An NCSL newsletter from the
Communications, Technology and
Interstate Commerce Committee

Contents

Committee News

Join the Communications, Technology and Interstate Commerce Committee at the Fall Forum in Savannah, Georgia, December 8-10, 2004. The Committee will sponsor programs on streamlined sales tax, telecommunications convergence, radio frequency ID (RFID), ID security, privacy & technology and host a session called Technology 101 designed to explain new IT and telecommunications technologies and their importance to policymakers.

For information about the Committee, contact NCSL Committee staff, Jo Anne Bourquard  or Neal Osten.

At a time when many Americans are concerned about their personal safety and security, residential cellular telephone use is rapidly growing. 

TELECOMMUNICATIONS

At a time when many Americans are concerned about their personal safety and security, residential cellular telephone use is rapidly growing.  There were just 13 million subscribers in 1993 compared to 159 million in December, 2003.  Ironically, most cellular telephone users do not realize it is unlikely their call to a 9-1-1 call center will not provide the center operator with the exact location of the caller.

As of October 2003, nearly 65 percent of public safety answering points (PSAPs) had Phase I wireless E911 service.  This service provides the approximate location of the caller.  However, the ultimate goal of wireless E911 service, also known as Phase II Deployment, is to offer more precise location information – the exact longitude and latitude from which the call is being transmitted.  Only 18 percent of the nation’s PSAPs have Phase II Deployment.  According to a General Accounting Office survey, only 24 states will likely implement Phase II by 2005 or sooner. 

There are several challenges for the effective implementation of wireless E911 service.  First, local government, state government and the wireless carriers must find funding in the amount of $8 billion over the next five years in order to pay for anticipated deployment costs.   Second, more than 6,000 PSAPs, multiple telephone carriers, equipment and software vendors, state and local decision makers need effective coordination.  The Department of Transportation and the Federal  Communications Commission promote wireless E911; however, their authority in overseeing deployment is limited because PSAPs fall under state and local jurisdiction. 

California created a dedicated funding source for wireless E911 implementation.  The Revenue and Taxation Code imposes a  surcharge on every intrastate telephone bill, including both landline and wireless telephones.  Approximately one-third of the states provide funding mechanisms.  However, in 2003 some states diverted as much as $53 million to other projects from taxes collected for E911 implementation. 

- Submitted by Bob Boerner

Policymakers are divided on whether to define this service as a telephone service that can be regulated by the states or as an information service that is not regulated. 

Internet Voice, also known as Voice over Internet Protocol (VoIP), allows consumers to make telephone calls using a broadband Internet connection, software, and a telephone.  Experts predict this technology  will sweep the country in the very near future.  However, policymakers are divided on whether to define this service as a telephone service that can be regulated by the states or as an information service that is not regulated. 

A Virginia bill (S.B. 673) restricts VoIP from regulation by the State Corporation Commission (SCC) by excluding it from the definition of telecommunications service and telephone service.  The measure also limits the definition of telecommunications service and telephone service for purposes of local taxation.  It will be continued to the 2005 session. 

- Submitted by Bob Boerner

Congress is looking to reopen the Telecom Act of 1996, primarily due to an array of changes in the marketplace that were completely unanticipated by lawmakers in the mid 90’s.

In 1996, Congress undertook its first major overhaul of telecommunications law in more than a half-century, meant to usher in a new era of competition in the telecommunications marketplace. Now, eight years later, Congress is looking to reopen that law, primarily due to an array of changes in the marketplace that were completely unanticipated by lawmakers in the mid 90’s. 

In drafting the Telecommunications Act of 1996, Congress based regulation almost entirely on the services offered at the time, subjecting the industry to different rules for wireline telephone, wireless, cable and broadcast television. Today’s telecommunications providers, however, are increasingly bundling services for voice, video and data and offering a slew of new or emerging broadband technologies such as Voice over Internet Protocol phone service, WiFi, WiMax, and broadband-over-powerline that avoid easy classification. 

Debate over just what the new rewrite should look like is a hot topic in Washington, DC. At a recent New America Foundation panel on the future of broadband dispersion, Kyle Dixon, senior fellow at the Progress and Freedom Foundation, suggested that any rewrite should encourage investment and innovation in the telecommunications industry, without subjecting it to current impediments such as regulatory cost, economic distortions and uncertainty. Outgoing Senator Fritz Hollings (D-SC), Ranking Member on the Senate Communications Committee, also supports a policy that fosters innovation within the industry, but recently warned that government should be mindful of the industry’s monopolistic past, stating “we should not allow the promise of new technology to blind us to the need for government enforced rules that protect consumers from the excesses of market power and promote important social goals that are an accepted part of communications policy.” 

Specific regulatory changes also are being discussed. Speaking before a forum hosted by a group of bi-partisan state regulatory commissioners, FCC Media Bureau Chief Kenneth Ferree anticipated a reorganization of the FCC authority under the 1996 Act based more on facilities, suggesting minimal rights-of-way rules to regulate wireline communications and minimal interference rules governing the wireless industry. 

- Submitted by Nick Steidel

Broadcasters are hesitant to relinquish their hold on the analog spectrum until concerns are alleviated regarding the loss of access to local stations by people with televisions incapable of receiving digital broadcasts. 

