17 September 1999
Source: http://www.access.gpo.gov/su_docs/aces/aaces002.html

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[Congressional Record: September 16, 1999 (Senate)]
[Page S11051-S11053]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
[DOCID:cr16se99-58]


                        PETITIONS AND MEMORIALS

  The following petitions and memorials were laid before the Senate and
were referred or ordered to lie on the table as indicated:

[Excerpt]

                    Assembly Joint Resolution No. 10

       Whereas, current United States export control laws
     governing cryptographic products are adversely affecting
     California and American companies; and
       Whereas, with California poised to greatly benefit from the
     rapid growth of electronic commerce, which is predicted to
     amount to as much as $200 billion per year by the year 2000,
     outdated cryptographic provisions dating back to World War II
     and the Cold War retard the ability of California producers
     of cryptographic products to compete and succeed in the
     global market; and
       Whereas, there exists a tremendous worldwide market for
     cryptographic products incorporating secure encryption
     features; and
       Whereas, foreign competitors of data-scrambling technology,
     unfettered by strict government export controls on
     cryptographic products, are able to successfully develop,
     market, and sell sophisticated encryption systems well above
     the United States limit; and
       Whereas, any benefit to American law enforcement or
     national security realized by American export controls on
     cryptographic products has been minimized by the rapid
     availability of strong, robust cryptographic systems produced
     by non-American companies and even by the ability to lawfully
     import these systems into the United States; and
       Whereas, the Computer Systems Policy Project estimates that
     if the current outdated policy remains in effect, the cost to
     American companies could be up to $96 billion by the year
     2002 and the loss of over 200,000 high-skill, high-wage jobs
     by the year 2000; and
       Whereas, the National Research Council of the National
     Academy of Sciences has concluded after exhaustive study that
     United States export controls on cryptography may be causing
     American software and hardware companies to lose a
     significant share of a rapidly growing market, with losses of
     at least several hundred million dollars per year; and
       Whereas, the current administration supports a ``key
     recovery'' system that would force computer users to give the
     government access to their encryption keys, thus allowing the
     federal government to monitor an individual's communications
     and on-line transactions without that individual's knowledge
     or consent; and
       Whereas, there is pending in the United States Congress
     H.R. 850, which will substantially ease or eliminate current
     federal export controls on American cryptographic products,
     and other legislation related to cryptography and export
     controls is being introduced and considered in the Congress;
     now, therefore, be it
       Resolved by the Assembly and Senate of the State of
     California, jointly, That there be greater discussion between
     industry, government, and the public in this policy area; and
     be it further
       Resolved, That the Legislature of the State of California
     respectfully memorializes the President and the Congress of
     the United States to act immediately to consider the
     relaxation of current United States export control laws
     governing cryptographic products and to discourage the
     implementation of a federally mandated ``key recovery''
     program; and be it further
       Resolved, That the Chief Clerk of the Assembly transmit
     copies of this resolution to the President and Vice President
     of the United States, to the Speaker of the House of
     Representatives, and to each Senator and Representative from
     California in the Congress of the United States.
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