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14 April 1999
Source: http://www.senate.gov/~mccain/encryp3.htm 

     WEDNESDAY, APRIL 14, 1999
     NANCY IVES (202)224-7130
     PIA PIALORSI (202)224-2670

                         McCAIN INTRODUCES ENCRYPTION BILL 

     WASHINGTON, D.C. -- Senator John McCain (R-AZ), Chairman of the
     Committee on Commerce, Science, and Transportation, today
     introduced legislation to encourage electronic commerce by
     facilitating the accessibility and export of encryption
     technology. The PROTECT Act's purpose is to promote electronic
     commerce that is in keeping with our national security. 

     "This bill protects our national security and law enforcement
     interests while maintaining the United States leadership role in
     information technology. We must update our laws to reflect the
     realities of the information age," McCain said. "The PROTECT Act
     would establish a credible procedure for making encryption export
     decisions, while providing a national security backstop to make
     certain that advanced encryption products do not fall into the
     wrong hands." 

     Senator Conrad Burns (R-MT) and McCain have been working to reach
     a compromise on this issue for many months. Burns is a co-sponsor
     along with Senators Ron Wyden (D-OR), Spencer Abraham (R-MI),
     John Kerry (D-MA), and Patrick Leahy (D-VT). 

     The bill would do the following: 

     Direct the National Institute of Standards and Technology (NIST)
     to complete the establishment of an advanced encryption standard
     by January 1, 2002. 

     Allow for immediate exportation of encryption of key lengths of
     up to 64 bits. 

     Permit the exportation of non-defense encryption (above 64 bits)
     to responsible entities and governments of North Atlantic Treaty
     Organization (NATO), Association of Southeast Asian Nations
     (ASEAN), and Organization for Economic Cooperation and
     Development (OECD). 

     Allow for liberalization of export controls for encryption by
     creating an Encryption Export Advisory Board to review
     applications for exemption of encryption of over 64 bits and give
     recommendations to the Secretary of Commerce. The board would be
     made up of 12 members: the Under Secretary of Commerce for Export
     Administration, seven individuals appointed by the President (one
     from the National Security Agency, one from the Central
     Intelligence Agency, one from the Office of the President, and
     four representatives from the private sector who have experience
     in information technology), four representatives appointed by
     Congress (one by the Majority Leader of the Senate, one by the
     Minority Leader of the Senate, one by the Speaker of the House,
     and one by the Minority Leader of the House). 

     Give the Secretary of Commerce 15 days to respond to
     recommendations. If he rejects a recommended exemption, his
     decision is subject to judicial review. 

     Reaffirm presidential authority to veto a recommended exemption
     for national security purposes, and to establish terrorist and
     embargo controls. 

     Authorize increased funding to law enforcement and national
     security agencies to upgrade facilities and intelligence. 

     Give the Secretary of Commerce the authority to prohibit the
     exportation of particular encryption products to an individual or
     organization in a foreign country identified by the Secretary. 
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