Day for the Internet."
     The idea behind One Web Day on Saturday is "to encourage people to think of themselves as responsible for the Internet, and to take good and visible actions," according to coordinator Susan Crawford. She wants people to celebrate the positive impact of the Internet and also to consider the problems of online access and information flow.
     One Web Day boasts some big-name supporters, including Craig Newmark, the founder of the online classifieds site Craigslist, and Tim Berners-Lee, who is credited with inventing the World Wide Web.
     "One Web Day reminds us that the Net really is a democratizing medium, that everyone gets a chance to participate," Newmark said in a statement. Berners-Lee said the day is about how people should "constantly work to make more, better, cleaner, stronger, deeper interoperability across the planet."
     Speakers at a New York One Web Day event are scheduled to include: Andrew Baron of the online video site Rocketboom; Samuel Klein of One Laptop Per Child, a project that aims to distribute computers in poor nations; Dana Spiegel of NYCWireless; and Jimmy Wales, the founder of the online encyclopedia Wikipedia.
     The Internet Society also is backing One Web Day. The nonprofit said it has used its position to support celebratory events around the world. In Colombia the group said "public kiosks and workshops on basic Internet access will be delivered to people of all ages and economic status to introduce them to the Internet."
     In Benin, Africa, the society "will offer free public access to the Internet and participate in an open debate about developing access to the Internet on a national television show." Chapters of the society also have planned One Web Day events in Belgium, Ethiopia, Israel and Italy, among other locations.
     The Shrewsbury Public Library in Massachusetts plans to hose three free workshops about online databases, how to create and maintain a blog, and how to register for a new e-mail address using a free, Web-based service.
     The One Web Day "site suggests ways in which we can remember and celebrate how we found jobs or friends online," and "recommends celebrating by teaching an older relative or acquaintance how to blog, or use instant-messaging or even send an e-mail," according to the Center for Democracy and Technology.
     "We can't afford to take the remarkable freedom and innovation fostered by the Internet for granted," the blog continues.



On The Hill
Bills Target 'Indecency,' Programming Regulations
by Theresa Poulson

     A lawmaker this week drew fire from free-speech advocates after introducing legislation aimed at regulating "indecent" content in broadcasting. The bill was one of several technology-related measures filed this week.
     The bill, H.R. 355, would require the FCC to enforce its policy that the broadcasting of a single word or image may be considered "indecent." "As the father of five sons, I have a vested interest in what broadcasters present over the public airwaves," Rep. Charles (Chip) Pickering, R-Miss., said of his measure. "We do not want our children to grow up with the mindset that certain behavior and language is OK."
     The American Civil Liberties Union issued a statement that said such attempts to regulate TV programming treads on the First Amendment. "It is not up to our government to determine what is and is not 'decent'; that is a job for parents," Caroline Fredrickson, director of the ACLU's Washington legislative office, said in the statement.
     The Senate Commerce Committee approved a similar measure in July.
     The debate comes as the FCC's indecency policy is being questioned in courts. A federal appeals court in June rejected the rule that fines broadcasters for "fleeting expletives." A separate federal court earlier this month heard arguments in CBS' appeal of a fine for fleeting nudity at the 2004 Super Bowl half-time show.
     Another new House bill, H.R. 3602, would, among other things, repeal the FCC's "must carry" rules, which mandate that cable providers carry certain local and public television stations within a service area.
     And a third House measure, H.R. 3598, aims to prohibit the regulation of broadcasting activities by the Broadcasting Board of Governors, an independent entity responsible for all government content and government-sponsored international programming.
     Other tech-related bills introduced this week were:
     -- H.R. 3541, which would make the listing of telephone numbers on the federal "do not call" registry permanent (see separate summary);
     -- H.R. 3578, which aims to improve the management, coordination and effectiveness of domestic and international intellectual property enforcement;
     -- H.R. 3577, which would direct the attorney general to provide grants for Internet safety education programs;
     -- H.R. 3565, which would require that commercial mobile radio service be treated as a provider of interstate, inter-exchange telecommunications services in regards to toll charges;
     -- H.R. 3627, which would promote the deployment and adoption of telecom services and information technologies;
     -- H.R. 3612, which would prohibit pre-emption of state and local laws regarding employment verification; and H.R. 3549, which would withdraw federal funds from states and localities that interfere with enforcement of immigration law;
     -- H.R. 3631, which would authorize a trust fund to establish a National Center for Learning Science and Technology;
     -- S. 2058, which seeks to close the "Enron loophole" that exempts large stock traders from regulation concerning electronic trades of energy commodities;
     -- And H.R. 3567, which would expand opportunities for investments in small businesses.

