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News from the States

Contents

First Meeting of the Communications, Technology & Interstate Commerce Committee

NCSL's 15 new standing committees met for the first time at the Fall Forum December 11-13, 2002 in Washington DC. The Communications, Technology and Interstate Commerce Committee sponsored programs on sharing justice information to prevent crime and terrorism, identity theft, rural telecommunications, and streamlined sales tax. Electronic handouts of this meeting are available through the committee web site.

- submitted by Jo Anne Bourquard and Neal Osten

Committee officers selected six major issues for focus this year:

1. 21^st Century Telecommunications
2. Technology & Public Safety (911, interoperability, integration)
3. Access to and Privacy of Government E-Mail
4. Streamlined Sales Tax
5. Cable Rights of Way & Fees
6. Internet Privacy

- submitted by Jo Anne Bourquard and Neal Osten

Spring Forum, April 24-27, 2003 Boston, Massachusetts

The next Committee meeting will be April 24-27, 2003 at the NCSL Spring Forum in Boston, Massachusetts. Information about committee programs in Boston will be updated through the web site.

- submitted by Jo Anne Bourquard and Neal Osten

Another California First: Computer Security Disclosure Law

A new California law requires that companies disclose when a breach of computer security may have allowed theft of an individual's name, social security number, driver's license number or customer account number. SB 1386, sponsored by Senator Steve Peace, is meant to fight identity theft. The law requires companies to notify impacted customers in "the most expedient time possible and without unreasonable delay." It was passed in September 2002 after hackers broke into the California state employee database containing the personal information of more than 200,000 people who were not notified of the breach for more than two weeks. The break in security could mean a significant shift in legal policy and cybersecurity.

The law addresses state agencies and private companies doing business in California. It also could have national ramifications because of California's size and important role in the high-tech industry. Law enforcement claims that full disclosure could destroy some investigations. However, the law includes a clause that suspends full disclosure if it would harm an investigation.

South Carolina has opened the nation's first statewide crime center dedicated to computer and other high tech crimes. Investigations conducted by the center include Internet fraud, child exploitation, computer intrusions, child pornography, cyber terrorism and various telecommunications crimes.

The Columbia-based Computer Crime Center will handle the forensic examination of all evidence collected during investigations of high tech crimes. They recently solved a case involving 20 identity thefts. The center is a cooperative effort between federal and state officials --employees include personnel from the FBI, Secret Service, and State Law Enforcement Division. Working through the center provides local law enforcement investigators federal subpoena power, federal prosecution of cases and the expertise of other agents with electronic investigation experience. The center also will encourage cooperation between high-tech firms, utilities, financial institutions and law enforcement.

Similar centers have been created in New York City, San Diego and Texas, but this is the first statewide center.

E-Signatures for an E-World

Electronic commerce continues to grow--albeit slowly. In 2001, $37.7 billion, or 1.2 percent of the total $3.16 trillion U.S. retail were done online, according to an U.S. Department of Commerce report.

A recent Pew Internet & American Life study found that more than 30 million of the 109 million Americans who use the 'Net bought gifts online during the 2002 holiday season. This is an increase of more than one million compared to 2001. The project study authors believe the increase indicates that Internet users' trust and confidence in e-commerce is growing as the users gain Internet experience.

The incremental growth of e-commerce coincides with the low use of electronic signatures. In a survey of 550 companies, only 10 percent reported that they use electronic signatures, according to GartnerG2, a research and consulting company. The figure is expected to double in the next 18 to 24 months.

State legislatures have been active in passing measures to validate electronic signatures in order to support electronic commerce. By the end of 2002, 40 states had passed legislation on electronic signatures based on the Uniform Electronic Transactions Act (UETA), developed by the National Conference of Commissioners on Uniform State Laws (NCCUSL). However, experts claim that concerns regarding the security and privacy of electronic signatures hinder current usage of e-signatures. Given the rapid growth in usage of information technology, state policymakers will continue to examine ways to provide an effective legal infrastructure to support e-commerce.

For more information, please see "E-Signatures for an E-World" in the January 2003 issue of State Legislatures magazine.

"Do-Not-Spam" Lists

Twenty-six states have anti-spam laws that target unsolicited commercial or bulk e-mail. Most of these laws prohibit misleading or fraudulent commercial e-mails, require senders to label the message as an advertisement or to include information that allows recipients to opt out of future e-mails. Several states, however, are discussing a new approach to combat the ever-increasing problem of unwanted e-mail--no-call or no-contact lists--similar to telemarketing "no-call" laws.

Although no states have yet established "no-spam" lists by statute, Washington has developed a registry, co-sponsored by the Washington Attorney General and the Washington Association of Internet Service Providers (WAISP). The registry provides a way for Washington residents to identify themselves as a resident of the state. The state's anti-spam law prohibits sending Washington residents commercial e-mail with false or forged headers or misleading subject lines. Registering an e-mail address protects the resident's right to take individual action under the law and the state's right to jurisdiction. The list gives senders of unsolicited commercial e-mail a way to determine which e-mail addresses belong to Washington residents.

About half the states have introduced anti-spam legislation in 2003, and at least four of those states are looking at establishing "no-spam" lists or registries-- Colorado H.B. 1200, Indiana H.B. 1963, Missouri H.B. 228, New York A.B. 709 and A.B. 1292, and South Carolina H.B. 3140.

Voluntary "do-not-spam" lists, like the Direct Marketing Association's (DMA) E-Mail Preference Service are available to Web users, and lists backed by state laws may be more effective. However, maintaining current lists and tracking down spammers who don't abide by the law or use the lists can be time-consuming and difficult. For some states, however, it's a cause worth pursuing.

