[Page: S4472]
---

   The PRESIDING OFFICER. The Chair announces on behalf of the majority leader, pursuant to Public Law 105-277, the appointment of Delna Jones of Oregon, Representative of Local Government, as a member of the Advisory Commission on Electronic Commerce, vice James Barksdale.

   Mr. LOTT. Mr. President, the Internet is nearly a ubiquitous aspect of American life. It goes without saying ``electronic commerce''--e-commerce--has become a central aspect for buying products and services. Only two years ago five million households shopped for some product on the Internet. Last year that number doubled. Now the forecast for this year is that

[Page: S4473]

   Mr. President, city, county and state officials are understandably overwhelmed by this Internet Tsunami--15 million homes spending $31 billion. I have spent time talking with these public officials. I have listened to their views. They are frightened, and they have legitimate concerns about their sales tax base. However, electronic commerce will not end Main Street as we now know it. I am confident public policy will evolve to deal with the new electronic marketplace in a fair and balanced manner.

   Although the Internet is currently accessed by almost 40 million American homes, less than half are using the Internet for commerce purposes. This tells me there are issues that need to be addressed beyond how the sales tax is treated--issues like encryption, privacy and digital signatures--all necessary components for vibrant Internet commerce. I hope Congress will examine and act on these issues during the 106th Congress, while the Advisory Commission on Electronic Commerce works on the tax implications.

   The Advisory Commission on Electronic Commerce must complete its report promptly so the information is available to Congress before the moratorium on new Internet taxes ends. Mr. President, the report date does not need to be extended. I am very impressed with Governor Jim Gilmore's leadership of the Commission and his aggressive technology agenda. I commend him for his progress thus far, and I know he will deliver on time a fair and balanced report.

   Mr. President, let me back up and say a few words about the Commission. This provision was part of the compromise Representative CHRIS COX worked out with state and local government associations. His efforts precipitated the legislative process and culminated in the bill becoming law. I want to thank Representative COX for proposing and fine tuning the Commission. I consulted with him as Congress worked to get this Commission up and running and appreciate his diligence and insight throughout the process.

   Mr. President, today I also want to commend my friend Jimmy Barksdale for graciously volunteering to step down from the Commission. He and I both agree that the issues surrounding the Internet are too important to let individuals and personal agendas get in the way. Jimmy decided to step aside so the Commission can get beyond the disruptive law suit. Let me say a few words about why I selected Jimmy in the first place--I wanted a Mississippian who could bring Southern common sense and wisdom to the evolving public policy for the Internet. Jimmy knows what it takes to create a new marketplace and he understands the interplay and context for each facet of the telecommunications sector, especially since the Telecommunications Act of 1996 empowered many sectors to compete with each other.

   I have selected Ms. Delna Jones to fill the vacancy. Ms. Jones is a public official who brings the Commission into a balance between public and private sector interests. Ms. Jones is a county official from Washington County, Oregon, thus ensuring that each layer of local government is now represented. Ms. Jones is from a non-sales tax state which now means all state configurations for income and sales tax approaches are present. Ms. Jones also worked for a telecommunications company and is no stranger to this aspect of the communication world. Ms. Jones will provide the Commission a voice for the 46% of all Internet users who are female. Ms. Jones has been recognized by the National Federation of Independent Business which tells me she is sensitive to the needs of small business--a key component of our economy. Her background brings a valuable professional richness to the Commission. Senator GORDON SMITH both knows and has served with Ms. Jones in Oregon's state legislature. He believes she has the right mix of professional and personal skills to make a meaningful and significant contribution to the Commission.

   Mr. President, I want the record to be clear. The Commission's imbalance was not created by me, and it is unfortunate that those who did not fulfill the law's mandate were paralyzed and unable to offer a real fix. I have stepped up to the problem and changed one of my selections. Evolving Internet public policy is just too important to be held hostage. I want America to have a vibrant electronic communication and commerce medium for the 21st Century.

   I also want to challenge the members of the Advisory Commission on Electronic Commerce to focus and produce recommendations that will assist Congress in making the right public policy for the Internet.

   Mr. President, today 37 million Americans will click on the Internet for something, perhaps a purchase. They need and deserve the right public policy--a policy this Commission can and will influence. We should not be afraid of this technology shift--the Internet's Tsunami, e-commerce--nor should we ignore the consequences of how America's commerce is or should be structured to ensure the prosperity and vitality of America's 21st Century electronic economy.

   The PRESIDING OFFICER. The Senator from Oklahoma.

END