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News From the States

Spring 2002

Index of Articles

Communications and Information Policy Committee Update
 
Information Policy, Technology & The Internet

State Web Site Privacy Policies and Practices

States Take Action against Spam

No More Online Funny Business!

E-Commerce: UETA Update

Online Consumer Complaints Differ

Judge Says Hacker's Damages Do Not Fall Under Federal Crime

Freedom of Information in the States after September 11

Telecommunications

Electronic Surveillance Update

An Alternative to 9-1-1: A Non-Emergency Telephone System

Cable Modems and the FCC's Recent Ruling

Recent Broadband Infrastructure Measures

COMMUNICATIONS AND INFORMATION POLICY COMMITTEE UPDATE

The Committee session, This Old Web Page, featured experts who provided advice about the content and design of legislators' personal Web pages. The Committee also sponsored sessions in which experts provided one-on-one advice to legislators about ways to build new Web pages or improve existing ones. For more information, see the Committee sponsored E-Communications project.

The Committee met jointly with the Criminal Justice Committee to address ways to ensure an uninterrupted flow of communications among first responders, the importance of integrating justice information, and the impact of the U.S. Patriot Act on electronic surveillance and wiretapping practices. Spam was also the subject of Committee examination in a session outlining state laws and court challenges.

The next CIP Committee meeting will be during the NCSL Annual Meeting in Denver, Colorado, July 23-27, 2002. The Committee agenda, which will include programs on e-mail privacy, cyberschools, and intelligent transportation systems, will be mailed and posted on the Committee web site later this month. For more information about the CIP Committee, see the Committee Web page or contact Jo Anne Bourquard. Jo.Anne.Bourquard@ncsl.org

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INFORMATION POLICY, TECHNOLOGY & THE INTERNET

A report developed for the Colorado Information Privacy Task Force provides an overview of state Web site privacy practices and compares the privacy policies of all fifty states. The report, The State of State Government Internet Privacy, by the law firm of Faegre & Benson, was prepared for the task force's 2001 study of the appropriate collection, storage and transfer of data by and among public and private information systems. The report highlights issues states should consider when developing a privacy policy, including considerations related to open records act implications, consistency between the handling of electronic information and paper equivalents, handling of information by third-party contractors, and consistency among various state agencies' practices. It also sets forth a list of recommendations for states developing privacy policies.

The California Supreme Court in April let stand a California Court of Appeals decision that upheld the state's anti-spam law. The California decision, along with another favorable ruling in Washington, may have prompted some states to take another look at anti-spam legislation. Spam bills were introduced in at least 26 states in 2002. So far this year, legislation has been enacted in South Dakota and Utah, and a Maryland bill has passed the legislature but awaits the governor's signature. Twenty-two states currently have anti-spam laws. NCSL recently videotaped a session, "States Send a Message to Spammers," held at the April ASI Spring Meeting. Handouts from speakers are available online.

- Submitted by Pam Greenberg

The number of people utilizing the Internet is growing, and as people gain experience, their Internet usage gets more serious and functional. In a recent report by the Pew Internet & American Life Project, Getting Serious Online, researchers found that Internet users are generally spending less time on the Internet per session, but are doing more things, including shopping and making financial transactions. Using a longitudinal approach, the researchers re-interviewed individuals from a March 2000 survey to track how people's Internet usage changes over time.

With approximately 55 million Americans going online from work, the Internet has become highly useful for work-related tasks. On a typical day, 36 percent of Americans with Internet access on the job were doing work-related research in March 2001, up from 25 percent a year earlier. Further, 44 percent of those who have Internet access at work say online tools improve their ability to do their jobs.

The share of Internet users who bought products online grew from 47 percent of Internet users in March 2000 to 53 percent in March 2001. The proportion that purchased travel services grew from 34 percent to 42 percent. People who used online banking grew from 17 percent to 23 percent.

As individuals gain Internet experience, they spend less time doing other activities. For example, 29 percent of the Internet users who have bought something online said their Internet use has resulted in their spending less time shopping in stores. Twenty-five percent of Internet users said they spend less time watching television because of the Internet. And, 14 percent of Internet users said their time online has decreased the time they spend reading newspapers.

- Submitted by Heather Morton

Developed by the National Conference of Commissioners on Uniform State Laws (NCCUSL), the Uniform Electronic Transactions Act (UETA) has been adopted by 38 states by the end of 2001. UETA provides a legal framework for the use of electronic signatures and records in government or business transactions.

