The Senate is poised this week to debate a revised version of the comprehensive cybersecurity bill (S 3414) supported by Senate leadership and the White House, but several industry groups remain strongly opposed to the legislation. Groups including the U.S. Chamber of Commerce and IBM have weighed in against the latest draft, arguing its voluntary security standards for critical infrastructure providers would create a back door to mandatory security regulations. The Chamber expressed concern about the bill's "name-and-shame" provision, which would compel companies to publicly disclose when they suffer a cyberattack. The White House proposed a similar approach to ensure compliance in its original cybersecurity legislative proposal released last year.
We expect debate on the bill to proceed later today; the Senate voted 84-11 for cloture on Thursday. Majority Leader Harry Reid, D-Nev., has promised an open amendment process for the cybersecurity bill, which means the debate will likely by prolonged. Talks are continuing between the sponsors of the legislation and Republicans led by Sen. John McCain of Arizona, who have promised to offer their alternate bill (S 3342) as a substitute amendment. If the two sides are able to settle their differences over security standards and which agency should be in charge of cybersecurity, then the Senate could finally pass a bill this week. Doing so would be a feather in the cap of Sen. Joe Lieberman, I-Conn., a longtime champion of cybersecurity legislation who is set to retire after the fall election. But whether it would spur the House to action remains very much in doubt. Stay tuned for updates.
Small Business, Conservatives Oppose Online Sales Tax: The push for Internet sales tax legislation has been gaining momentum recently, but small-business advocates and anti-tax conservatives remain firmly opposed. The Senate Commerce Committee will debate a bill on Wednesday (S 1832) that would allow states to tax online retailers located outside their borders. The cash-strapped states are eager to tap into a new potential stream of revenue, which would include exemptions for small businesses with less than $500,000 in annual revenue. A companion measure in the House (HR 3179) would raise that threshold to $1 million in revenue. But success is not guaranteed, partly because the opposition cuts across traditional interests and party lines. Sen. Ron Wyden, D-Ore., has said he opposes efforts to compel small online retailers to remit tax on behalf of customers. eBay, which has led the opposition to the tax proposals, and has convinced lawmakers from its home state of California from both parties to oppose the bill. With both the supporters and opposition still so fractured, it's still to early to predict whether the effort will be successful in this session of Congress. High-Tech Visa Bill Stalls: The tech-worker visa legislation championed by House Judiciary chairman Lamar Smith, R-Texas, has stalled after talks between Senate Democrats and House Republicans broke down over provisions regarding family visas. The bill had been eagerly anticipated by tech companies, which have consistently pushed Congress to allow more foreign scientists and engineers into the country to help fill the industry's numerous job openings. The bill would have transferred 55,000 green cards from the visa lottery program to foreign students that earn graduate degrees in STEM fields from American universities. But Democrats insisted on language that would reduce the wait time for relatives of current visa holders to move to the U.S. and work. House Republicans balked, concerned about an influx of green card applicants into the country. The talks appear shelved until next year at the earliest. Apple and Samsung Go to Trial Over Patent Dispute: Apple and Samsung will head to court in San Jose, Calif., this week to sort out a dispute over smartphone patents that will be closely watched by the tech community. The two-year battle between Apple and rival smartphone makers is a symptom of the growing patent wars in Silicon Valley, where tech titans fight over the patent portfolios of formerly formidable companies. Smartphone in particular are problematic, as they can often incorporate thousands of separate patents in a single product.