Promotion of Commerce On-Line in the Digital Era (Pro-CODE) Act of 1997

Promotion of Commerce On-Line in the Digital Era (Pro-CODE) Act of 1997 - Prohibits the Secretary of Commerce (acting through the National Institute of Standards and Technology or otherwise) from promulgating or enforcing regulations, or otherwise adopting standards or carrying out policies: (1) that result in encryption standards intended for use by businesses or entities other than Federal computer systems; or (2) in a manner inconsistent with this Act, or that have the effect of imposing Government-designed encryption standards on the private sector by restricting the export of computer hardware and computer software with encryption capabilities.

(Sec. 5) Prohibits the Federal and State governments from: (1) restricting or regulating the interstate sale by any person of any product designed to provide encryption capabilities; or (2) requiring, as a condition of such a sale, that a decryption key, or access to a decryption key, be given to any other person (including a Federal agency or a private entity certified or approved by the Federal or a State government).

Grants the Secretary exclusive authority to control exports of all computer hardware, software, and technology with encryption capabilities, except that which is specifically designed or modified for military use, including command, control, and intelligence applications.

Requires only a general license (with limited exceptions) for the export or reexport of any: (1) computer software, including that with encryption capabilities, that is generally available, as is, and designed for installation by the purchaser, or (2) that is available on enactment of this Act or becomes legally available thereafter in the public domain (including on the Internet) or publicly available because it is generally accessible to the public in any form; or (3) computing device or computer hardware solely because it incorporates or employs in any form such computer software (including that with encryption capabilities).

Directs the Secretary to authorize the export or reexport of computer software with encryption capabilities under a general license for nonmilitary end-uses in any country to which exports of software or hardware of similar capability are permitted for use by financial institutions not controlled in fact by U.S. persons, unless there is substantial evidence that such software and hardware will be diverted to a military end-use or an end-use supporting international or domestic terrorism, modified for military or terrorist end-use, including acts against the national security, public safety, or the integrity of the transportation, communications, or other essential systems of interstate commerce in the U.S., or reexported without requisite Federal authorization, or intentionally used to evade enforcement of U.S. law or taxation by the U.S. or by any State or local government.

Requires that the publisher or manufacturer of computer software or hardware with encryption capabilities shall disclose (for reporting purposes only) within 30 days after export, to the Secretary such information regarding a program's or product's encryption capabilities as would be required for an individual license to export that program or product. Prohibits requiring or permitting the Secretary to impose any conditions or reporting requirements as a precondition to the exportation of any such product or program.

(Sec. 6) Establishes an Information Security Board comprised of representatives of agencies within the Federal Government responsible for or involved in the formulation of information security policy, including export controls on products with information security features (including encryption) to: (1) provide a forum to foster communication and coordination between industry and the Federal Government; and (2) foster the aggregation and dissemination of general, nonproprietary, and nonconfidential developments in important information security technologies, including encryption. Requires that the Board shall regularly report such information to appropriate Federal agencies to keep law enforcement and national security agencies abreast of emerging technologies so they are able effectively to execute their responsibilities and cause such information (other than classified, proprietary, or confidential information) to be published from time to time and made available to the public.

Directs the Secretary to establish quarterly meetings between the Board and representatives from the private sector with interest or expertise in information security, including cryptographers, engineers, and product managers. Permits the Board to meet at any time with one or more representatives of any person involved in the development, production, or distribution of encryption technology or of computing devices containing encryption technology.

Declares that nothing in this Act may be construed to affect any law intended to prevent the: (1) distribution of descramblers and any other equipment for illegal interceptions of cable and satellite television signals; (2) illegal or unauthorized distribution or release of classified, confidential, or proprietary information; or (3) enforcement of Federal or State criminal law.