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Today's Feature: Executive Summary
The European Union Court of First Instance this week ruled that Microsoft abused its dominant position in the computer market by refusing to disclose information about its products to competing companies. Every Friday, read the Executive Summary by K. Daniel Glover.



E-briefs



Antitrust:   Google has asked the European Union for permission to acquire the online advertising tracker DoubleClick, a $3.1 billion deal that already has stirred concern about the control it would give Google over Internet advertising. AP reports that rival Yahoo immediately said the deal raises important questions about the future of advertising on the Web. Microsoft said its views have not changed since April, when it warned that the deal "raised serious competition and privacy concerns." Google compiles data on the search terms that specific users enter. Privacy advocates say that sharing the information -- which might reduce antitrust concerns about the DoubleClick deal -- could violate consumers' rights. U.S. advocates have asked the FTC to review the acquisition, and a Senate Judiciary subcommittee hearing on the matter is planned for Sept. 27.

Privacy:   The names, Social Security numbers and mortgage information of thousands of people have been put onto the popular Lime Wire peer-to-peer network, the Dow Jones News Service reported on Friday. The files were leaked by an employee of Citigroup's ABN Amro Mortgage Group, according to Tiversa, a data breach prevention firm. On Thursday night, the information was offline, Tiversa said, but could re-emerge depending on how far it has spread. "For an identity thief, a find like [this] is a gold mine," Tiversa CEO Robert Boback told the newswire. "This would provide years of content for them to perfect their crimes." A Citigroup spokesman said the company was investigating the incident.

Television:   An Iowa judge has overturned a portion of a state law permitting city governments to assess fees of up to 5 percent on cable television connections. AP reports that Polk County Judge Michael Huppert said in a ruling filed Sept. 13 that the Legislature violated the state and federal constitutional rights of a woman who sued the city of Des Moines, claiming its cable franchise fees are illegal. Huppert said a law passed earlier this year that permits city governments to assess the fee and makes the law retroactive violates the plaintiff's constitutional right of due process. He said only two types of retroactive laws in Iowa can pass constitutional muster -- emergency legislation and laws passed to cure errors in earlier laws. According to Huppert, cable subscribers cannot seek damages for franchise fees paid after May 29, when the law became effective. They can, however, seek relief for fees paid before that date, he said.

Civil Liberties:   The watchdog group Public Citizen on Friday filed documents in a Pennsylvania court, arguing that a city councilwoman should not be able to compel the disclosure of the identities of people who have been criticizing her anonymously on an online message board. Scranton City Council President Judy Gatelli is trying to unmask the identities of message-board users she believes said defamatory things about her. Public Citizen is arguing that Gatelli is an elected official and what was said about her was fair comment. "While some posts are scathing, they are scathing opinions, which are protected speech," Public Citizen attorney Paul Alan Levy said in a release. "This is especially true for elected public officials. Harry Truman said it best: 'If you can't stand the heat, get out of the kitchen.'"

Budget:   House Homeland Security Committee Chairman Bennie Thompson on Thursday asked the Homeland Security Department's inspector general to investigate how much the department has spent on conferences and events during the last three years. In a letter to Inspector General Richard Skinner, the Mississippi Democrat said his request was prompted by a recent audit from the Justice Department's inspector general into its conference expenditures. That report found that the department spent about $46 million on conferences and travel during fiscal 2006. The report concluded that some expenses, while allowed by law, appeared to be extravagant and that Justice may have inappropriately charged and retained registration fees for one of its conferences. "Because of the important mission of the department and the need to prudently spend federal taxpayer funds, neither waste nor extravagance by the department in performance of its critical role should be accepted or condoned," Thompson wrote.

Crime:   A student at the Massachusetts Institute of Technology who was wearing what turned out to be a fake bomb was arrested at gunpoint Friday at Logan International Airport in Boston, officials said. AP reports that a state police officer said Star Simpson had a computer circuit board and wiring in plain view over a black hooded sweatshirt she was wearing. Simpson, who later claimed that the display was artwork, was charged with disturbing the peace and possessing a hoax device. The city was the focus of a major security scare Jan. 31 when bomb squads were deployed to investigate dozens of battery-powered devices that turned out to be a promotion for a Turner Broadcasting System cartoon. Turner agreed to pay the city $2 million as a result of the incident. In April, the Senate Judiciary Committee approved legislation that would strengthen laws and penalties against terrorism-related hoaxers.




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