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News From the States

Winter 2000/2001

CONTENTS

COMMITTEE PROJECTS

In January, the Communications and Information Policy Committee will publish the 2000 Information Technology and Internet Laws Passed and the 2000 Telecommunications Laws Passed reports. Covering approximately 400 laws, these reports identify new state laws regarding electronic commerce, electronic government, computer crime, integrated criminal justice, Internet and privacy, cable television, and telecommunications regulation. Draft copies of the reports are available through the Committee web site. For comments or suggestions about these draft reports, contact Jo Anne Bourquard by January 10^th.

COMMUNICATIONS AND INFORMATION POLICY COMMITTEE WINTER MEETING, DECEMBER 13-15, 2000

NCSL's Communications and Information Policy Committee met in Washington, DC December 13-15, 2000, to discuss identity theft, consumer issues in the electronic marketplace, how technology is changing legislative communications and consumer privacy. These programs are available in streaming video through the committee web site, thanks to the generosity of IBM's Institute of Electronic Government. Electronic copies of handouts are available through the committee site also. In addition, during the winter meeting, the committee sponsored tours of America Online and the IBM Institute of Electronic Government. The Committee's next meeting will be March 22-25, 2001, in Costa Mesa, California. For more information about the Committee, contact Jo Anne Bourquard.

ELECTRONIC GOVERNMENT

With the expansion of electronic government services, more states are developing Internet portals for their citizens. To date, at least 20 states have developed portals for accessing material on the web. For example, Indiana, North Carolina, Pennsylvania, Texas, and Washington have developed web portals for their government services. States like Arizona and New York are in the process of developing portals.

The appeal of portals is due in part to the one-stop design as well as the simplicity of design. Through the development of a portal, a state government can provide one-stop shopping for its citizens to access government services. In addition, portals typically do not require the replacement of the previous existing systems; a portal adds another layer to the infrastructure without all of the expense of completely revamping the system.

-- Submitted by Heather Morton

LEGISLATURES JOIN FORCES TO DEVELOP COMMON IT STANDARDS

The Multistate Legislative Document Management Project was created by NCSL in the spring of 1999 to address a crisis and to use that situation as an opportunity. TextDBMS, the document preparation software used by a number of state legislatures, announced that it would no longer upgrade or support the product. In addition to addressing the immediate problem of finding new software, the project steering committee recognized that there was an opportunity for states to help each other by taking advantage of common experiences in meeting the same needs. Each legislature does essentially the same things, albeit with differences in names and details, and each therefore has similar basic data processing needs.

The project formed a working group to produce models of bills, calendars, journals, and other legislative documents using elements common to all that might allow states to work together in developing software and sharing information. Version 1.0 of a model for bills was formally adopted by the project in March 2000. Additional models for calendars, journals, and other legislative documents have been prepared and reviewed in the same way and will be approved soon.

The model is written in a computer industry standard that allows data stored under it to work with products of different vendors and eliminates the need for extensive conversions of data to use that data for different purposes. Standards for computer software are like standards for other things. The greater the number of states that have adopted a standard, the easier it is for states to share information among themselves, and the more likely it is that vendors will build products to that standard. When more vendors build products to that standard, the easier it will be to compare products, and the more likely that the costs of developing products will be shared by states rather than each state paying for a product hand-built from scratch. In addition, it will be easier for states to help each other customize products and to find replacements when needed.

The Multistate Legislative Document Management Project is encouraging states to adopt these models and to become involved in future efforts of the project. A new report describing how the models work and additional background about the project are available on the project web site.

-- Submitted by the Multistate Legislative Document Management Project Steering Committee

GOVADS PUTS THE ADS IN "GOV"

An "official" government web page with banner ads? That's the intention of govAds, the country's first Internet advertising network for government web sites. GovAds, a division of eGovNet, offers maintainers of government web sites a method for supplementing public funding with sponsorship revenue.

For a government or agency, this can be a resource to raise income without any costs to the public. GovAds is already providing the City and County of Honolulu with an e-commerce portal site, and is developing the pilot project for Florida's Department of Business and Professional Regulation. And most recently, the nation's "Most Wired City"--Salt Lake City--announced its selection of govAds to provide sponsors for the city's web site.

However, purists of the Internet are concerned with issues such as implication of endorsement, web site integrity and the commercialization of the Net- and government web pages are thought to be exempt from the blitzkrieg of advertising. Most governments use taxpayer dollars and charge transaction fees, thus avoiding the necessity of sponsorship. But as the need for revenue continues, they may feel compelled to contemplate advertising even while the debate grows over implied endorsements of advertisers' products or services.

So as the discussion continues, you soon may be able to have your government web site--and a Coke and a smile.

