To:         Activists
     From:       webmaster@cdt.org
     Subject:    Policy Post 5.14 -- Encryption Reform Bill Ready for House Action

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     C D T   P O L I C Y   P O S T
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     A BRIEFING ON PUBLIC POLICY ISSUES
     AFFECTING CIVIL LIBERTIES ONLINE
     from
     THE CENTER FOR DEMOCRACY AND TECHNOLOGY
     ***********************************************************************
     Volume 5, Number 14      July 26, 1999
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     CONTENTS:
     (1) Encryption Reform Bill Ready for House Action in September
     (2) Summary of Recent Crypto Developments
     (3) Crypto Adversaries Will Use August to Get Their Message Across
     (4) Subscription Information
     (5) About the Center for Democracy and Technology

     ** This document may be redistributed freely with this banner intact **
     Excerpts may be re-posted with permission of ari@cdt.org
     This document is also available at:
     http://www.cdt.org/publications/pp_5.14.html
     _______________________________________________________________________
     (1) ENCRYPTION REFORM BILL READY FOR HOUSE ACTION IN SEPTEMBER

     Five Committees in the House of Represenatives have completed consideration 
     of H.R. 850, the Security and Freedom through Encryption (SAFE) Act, which 
     would lift most export controls on strong encryption.  The Committee action 
     sets the stage for a debate and vote by the full House on a crucial issue 
     affecting privacy and security on the Internet.

     Each of the five Committees approved a different version of the bill: three 
     left it essentially intact, while two adopted gutting amendments.  It is 
     now up to the Rules Committee, in consultation with the House leadership, 
     the chairmen of the five Committees, and the Act's primary co-sponsors, to 
     decide how to structure consideration of the bill by the full House, 
     probably sometime in September after the August recess.

     On the House floor, it is likely that proponents of the bill will offer a 
     "managers' amendment" which will combine many of the smaller changes to the 
     bill approved by the various Committees that do not affect its fundamental 
     reform of export controls on encryption.  Opponents of the bill will in all 
     likelihood be allowed to offer one or more amendments, similar to the 
     gutting amendments approved by the anti-reform Committees, that would 
     preserve the current export controls (and may even be worse than the status 
     quo).

     In Spetember, encryption legislation will face its most important test as 
     opponents are expected to mount a full court press against export relief.  
     To find out what you can do now, and to sign up for Action Alerts that will 
     keep you abreast of breaking developments, go to CDT's Action Page at 
     http://www.cdt.org/action.

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     (2) SUMMARY OF RECENT CRYPTO DEVELOPMENTS

     Here is a brief overview of events in the House this year:

     * In March, the House Judiciary Committee approved the SAFE Act without 
     amendment.  As introduced and reported by Judiciary, SAFE included an 
     objectionable provision creating a new crime for the knowing and willful 
     use of encryption to conceal evidence of a crime.  On balance, however, CDT 
     believes that the SAFE bill as approved by the Judiciary Committee would 
     represent a net improvement for security and privacy online.  For details 
     on the Judiciary markup, see http://www.cdt.org/publications/pp_5.12.html 

     * On June 23, the Commerce Committee reported SAFE favorably but voted to 
     attach several amendments to the bill, including a second, even more 
     troubling new federal crime, proposed by Rep. Stearns (R-FL), requiring the 
     production of decryption keys or other forms of decryption assistance when 
     presented with a court order. http://www.cdt.org/crypto/legis_106/SAFE/stearns.html  This
     amendment raises signficant privacy and due process 
     concerns, for it would leave encryption users open to prosecution without 
     clear guidelines for compliance. Three minor amendments sponsored by Reps. 
     Oxley and Wilson were adopted, all relating to national security.

     * On July 13, the House International Relations Committee approved SAFE by 
     a 33 to 5 vote.  Chairman Benjamin A. Gilman (R-NY) and Rep. Howard Berman 
     (D-CA) offered a series of weakening amendments, some of which would have 
     seriously gutted the bill's export control liberalization. After 
     substantial debate, the gutting amendments were rejected and seven 
     amendments were adopted that left the bill's export reforms largely intact. 
     A PDF version of the Committee report, including the text of the Act as 
     amended, is available at http://www.cdt.org/crypto/legis_106/SAFE

     * As expected, the House Intelligence Committee charted a radically 
     different course on encryption export policy. In a closed door session on 
     July 15, the Committee adopted an "amendment in the nature of a 
     substitute," a completely new version of SAFE that would continue most 
     export controls.  In a victory for privacy, the Committee's version of the 
     bill did not try to mandate key recovery. However, the amendment included 
     extensive provisions requiring the disclosure of plaintext or decryption 
     assistance.

     * On July 21, in a 47-6 vote, the Armed Services Committee adopted an 
     amendment that would effectively gut the SAFE Act by giving the president 
     unrestricted authority to deny encryption exports and to dictate the level 
     of encryption eligible for license exceptions. The amendment also would 
     impose new burdensome reporting requirements.  The 6 votes in opposition 
     were cast by Reps. Meehan (D-MA), Smith (D-WA), Sanchez (D-CA), Tauscher 
     (D-CA), Bono (R-CA), and Hill (D-IN). The text of the amendment is at 
     http://www.house.gov/hasc/press.htm.

     To find out if your Representative is a cosponsor of SAFE and how he or she 
     voted in Committee, use CDT's Voting Records Database at http://www.cdt.org/votes/.

     ___________________________________________________________________________
     (3) CRYPTO ADVERSARIES WILL USE AUGUST TO GET THEIR MESSAGE ACROSS

     Congress will go into its August recess on or about August 6, and is not 
     scheduled to return to Washington until September 7.  However, this will be 
     an important period for both proponents and opponents of SAFE.

     The Clinton Administration opposes SAFE. Senior officials including the 
     Attorney General, the FBI Director and the Deputy Secretary of Defense 
     spent considerable time on Capitol Hill in July lobbying against the Act 
     and will be lobbying the Rules Committee and the House leadership in the 
     coming weeks. The FBI will almost certainly enlist state and local law 
     enforcement officials to oppose the bill.

     SAFE supporters should also use this opportunity to call or visit their 
     Members of Congress to explain that widespread use of strong encryption 
     will, on balance, prevent crime and improve the national security by 
     protecting sensitive personal, business and government information. Members 
     of Congress will be holding town hall meetings and will be appearing at 
     other public events back in their districts during the August recess.  
     Personal contact is very important.  Make your voice heard!

     To find out more about how you can support SAFE, go to CDT's Action page at 
     http://www.cdt.org/action/

     Background information on the SAFE bill, including a chronology of events, 
     is available at http://www.cdt.org/crypto/legis_106/SAFE

     __________________________________________________________________________
     (4) SUBSCRIPTION INFORMATION

     Be sure you are up to date on the latest public policy issues affecting 
     civil liberties online and how they will affect you and what you can do to 
     make a difference! Subscribe to the CDT's Activist Network.  
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     _______________________________________________________________________

     (5) ABOUT THE CENTER FOR DEMOCRACY AND TECHNOLOGY/CONTACTING US

     The Center for Democracy and Technology is a non-profit public interest 
     organization based in Washington, DC. The Center's mission is to develop 
     and advocate public policies that advance democratic values and 
     constitutional civil liberties in new computer and communications 
     technologies.

     Contacting us:

     General information:  info@cdt.org
     World Wide Web:       http://www.cdt.org/


     Snail Mail:  The Center for Democracy and Technology
                  1634 Eye Street NW * Suite 1100 * Washington, DC 20006
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