The nation’s radio frequency spectrum is an extremely valuable commodity, worth an estimated $700 billion. Current law requires broadcasters to vacate a portion of the spectrum by 2007, or when 85 percent of the nation’s television subscribers can receive digital signals, whichever comes later. However, broadcasters are hesitant to relinquish their hold on the analog spectrum by that date until concerns are alleviated regarding the loss of access to local stations by people with televisions incapable of receiving digital broadcasts. 

Senator John McCain (R-AZ) recently introduced an amendment to the Senate’s intelligence reform bill setting a hard and fast 2009 deadline requiring broadcasters to vacate channels 62-69 of the spectrum. That deadline ultimately was amended on the Senate floor to 2008, with a provision that broadcasters only are required to vacate these channels after a bona fide request from first responders or if interference issues arise between the public safety agency and the broadcaster. The vacated 700 MHz portion of the spectrum could prove vital to first responders in the form of additional wireless communications and could improve interoperability across public safety jurisdictions. 

The FCC also is developing a solution. The FCC Media Bureau plan finalizes the digital transition by 2009, which purportedly meets the 85 percent threshold established under current law. FCC Chairman Michael Powell, speaking before the Senate Commerce Committee on September 8, noted that as an added benefit to vacating broadcasters from the 700 Mhz portion of the spectrum, emerging wireless technologies including WiFi, EvDO and ultrawideband could use the spectrum space to increase their penetration into an increasingly complex telecommunications marketplace, to the benefit of consumers. 

- Submitted by Nick Steidel

At least 30 national parks now sprout cellular telephone towers and antennas.

Cellular telephone tower construction began in the early 1980s and it gained momentum with the passage of the federal Telecommunications Act of 1996.  The act opened public lands and altered certain construction restrictions.  As a result, at least 30 national parks now sprout cellular telephone towers and antennas.  For example, Western Wireless erected a 100-foot structure on a hill above the Old Faithful Historic District in 2001.  Several community neighborhood associations have recently successfully sued providers in an effort to keep the towers out of their residential neighborhoods. 

State legislatures are at the forefront of the cellular tower-siting process.  For example, Maryland makes a list of potential government-owned sites available to potential cellular telephone service providers and permits providers to submit proposals for use of other sites that are not on the list.  The state acts on all requests within a sixty-day time period and may require a provider to make repairs to the site or to install equipment. Kentucky law permits local government to plan and regulate the siting of cellular antenna towers.  Vermont law designates the Vermont Secretary of Administration as the exclusive agent for the state to contract for the use of state-owned property.  And, a Virginia study (Commonwealth of Virginia, A Study on the Feasibility and Desirability of Leasing State-Owned Properties to Wireless Telecommunications Providers, House Document No. 32) encourages siting of telecommunications towers on state-owned land in order to increase the availability of wireless services and potential income for the Commonwealth through land-use arrangements. 

- Submitted by Bob Boerner

California became the second state, after Utah, to pass anti-spyware legislation.

INTERNET & INFORMATION TECHNOLOGY

In September  California became the second state, after Utah, to pass anti-spyware legislation.  Five other states introduced spyware legislation in 2004.  California's Consumer Protection Against Spyware Act prohibits installing software on a consumer's computer that would take over control of the computer, modify its security settings, collect personal information, or interfere with its own removal. 

Critics of the new law, including the Privacy Rights Clearinghouse, say it is worse than no law at all, because its provisions requiring an "intent to deceive" are too difficult to prove, its definition of spyware is too narrow, and it fails to follow fair information practices.   But supporters of the new law, including several prominent technology companies, say it identifies and prohibits bad practices without prohibiting important consumer and business services. 

- Submitted by Pam Greenberg

A new NCSL publication discusses online privacy, outlines state actions, and presents policy arguments about Internet privacy.

A new NCSL publication, States and Internet Privacy, discusses online privacy, outlines state actions, and presents policy arguments about Internet privacy.  The NCSL Foundation for State Legislatures' Internet Privacy Partners Project was developed to support and enhance the Committee’s focus on this topic.  In 2003 and 2004, the project hosted a series of sessions about Internet privacy-related issues in conjunction with NCSL meetings.  The project also developed an Internet Privacy Web site.  Minnesota Senator Steve Kelley and Delaware Representative Roger Roy co-chaired the project.  A steering committee, including sponsors Microsoft and Time Warner, helped guide the project direction and products.  For more information about the project or for a copy of States and Internet Privacy, contact Pam Greenberg at pam.greenberg@ncsl.org. 

While every state legislature has a web site and provides access to bills and bill information, some states are adding new features that make it easier for legislators and citizens to find information quickly and easily. 

Legislatures are making use of technology to improve access to legislatures in new ways and to a broader group of users.  While every state legislature has a web site and provides access to bills and bill information, some states are adding new features that make it easier for legislators and citizens to find information quickly and easily.  For example, some states are providing users with Web content for handheld devices.  Legislatures also are beginning to use Really Simple Syndication (RSS), an easy way for users to review information of interest from many different sources by going to a single page.