-- Submitted by Janna Goodwin

Addressing the complexity of electronic government, Washington state has created a how-to guide for building e-government applications for its state agencies, boards and commissions. The web site known as ATOM - Application Template and Outfitting Model - provides state policies and guidelines on digital signatures, privacy, security, payments, archiving, and architecture. Located at www.wa.gov/dis/e-gov/atom, the web site is detailed and comprehensive so that no step is missed from design to deployment and maintenance for government web pages and applications.

-- Submitted by Heather Morton

Seeking to improve the way government professionals use information, the Center for Technology in Government (CTG) has developed the Insider's Guide to Using Information in Government. Drawing from the experiences of New York agencies, the Insider's Guide provides practical advice on six related topics: strategy, policy, data, cost, skills, and technology. In addition, the Insider's Guide utilizes eight case studies to further illustrate the six topics. To access the web-based resource, go to www.ctg.albany.edu/guides/usinginfo.

-- Submitted by Heather Morton

Twenty-four states enacted legislation regarding integration of their criminal justice systems. Eighteen laws in California, Connecticut, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Hampshire, New York, Tennessee, Utah, Vermont, and Washington were enacted dealing with what information to include in integrated justice systems. Ten laws were passed in Delaware, Florida, Georgia, Kentucky, Minnesota, New Mexico, and Oklahoma to address the management of integrated criminal justice systems.

Seven states dealt with the issue of who may access criminal justice information shared through the integrated systems. For example, Michigan authorized school administrators to access its law enforcement information network for vehicle registrations, while Colorado authorized open communications between state agencies, including criminal justice agencies, and educators to maintain safe schools. Colorado, Connecticut, Minnesota, Nebraska, and Virginia enacted legislation dealing with what agencies may share information and how much information can be shared. And, Georgia prescribed conditions under which the Georgia Crime Information Center may disseminate criminal history records.

Finally, Colorado, Connecticut, Iowa, Missouri, and South Carolina ratified the National Crime Prevention and Privacy Compact.

Descriptions of each bill are included in the 2000 Information Technology and Internet Laws report to be published by the Communications and Information Technology Committee.

-- Submitted by Heather Morton

TELECOMMUNICATIONS

Over 50 years ago AT&T designed the current area code system. At that time, only one telephone company needed numbers. Calls were routed to switches based on three digit area codes and the first three digits of the seven-digit local telephone number. The Telecommunications Act of 1996 opened the doors of competition. Now, the number of companies that must have their own telephone number inventory has increased dramatically. The smallest inventory, or "block," is 10,000 numbers. If these available numbers are exhausted, one or more digits will need to be added to the current ten-digit dialing pattern. The cost estimates of this expansion range from $50 to $150 billion.

The Federal Communications Commission (FCC) was granted jurisdiction over telephone number administration in 1996. It is now considering such ideas as improving the information on how telephone numbers are being used, requiring telephone companies to prove that they need new numbers and giving telephone numbers in smaller blocks. And, the agency will consider various proposals to ensure telephone carriers use all the numbers they have in an efficient manner. The FCC recently chose not to require Americans to include the three-digit area code when making local calls

There are approximately 5.5 billion telephone numbers in the United States and one-third of them have been assigned to telephone carriers for distribution to their customers. At this rate, the North American Numbering Plan could run out of available numbers between 2006 and 2012. This capacity can be increased by 25 percent if 10-digit dialing is ordered by the FCC in the future.

At least six states currently require 10-digit dialing when making calls in parts of or throughout the state, including Colorado, Georgia, Maryland, Pennsylvania, Texas and Virginia. And, some metropolitan areas that cross state lines and area codes, like Washington, DC and Kansas City, Kansas/Missouri, require consumers to dial area codes before the seven-digit telephone number to complete their call.

Action by the FCC and the telecommunications industry is critical because while only nine area codes were activated between 1984 and 1994, 113 area codes were activated from 1996 through March 2000. And another 15 were anticipated to be in use by the end of 2000.

-- Submitted by Bob Boerner

BEWARE!: "SLAMMING" RULES NOW IN EFFECT

"Slamming" is the unauthorized change of consumer's preferred telephone carrier. The practice is the single largest source of complaints to the Federal Communications Commission (FCC). The FCC recently announced that the revised telephone slamming liability rules adopted earlier this year would take effect on November 28, 2000.

According to some analysts, the fine and refund authority granted to both the states and the FCC will take the profit out of slamming and provide relief for consumers.

Currently, 32 states have filed letters opting into the program, including Alabama, Arkansas, Connecticut, Colorado, the District of Columbia, Florida, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Montana, Nebraska, Nevada, New York, New Hampshire, North Carolina, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Washington and Wyoming. Idaho and North Dakota are likely to opt in shortly after additional procedures are completed.

