27 February 1998
Source: http://www.access.gpo.gov/su_docs/aces/aaces002.html

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[Congressional Record: February 25, 1998 (Extensions)]
[Page E223-E224]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
[DOCID:cr25fe98-15]


                       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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