PANEL TIES STATE DEPT. BUDGET TO SATELLITE EXPORTS TO CHINA

State Dept. can’t use budgeted funds to process satellite export licenses to China unless it gives 15 days’ notice to appropriations committees in both houses for each licensing action, Senate Appropriations Committee said last week. Under Commerce-Justice-State budget bill marked up July 19 by Senate panel, advance notice to both committees would be required before State could begin processing application for export of U.S.-made commercial satellites and satellite components.

Meanwhile, committee expressed concern in budget report that State Dept. was encroaching upon Dept. of Commerce’s jurisdiction over general international trade: “Every year the State Department attempts to pursue international trade activities that are clearly within the traditional domain of the Commerce Department’s International Trade Administration (ITA), particularly within the area of expertise of the [U.S] and the Foreign Commercial Service. This continual push by the State Department to expand its jurisdiction in this area runs counter to the wishes of the committee, which notes the expansive and intractable foreign policy issue already confronting the Department. No funding is provided for this initiative.”

Also on international communications-related budget front, panel approved $68.9 million for Commerce’s Bureau of Export Administration, of which $7.2 million “shall be for inspections and other activities related to national security.” It approved $347 million for ITA, $14.5 million above agency’s request. It accepted in report ITA’s “estimate of $3 million in fees during fiscal year 2002. As in past years, the committee expects ITA to continue working on efforts to structure its programs to enable the agency to increase fees for the services it provides.” Out of $347 million total appropriation for agency, committee recommended that $27.4 million go to market access and compliance activities. Panel also recommended $49.4 million for International Trade Commission, $2 million below independent agency’s request.

Cyberinvestigations and infrastructure protection would be given top priority under restructured FBI budget. Committee has proposed modifying FBI’s “resource structure” to designate investigation of cybercrimes and protection of nation’s critical infrastructures as “Tier 1” missions. “These activities will define the FBI in the 21st century,” committee said. Appropriators proposed that $101.5 million be allocated to support operations and consolidate funding of “mutually supportive [cyber]initiatives that have been scattered across existing decision units.”

FTC would get $156.27 million under bill, identical to agency’s request. Report said agency’s budget “will be fully funded by fees assessed on Hart-Scott-Rodino Act premerger notification filings.” Committee said its proposal would enable agency to maintain staff equivalent to 1,080 full-time positions.

Committee proposed that NTIA be given its full $73 million request. Additional $14 million was approved for salaries and expenses, $2.1 million of which was reserved for FTC’s radio spectrum management system.

Commerce Dept.-administered public telecom facility construction grants of up to $43.5 million also were approved. About $15 million in information infrastructure grants were approved, 5% of which “may be available for telecommunications research activities for projects related directly to the development of a national information infrastructure,” bill said.