New Internet Privacy Project

NCSL is launching a new project on Internet Privacy through the NCSL Foundation for State Legislatures (FSL). This project will provide a forum for legislators, staff and FSL partners to explore Internet privacy issues and options. The first meeting will be in Boston, Massachusetts during the Spring Forum, April 24-27, 2003. For more information, contact Pam Greenberg pam.greenberg@ncsl.org

Legislators: How to Manage E-Mail and Build Effective Web Sites

A new publication and video designed to help legislators better manage e-communications are now available. The E-Communications project, sponsored by NCSL Foundation for State Legislatures, identified strategies to assist legislators in managing a growing volume of e-mail and best practices for creating easy-to-access Web sites that encourage citizen access. California Senator Debra Bowen chaired the E-Communications project, and sponsors include AOL/Time Warner, EDS, IBM Institute of Electronic Government, Lexis Law Publishing, and Microsoft. For more information about the project, contact Pam Greenberg pam.greenberg@ncsl.org
 

E-Testimony Popular in Hawaii

Hawaii's Public Access Room (PAR) provides facilities, services and equipment to enhance the ability of Hawaii citizens to participate in the legislative process. For example, the room provides computers and office supplies citizens can use to prepare testimony for legislative committees, including workspace for writing, researching and conducting small meetings, and access to computer terminals to track bills on the legislature's Web site and research issues on the Internet.

PAR has long been an unofficial resource for delivering public testimony to the legislature. Material faxed or brought in is photocopied and delivered to the appropriate committee by PAR staff. Beginning with the 2000 legislative session, PAR began taking in email testimony--102 pieces that year. E-mail testimony increased to 483 pieces in 2001 and to well over 1,700 in 2002. The sharp increase in testimony in 2002 may be attributable to the dedicated mail address for testimony, which is provided on the home page of the PAR Web site. After the email testimony is submitted, the PAR sends a confirmation notice to the author and makes photocopies for committee members.

Individual legislative committees in other states have also accepted e-mail testimony. For example, California's Joint Committee to Develop a Master Plan for Education-Kindergarten through University Web site invites e-mail testimony. Information on how to submit e-testimony is provided and all e-testimony submitted is available for viewing on the Web site. The committee also promoted an online dialog, designed to increase public participation in development of the state's Master Plan.

An End to Spamming for Verizon Customers

First it was the annoying telemarketing company calling your home at dinner. Then it was the junk e-mail messages, or "spam," being sent to your computer or to your cellular telephone. But, in a settlement reached in November 2002, one of the nation's largest abusers of bulk e-mail has been barred from sending messages to customers of Verizon. Verizon's 1.64 million customers in 40 states will no longer receive spam from Alan Ralsky's Michigan-based company.  Additional Benefits LLC. The company sent solicitations for diet pills, on-line casinos and companies that promise to fix bad credit. Verizon's complaint stated Additional Benefits LLC broke federal and Virginia law and clogged Verizon's network with illegitimate e-mail messages. America Online and EarthLink have won settlements on grounds similar to those stated in the Verizon lawsuit.

According to the Verizon complaint, these messages violated Virginia state laws (Virginia Code §§ 18.2-152.4, 18.2-152.12) prohibiting unsolicited bulk e-mail sent to Internet service providers that have policies against spam. Twenty-six states have anti-spam laws aimed at unsolicited e-mail messages.

Spam is also becoming a problem for cellular telephone users. Spammers send unsolicited text messages to cellular telephones or pagers, so those who have cellular telephone plans that charge for text messages end up paying for these unwanted ads. However, two states--California and Pennsylvania--now ban the sending of unsolicited text messages to cellular telephones. California's law was passed in September 2002 and Pennsylvania's law in December 2002.

On December 18, 2002, the Federal Trade Commission (FTC) announced plans to establish a national registry where consumers who did not want telemarketing calls could list their telephone numbers. The plan would block about 80 percent of unwanted calls to those who put their names on the list. However, calls within one state, rather than across state lines, and all calls for charities, political candidates and market research and public opinion surveys not included in the ban would be. The FTC has asked Congress for approval to impose $16 million in fees on telemarketers to establish the system. It is unclear as of January 2003 whether the FTC has the legal authority to carry out its proposal.

Interoperability

A recent report revealed that up to 7.5% of the wireless text messages sent were not received within 120 seconds and were considered "lost." Unfortunately, public emergency agencies have had similar sobering experiences with critical wireless messages. The need has never been greater for seamless, coordinated, and integrated public safety communications. State policy makers are addressing this issue with several state plans.

At least 13 states provide for public safety communication funding or state oversight provisions. For example, Colorado (C.R.S. 24-30-908.5) created a public safety communications trust fund in 1998 that is to be used to satisfy the requirements of the Federal Communication Commission's public safety national plan. The statute also requires the purchase of equipment that meets emerging technical standards for systems interoperability and open network architecture.

Since the tragic events of September 11, 2001, at least eight states have passed interoperability legislation. In September 2002, California (A.B. 2018) lawmakers passed legislation that requires the state Public Safety Radio Planning Committee to have the primary responsibility in state government for developing and implementing a statewide integrated public safety communication system that facilitates interoperability and other uses of the public safety spectrum with local and federal agencies. In 2002, New Hampshire (S.B. 441) established a committee to study the interoperability of state agency communications.

NCSL has created a link on the Protecting Democracy Web site that offers a summary of 2002 state legislation, meetings, and resources on this critical topic.