High Tech a Winner at Nation’s Ballot Boxes

Voters this month returned to office nearly all of the high-tech enthusiasts on Capitol Hill, sparking predictions that Congress will continue its support for the booming technology industry.

In an election that will influence such issues as e-mail spam and cyberporn in 1999 and beyond, voters appeared satisfied with the government’s mostly non-regulatory approach to the Internet, computers and telecommunications. Or at least not unhappy enough to throw the incumbents out.

High technology, of course, can hardly be viewed as a political litmus test in a nation where voters are more preoccupied with education, taxes and health care. But of the 10 federal lawmakers identified by Internet publisher ZDNet as the “most tech-savvy,” all but one were returned to office. House Internet Caucus founder Rep. Rick White (R-Wash.) was the exception, but he was defeated mostly for supporting an impeachment inquiry of President Clinton and other non-technology issues.

“Voters expect politicians to be enlightened about technology policy, [but supporting] the Internet can’t save you [from voter wrath] all by itself,” said Greg Simon, the former domestic policy advisor for Vice President Al Gore who now runs his own high-tech consulting firm.

While most congressional technology boosters stayed in office, House Speaker Newt Gingrich (R-Ga.) gave up the speakership and announced he will retire. Clinton’s technology policy czar, Ira Magaziner, also plans to leave.

In addition, five of the 21 state attorneys general participating in the Justice Department’s antitrust suit against Microsoft left office. And two others could be replaced: Republican Dennis C. Vacco, who is in a runoff with challenger Eliott L. Spitzer in New York, and District of Columbia Corporation Counsel John M. Ferren, who will be serving under a new mayor.

Although the overall political climate for technology aficionados was little changed, the elections produced some wrinkles that could affect technology companies as lawmakers gear up to address online privacy and high-speed Internet access, among other issues.

In the wake of exit polls that showed strong support for education issues, some experts believe the election may increase political backing for the federal government’s $10-billion initiative to wire libraries and schools for Internet access, for example.

The Internet wiring program, often referred to derisively as the “Gore tax” because it is championed by the vice president, has been mired in controversy. It was enacted as part of the Telecommunications Act of 1996 but federal regulators have had to scale back the size of the program in recent months to placate critics. Today, however, a triumphant Gore is expected to announce the first $269 million in grants from the program, including $9.93 million for 230 schools in California.

Similarly, the fate of New York Atty. Gen. Vacco, who was losing by several thousand votes Friday in a close race, has triggered talk of changes at the Microsoft antitrust trial.

Vacco’s deputy, Steven Houke, is representing the states in U.S. District Court in Washington, sitting next to lead justice department attorney David Boies. But Houke is almost certain to be replaced, sources say, if Vacco loses the election. That could lead to further delays and alter the established relationship federal antitrust authorities have with the states.

“There is a lot of bad blood between Vacco’s people and Spitzer,” said a lawyer close to the New York attorney general’s office. “This could have an impact” on trial strategy.

Iowa Atty. Gen. Tom Miller, who is on a committee overseeing the state litigation against Microsoft, has sought to calm such speculation. He said all 20 states and the District of Columbia “remain committed” to the case despite the elections.

At the White House and on Capitol Hill, the commitment to the high-tech industry is also likely to remain strong, despite the departure of Magaziner and the resignation of Gingrich.

Although there have been published reports that Magaziner may be replaced by FCC aide Elliott Maxwell, sources say the White House is unlikely to replace the tech czar, who advised Clinton on issues such as electronic commerce.

Instead, a little-known arm of the Commerce Department, called the National Telecommunications and Information Administration, will probably continue much of Magaziner’s work on technology issues. Tom Kalil, a senior director of the National Economic Council, may also expand his role advising the White House on technology issues.

“Ira will be missed because he filled a void and played a big role at a crucial time with regard to technology policy; he was the go-to guy,” said Larry Irving, an assistant secretary of Commerce who heads NTIA.

But he added that although the faces have changed, the Clinton administration will maintain its current technology policy and expects to continue to have a positive working relationship with Congress on technology issues.

While Gingrich was less visibly involved with technology policy than Magaziner, he was an ardent advocate for the industry and worked to get several pieces of high-tech legislation passed.

Gingrich this year voted in favor of increasing the number of foreign high-tech workers allowed to immigrate to the U.S. each year and backed legislation to limit shareholder lawsuits that have been proliferating against high-tech companies with volatile stock prices.

Rep. Bob Livingston (R-La.), who last week received the endorsement of the Republican Conference in his bid for the speaker’s post, has been less visible on high-tech issues.

The political changes come in the wake of one of the most productive years the high-tech industry has ever enjoyed on Capitol Hill.

Congress this fall passed the Internet Tax Freedom Act, which imposed a three-year moratorium on new taxes on electronic commerce; a measure to reform copyright laws in the Digital Age; and the law that lets thousands more skilled foreign workers into the United States.

But plenty of unfinished business remains.

Gingrich, for one, may leave office without appointing five members to a new federal commission that will make recommendations about when and if online goods and services should be taxed once the moratorium expires.

The future of the High Technology Working Group, an advisory group set up by Gingrich to work with industry and Congress on technology issues, is also in limbo.

Despite the speaker’s impending departure, most observers expect the federal government to continue its strong support for high tech.

“Many politicians in both parties are keenly interested in high tech and Silicon Valley,” said Michael Engelhardt, vice president of public policy at the Technology Network, a Palo Alto industry advocacy group.

“In the last year, we have had more than 120 meetings with people in Congress,” Engelhardt said.

“There will probably be a lot of things for industry and politicians to fight about in the future.” But for now, he said, “we enjoy broad bipartisan support from politicians . . . [and] we are pretty satisfied with the way things are going.”

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Times staff writer Jube Shiver Jr. can be reached via e-mail at jube.shiver@latimes.com.