H-1B increase

Date: Saturday, January 04, 2003 12:18 AM

H-1B and JOB DESTRUCTION NEWSLETTER

www.ZaZona.com

It's not a question of _if_ an increase in the H-1B will be introduced to
Congress, it's only a question of _when_. If past history is any guide the
increase will be introduced in early January. The only question now is who
will sponsor it.

http://www.govexec.com/dailyfed/0103/010303td1.htm

January 3, 2003
Lobbyists detail top tech policy items

By Bara Vaida, National Journal's Technology Daily

Proposals designed to stimulate the economy, foster the deployment of
high-speed Internet access, prevent digital piracy and protect online
privacy promise to be among the top policy items for the high-tech sector in
the 108th Congress, according to industry lobbyists.

Other issues on the agenda likely will include cybersecurity, education
policy, export-control reform, federal procurement and appropriations, H-1B
visas for highly skilled foreign workers, the disposal of high-tech
equipment, Internet taxation, employee stock options and trade.

"We will be aggressive on the issues important to the tech community, and we
think we can have the same success in the 108th Congress as we did in the
107th Congress," said Ralph Hellmann, senior vice president at the
Information Technology Industry Council (ITI). The group ranks economic
stimulus, broadband deployment and the debate over whether to mandate
anti-piracy technology as its most important policy items next year.

Attentions Turn To Economic Jumpstart

An economic stimulus package is most likely to be the first issue to demand
high-tech lobbyists' attention, as President Bush is planning to introduce a
package of tax cuts aimed at boosting business investment and getting more
money into consumers' hands. Early this year, a coalition of high-tech
companies helped win enactment of an economic stimulus bill that lets firms
take tax write-offs for an additional 30 percent of assets when they
purchase them. But the economy has remained sluggish, and many businesses
have been calling for another round of tax cuts.

Hellmann said many observers believe that the 30-percent depreciation figure
in the 2002 stimulus package was not enough to encourage businesses to
invest in information technology. He said high-tech lobbyists are working
with the Bush administration and lawmakers on extending or expanding the
depreciation measure, in conjunction with a tax incentive that would give
consumers and businesses more money to purchase technology and other
business products.

ITI companies also are considering other tax measures, such as reforming
international tax law to encourage U.S. businesses with international
offices to invest more of their capital at home. Some tech companies also
may push for a permanent research and development tax credit. The credit is
set to expire in June 2004.

"We are encouraged by anything the White House can do to stimulate the
economy," said Brian Kelly, senior vice president at the Electronic
Industries Alliance. Kelly said the administration has sought advice from
the high-tech sector on a stimulus package.

The broadband debate is now centered at the FCC, which in January is
expected to decide whether to change the rules governing how competing firms
share the networks of the Bell telephone companies and how those rules
affect the rollout of high-speed facilities and investment in technology
innovation.

High-tech companies have argued that the FCC should deregulate the Bell
companies' new investments in broadband. If the FCC does not act in a way
that satisfies high-tech companies, they are likely to begin lobbying for
legislation.

Regardless, incoming Senate Commerce Committee Chairman John McCain,
R-Ariz., already has declared that broadband will be on the agenda in his
committee next year. Some companies also may continue to lobby Congress to
pass a tax credit designed to encourage the deployment of broadband
infrastructure in rural areas.

"Across the board our industry views the widespread availability of
broadband as critical," said Jonathan Zuck, president of the Association for
Competitive Technology.

Intellectual Property A Priority

A number of high-tech companies also have formed a coalition to educate
lawmakers on the industry's efforts to combat piracy on the Internet. In
addition, they plan to fight any legislation that would impose a technology
mandate in an effort to stymie such piracy.

Ernest (Fritz) Hollings of South Carolina, who will be the Senate Commerce
Committee's ranking Democrat, introduced a bill last year that would have
imposed such a mandate. The Motion Picture Association of America has been
lobbying Congress heavily to impose a legislative solution to Internet
piracy.

The anti-piracy effort also will be discussed in the context of the
transition to digital television. House Energy and Commerce Committee
Chairman W.J. (Billy) Tauzin, R-La., has promised to hold hearings on how to
protect digitally broadcasted content.

After lying dormant for the past year, meanwhile, privacy is expected to
resurface as a key lobbying issue, reflecting the rise of Alabaman Richard
Shelby as chairman of the Senate Banking Committee after Republicans won
control of the Senate last November. Shelby has said that privacy is of
intense interest to him and that he may examine the issue if Congress
modifies the Fair Credit Reporting Act (FCRA), parts of which face
reauthorization.

Computer security, federal procurement and appropriations to the new
Homeland Security Department will be an important issue for some high-tech
firms, as they seek new markets within government. Firms also plan to
encourage the government to invest in building an efficient department and
to bolster computer security at federal agencies.

Further, they plan to monitor the development of the White House
cybersecurity strategy. The plan does not require much action from Congress
but could if it fails to convince the private sector that it needs to
protect its computer networks.

Business Software Alliance President Robert Holleyman also said his group
will be lobbying to make sure the Homeland Security Department does not
choose one technology standard.

Renewed Focus On Stock Options, Exports

The handling of stock options remains a worry for some high-tech companies
because McCain last year introduced a bill to require them to record those
options as expenses and vowed to have a debate on the issue in the Senate.
Additionally, the nation's accounting oversight body, the Financial
Accounting Standards Board, plans to decide in the first quarter whether to
change rules that allow U.S. companies to avoid treating stock options as a
compensation expense.

Computer companies also plan to lobby for renewal and reform of the 1979
Export Administration Act (EAA) and an end to the standard that restricts
computer exports based on the millions of theoretical operations per second
(MTOPS) that computers perform. And on trade, EIA's Kelly said his
association will work with the Office of the U.S. Trade Representative to
ensure that high-tech interests are addressed in new treaties.

Here is a summary of other issues likely to be on the high-tech agenda:

Electronic waste: EIA is watching state and local and international
regulations governing the disposal of high-tech equipment. The issue also
may surface in Congress, as some lawmakers push for a national effort to
pre-empt multiple and competing laws in the states.

Internet taxes: Harris Miller, president of the Information Technology
Association of America (ITAA), said states may try to increase pressure on
Congress to allow them to tax both access to the Internet and e-commerce,
but ITAA will lobby to continue the current moratorium on access taxes, as
well as to prevent online sales taxes, an issue separate from the
moratorium.

Education: AeA plans to continue work with the states to help them implement
the education bill that Bush signed in 2002.

H-1B visas: High-tech companies may lobby to increase the level of visas
that enable highly skilled foreign workers into the United States for six
years. The cap on those visas is scheduled to drop to 65,000 from 195,000 at
the end of fiscal 2003.

Brought to you by GovExec.com

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