Administration Working on Plan to Keep Smut Off Computers Eds: Also running on general news wire. By JEANNINE AVERSA Associated Press Writer WASHINGTON (AP) - Trying to stay a step ahead of Congress, the Clinton administration is putting together a plan to keep obscenity and child pornography off computer networks. "We are currently developing a legislative proposal that will best meet these challenges and provide additional prosecutorial tools," Kent Markus, an acting assistant attorney general at the Justice Department, wrote in a letter Wednesday to senators. While the administration has raised constitutional concerns about other plans to restrict smut in cyberspace, Markus said its own legislative package will take into consideration "the need to protect fundamental rights guaranteed by the First Amendment." It's not clear how the administration would do this. Justice Department officials working on the plan were not available to comment Wednesday. Senate legislation reforming telecommunications laws contains a provision outlawing smut in computer communications and over telecommunications networks of the future. The provision, written by Sen. James Exon, D-Neb., would punish people who transmit "obscene, lewd, lascivious, filthy or indecent" materials. The measure would impose fines of up to $100,000 and jail terms of up to two years on violators. The Clinton administration, the American Civil Liberties Union, computer users and privacy groups all have raised First Amendment concerns about Exon's provision, saying it would outlaw indecency, which is constitutionally protected speech. Court decisions generally protect indecent speech in written and broadcast material but not obscenity. The courts have defined obscenity as having no redeeming social, political or literary value as measured by contemporary community standards. Exon has said his proposal is consistent with the First Amendment because the courts have permitted regulation of protected speech in the interests of children. "His goal is to protect children," Exon spokesman Russ Rader said. The administration has other concerns, which it outlined on Wednesday. Exon's plan would thwart enforcement of existing laws regarding obscenity and child pornography, threaten privacy rights and have the unintended consequences of jeopardizing law enforcement's ability to conduct court-ordered wiretaps, Markus wrote. It would thwart enforcement by creating a higher legal standard than now exists for the government to prove guilt, he wrote. Under the Exon provision, only those persons with "actual knowledge" of the "specific content of the (unlawful) communication" could be held criminally liable. The administration recommended that Congress undertake a comprehensive review of current laws and enforcement resources for prosecuting on-line obscenity and child pornography. Sen. Patrick Leahy, D-Vt., raised concerns about the Exon proposal at a Judiciary antitrust subcommittee hearing. Leahy said he is convinced that portions of the Exon plan "undercut privacy protections for on-line communications."