Six states, Colorado, Connecticut, Massachusetts, Missouri, Vermont, Wisconsin (A.B. 144 and S.B. 55) and the District of Columbia have pending legislation to adopt UETA in 2002.

California and Hawaii have pending legislation that amends their existing UETA laws. California's bill would enact the Consumer Electronic Transactions Act to comply with the federal Electronic Signatures in Global and National Commerce Act (E-SIGN), which establishes the validity of electronic records and signatures. Hawaii's bill adds provisions regarding electronic commerce security. Virginia has enacted a revision to its law to recognize the provision in UETA that prohibits a signature from being denied legal effect or enforceability solely because it is in electronic form.

For additional information regarding UETA or electronic commerce, please go to NCSL's electronic commerce Web page:

- Submitted by Heather Morton

The Internet Fraud Complaint Center (IFCC), a partnership between the FBI and the National White Collar Crime Center Internet, reports that auction fraud was the top Internet consumer complaint in 2001. Approximately 43 percent of all cases of Internet fraud reported last year resulted from online auctions gone bad. The report also revealed that consumers continue to fall prey to the e-mail schemes that entices recipient with the false promises of profits in exchange for helping the sender recover millions of dollars in frozen or hidden assets. The IFCC said credit card fraud and confidence fraud rounded out the top five categories of complaints referred to law enforcement last year.

These figures contrast with statistics released earlier this year by the Federal Trade Commission (FTC), which claimed identity theft was the leading consumer complaint in 2001. According to the FTC, ID theft accounted for nearly 42 percent of consumer fraud complaints in 2001. Internet auction fraud placed a remote second by the FTC's report, making up just 10 percent of all fraud complaints.

The FTC's numbers were based on the breakdown of more than 204,000 consumer complaints, while the IFCC gathered its numbers from around 50,000 complaints. Also, the IFCC's primary goal was to track Internet fraud, whereas the FTC primarily traces more general consumer fraud cases.

- Submitted by Janna Goodwin

The second-ever conviction under federal laws to discourage computer hackers was nullified in March when a Miami judge ruled that an e-mail virus launched didn't do enough damage to rank as a federal crime.

Last September, a jury found Herbert Pierre-Louis guilty under the anti-hacking law known as the Computer Fraud and Abuse Act for intentionally sending a virus to offices of his then-employer, Purity Wholesale Grocers. The law requires that a hacker's actions cause more than $5,000 in damage, and the business had claimed that the 1998 incident cost $75,000 when it had to shut down networks at its locations in New York, Washington and Minnesota. Congress had updated the law in 2001 to include lost profits from suspended operations among the damage hackers might cause. But the U.S. District judge ruled that any damages allowed under the law in place when Pierre-Louis finally was arrested in June 2000 did not reach $5,000.

The ruling came before what was to be Pierre-Louis' sentencing and after the jury's guilty verdict. The maximum penalty under the law is 3.5 years in federal prison, a fine of up to $25,000 and mandatory restitution.

- Submitted by Janna Goodwin

Since Sept. 11 at least 17 states have proposed legislation that addresses the issue of open records. The bills look at keeping secret any evacuation plans, emergency response plans, security measures or emergency health procedures. Also to be hidden are state security plans and manuals. Some states have proposed exemptions from public record for architectural drawings of city buildings and infrastructure, such as utility plants, bridges, water lines, sewer lines and transportation systems.

New Florida laws exempt from public records security system plans for state property and exempt data on pharmaceutical materials for response to terrorism. A New Hampshire bill alters the state's right-to-know law excluding the public from discussions related to preparations for response to terrorist acts. Many measures, however, have failed. In Indiana, the House voted to uphold the governor's veto of a bill that would have allowed legislators and the Legislative Services Agency to decide for themselves what records would be accessible and what records would be secret. The proposals have alarmed journalists and advocates of open government who believe that many of the plans are too general and are an impulsive reaction that may be detrimental and a rollback of the "open to the public" concept.

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TELECOMMUNICATIONS

During the 2001-02 legislative sessions, slightly over half the states have introduced electronic surveillance bills, many in reaction to the September 11^th. At least five states--Georgia, Maryland, Minnesota, New Jersey and Louisiana--have legislation that includes electronic surveillance in its terrorism and homeland defense acts. And at least two states--Arizona and Hawaii--specifically attempt to conform state statutes with the federal act recently passed after 9/11/01, the USA PATRIOT Act.