Keeping up with policy issues can be time consuming, and many Internet users find it difficult to keep up with all the news, legislative and policy sites on the Web, or find it increasingly difficult to find e-mail newsletters among all the e-mail they receive.  An ABC News story, What is RSS?, offers more information about RSS. 

Several state legislatures are using RSS to provide users with notices of new Web content or to distribute newsletters.  Utah provides a bill status feed and a committee feed (users select bills or committees they wish to track).  The Wisconsin Legislative Reference Bureau provides RSS feeds for new publications.  The Texas Legislature provides feeds for bill text, fiscal notes, bill analyses, and schedules and calendars.  The Hawaii Legislative Reference Bureau also provides RSS feeds for various publications. 

- Submitted by Pam Greenberg

Arizona provided wireless access in the capitol in 2004, and the service was well-received and popular. 

There is a growing interest in wireless access for the public in state capitol buildings.  Arizona provided wireless access in the capitol in 2004, and the service was well-received and popular.  Other states are looking into providing this service, including South Dakota, which plans to offer wireless access to the public for the 2005 legislative session.  However, security and costs are a concern when setting up such a service.  In Arizona, three companies—Cox Communications , Intel and hotZona (a local ISP)--donated services and products for the project. 

- Submitted by Pam Greenberg

Florida officials utilized the Web to distribute information and resources to state libraries and archives dealing with soaked collections.

After hurricanes ravaged their way through the South, Florida officials utilized the Web to distribute information and resources to state libraries and archives dealing with soaked collections.  Hurricanes devastated a broad portion of Southwest Florida, and officials at the Florida Division of Library and Information Services found the Web was the most efficient way to communicate recovery information statewide. The division manages information for state agencies and the Legislature, and it coordinates with public libraries to preserve state history.

Florida’s disaster recovery website includes a variety of information, including data on dealing with mold and mildew on soiled wet paper to distinguishing between large versus small collections.  Additionally, the webpage has links to professionals—both in Florida and nationwide—that specialize in everything from data recovery to dehumidification.  It includes a  chart outlining document recovery techniques for media that archives might maintain.  And, it prescribes a time frame for taking action, steps that should not be taken, and the most effective methods for drying and restoring materials.

- Submitted by Janna Goodwin

Operation Web Snare was announced by the Justice Department in September.

CRIME AND SECURITY

The Justice Department announced in September the arrests or convictions of more than 150 individuals and the return of 117 criminal complaints and indictments in a joint nationwide enforcement operation aimed at major varieties of cybercrime. 

This collaborative effort, known as “Operation Web Snare,” is an organized project among 36 U.S. Attorneys’ offices nationwide, the Criminal Division of the Department of Justice, 37 of the FBI's 56 field divisions, 13 of the Postal Inspection Service's 18 field divisions, the Federal Trade Commission (FTC), together with a variety of other federal, state, local and foreign law enforcement agencies. It is targeting a range of online financial crimes, such as identity theft, fraud, counterfeit software, computer intrusions, and other intellectual property crimes. 

The incidence of these online crimes is growing dramatically.  For example, "phishing" attacks (using a false or "spoofed" e-mail address and web sites created to resemble legitimate organizations to commit theft and fraud) increased by more than 800 percent in the first six months of the year—from 176 in January 2004 to 1,422 in June 2004, according to the Anti-Phishing Working Group. 

To combat these crimes, cooperation among various agencies is vital.  Online crimes are not only multi-jurisdictional, but the nature of prosecuting traditional crimes with assorted forms of computer crimes can be challenging. 

Cooperation between law enforcement and the private sector can also help to reduce these crimes and help victims recover.  Through Operation Web Snare, investigators identified more than 150,000 victims with estimated losses of more than $215 million. 

- Submitted by Janna Goodwin, Pam Greenberg and Heather Morton

SB 1506 criminalizes distributing videos, music or other files in bulk on the Internet without providing a link to their source.

In late September, Governor Arnold Schwarzenegger signed SB 1506, sponsored by California Senator Kevin Murray, which criminalizes distributing videos, music or other files in bulk on the Internet without providing a link to their source. The new law requires anyone who dispenses copies of a film, game or piece of music (or “file sharing”) to include his or her true email address.  Offenders could receive a penalty of a year in jail or a fine of $2,500.

The Motion Picture Association of America (MPAA) supported the law, the first of its kind nationwide. MPAA claimed that nearly a quarter of the world's broadband users have illegally downloaded a film at one time or another—costing the industry around $3.5 billion each year.   Critics of the bill, such as the Electronic Frontier Foundation, stated that the bill was intrusive and violated laws that forbid collection of personal information from children online without their parents’ consent. 

- Submitted by Janna Goodwin

NCSL’s Identity Security Partners Project will meet in Savannah, Georgia at the Fall Forum.

NCSL’s Identity Security Partners Project will meet at the Savannah, Georgia Fall Forum on Thursday, December 9^th, in conjunction with NCSL’s Standing Committees.  In addition, on December 10^th members will review the ID Security Principles and the draft publication developed by the project .  For more information, contact Jo Anne Bourquard in NCSL’s Denver office 303-364-7700.