A majority of the states with pending bills expand the definition of crimes that allow electronic surveillance or change the procedure for law enforcement to obtain a permit. A few states--California, Georgia, Idaho and Illinois--amend what types of communications can be tapped. At least five states--Colorado, Idaho, Kentucky, Michigan and Minnesota--increase the penalties for unauthorized interception of a communication. And at least two states (Massachusetts and South Carolina) alter their states "consent" statute.

A handful of states have already passed legislation dealing with electronic surveillance, or "wiretapping." Florida revised various laws on the interception of communications by a law enforcement officer, while Idaho defined "electronic communications" and provided that the unlawful interception of electronic communications is a felony. Louisiana and Maryland enacted anti-terrorism legislation expanding the use of electronic surveillance. Virginia has passed several bills, one of which broadens Virginia's capabilities to respond to terrorism. The other Virginia enactment permits town police department to monitor an interception.

NCSL recently held a session at the April ASI Spring Meeting in New Orleans on electronic surveillance, and it also maintains a Web site that monitors laws and legislation.

The numbers 211 and 311 have been considered by state policymakers as potential non-emergency telephone numbers for use in the states since 1996.

New Hampshire (H.B. 707) lawmakers passed legislation in 2001 that establishes a committee to study the use of 211 as a uniform community service information and referral number. In Texas, the Legislature approved a resolution (H.C.R. 109) calling for the establishment of a 211 information and referral telephone network to provide access to health and human service programs in the state. California (A.B. 669) and Connecticut (S.B. 308) legislators are considering measures in 2002 that authorize local non-emergency telephone systems and a state-wide service.

Since the tragic events of September 11, cities have been flooded with calls about anthrax and terrorism and are also quickly realizing the benefits of a non-emergency telephone system as a backup for 911. Baltimore became the first city to introduce a 311 system for police non-emergencies in 1996. And, the city of Austin, Texas recently reduced the number of non-emergency calls to 911 by 31 percent by using 311 to take up the slack for the other emergency calls.

The Federal Communications Commission (FCC) recently exempted cable television service providers from rules that apply to telephone companies-the cable companies need not provide access to their lines that offer high-speed Internet service. This decision is significant since nearly 13 percent of Americans access the Internet through a cable modem (80 percent use the regular dial-up telephone service and nearly 7 percent use the telephone company-provided digital subscriber line service).

In the Declaratory Ruling, adopted on March 14, 2002, the FCC concluded that cable modem services are properly classified as an "interstate information service," not a "cable service," and is therefore subject to FCC jurisdiction. But, the FCC said that cable modem service does not contain a separate "telecommunications service" offering and is not subject to common carrier regulation. The federal agency noted its decision will promote broadband deployment, which should result in lower prices, better quality and more consumer choices.

Broadband access to the Internet is "always on" and provides data nearly 2,000 times faster than current dial-up modems. Some observers offer the promise of this technology as a solution to closing the "digital divide." A limited number of subsidies and tax credits have been offered to companies that provide this technology. Now, more than 11 million households have broadband service through cable television lines, satellite television hook-ups or telephone wires that have been transformed into digital subscriber lines. According to some industry analysts, 54 million homes will have the service by 2006, even without state incentives.

Idaho, Kansas, Maine and Nebraska passed related broadband legislation in 2001. At least three states are considering infrastructure legislation in 2002. Michigan S.B. 881 creates the Michigan Broadband Development Authority to assist in the financing and expansion of broadband infrastructure services in the state, and requires the authority to evaluate all types of technologies to provides the widest dissemination of the service. New York A.B. 10277 enacts the Telecommunication and Internet Access Development Authority Act and creates the Telecommunication and Internet Access Development Authority. The bill grants the power to the authority to issue and reissue bonds and notes, requires the authority to study Internet and broadband access throughout the state, and makes other provisions necessary for the successful implementation of the new authority. Virginia H.B. 1226 creates the Office of the Broadband Deployment with responsibilities to coordinate all public and quasi-public efforts to deploy broadband telecommunications throughout the Commonwealth and to seek public, quasi-public and private funding to carry out its mission. The Office will be required to annually report to the Governor, General Assembly and Joint Commission on Technology and Science. The Secretary of Technology will be responsible for the Office.

- Submitted by Bob Boerner