-- Submitted by Bob Boerner

STATE LEGISLATURES PASS NEW 9-1-1 AND E 9-1-1 LEGISLATION

At least 13 states passed legislation in 2000 providing for the funding of state 9-1-1 emergency systems or authorizing states to improve the effectiveness of their systems. These states include: Alabama, California, Colorado, Connecticut, Florida, Maine, Massachusetts, Mississippi, Ohio, Oklahoma, Rhode Island, Utah and Virginia. For example, Florida S.B. 1748 (Chapter No. 334) establishes a cohesive statewide emergency telephone number "911" plan to reduce the response time to situations requiring law enforcement, fire, medical, rescue and other emergency services.

And at least eight states passed legislation in 2000 providing for the creation of or funding of enhanced 9-1-1 services. These states include Indiana, Kansas, Maine, New Hampshire, Oklahoma, South Carolina, Virginia and Washington. For example, Virginia S.B. 148 (Chapter 1064) establishes the Wireless E-9-1-1 Services Board and the Public Safety Communications Division of the Department of Technology Planning and continues the Wireless E-9-1-1 special fund.

Descriptions of these bills and others are included in the 2000 Telecommunications Laws publication to be published by the ASI Communication and Information Policy Committee in 2001.

-- Submitted by Bob Boerner

INTERNET

Many low-income, rural and minority households are now getting connected to the Internet at a faster rate than the national average. The U.S. Commerce Department's new report, Falling Through the Net, Toward Digital Inclusion, is the fourth in a series of reports measuring American's access to computers and the Internet. According to the report, 41.5 percent of all households now have access to the Internet, an increase of 58 percent since the government's last study in December 1998. And the good news is that the "digital divide" separating those who have traditionally lagged behind in access is beginning to close. Groups that have traditionally been part of the "have nots" are now making dramatic gains:

• In rural households, 38.9 percent now have Internet access, an increase of 75 percent.
• Black households now are more than twice as likely to have Internet access than they were in December 1998; 23.5 percent now have access.
• Hispanic households had similar gains, with 23.6 percent now having access to the Internet.

-- Submitted by Pam Greenberg

FTC PILOTS JOINT INTERNET CRIME TASK FORCE

Make $$ From Home!!! FREE Trip to Sunny Florida!!! Let Us Build Your Web site!!!

Sound familiar? Chances are, if you've ever used the World Wide Web or email, you've witnessed these propositions first-hand. And according to the Federal Trade Commission (FTC), they are among the top ten cons on the Internet. Located at http://www.ftc.gov/bcp/conline/edcams/dotcon/index.html, the web site lists the following among the top ten: Auction fraud, long-term ISP contracts, web site design schemes, credit card cramming, multi-level marketing/pyramind scams, work-at-home opportunities, vacation swindles, pay-per-call solicitation and "miracle" cures/health care promises.

This fall, the FTC officially united with 23 state offices and nine international consumer protection organizations specifically targeting these Internet scams. Participants include the Attorneys General from Arizona, Colorado, Florida, Iowa, Illinois, Indiana, Louisiana, Massachusetts, Maryland, Michigan, Missouri, North Carolina, New Jersey, Nevada, Ohio, Oregon, Pennsylvania, Tennessee, Texas and Washington. Along with the West Virginia consumer protection office, Oklahoma Department of Securities and Washington State Securities Division and the state of Wisconsin, this formidable task force has already brought over 251 actions against online con artists.

However, the Joint Task Force has its work cut out for it; 251 actions is a minuscule proportion of the nearly 285,000 complaints that the FTC has received--and that's just a portion of cases that have been actually reported. The Task Force hopes to prosecute more cases and raise awareness of the crimes, which would make Net scams more public and lift the veil of anonymity from potential cons.

-- Submitted by Janna Goodwin

FEDERAL JUDGE OVERTURNS VIRGINIA NET PORN LAW

An August 2000 federal court ruling, PSINET v. Chapman, struck down a 1999 Virginia act

aimed at protecting minors from "harmful" electronic materials. With the 1999 act, the legislature amended an existing law that prohibits the display of "sexually explicit nudity, sexual conduct or sadomasochistic abuse and [material] which is harmful to juveniles." The 1999 act amended the law to include displays of this type of material by way of an "electronic file or message." The court ruled that the law violates First Amendment free-speech protections and hampers interstate commerce. The decision is the latest in a string of similar federal court decisions relating to Internet regulation. See previous News from the States articles, "Regulating the Internet: Censoring or Safeguarding?" (Winter 1998) and "Courts Act on Internet Pornography Issues" (Spring 1999).

-- Submitted by Pam Greenberg

A SAFE HARBOR FOR EUROPEAN NETIZENS

A new international Internet privacy agreement may mean that some U.S. companies will provide greater protection for their European customers than for U.S. citizens.

The European Union's (EU) Data Protection Directive, which went into effect in October 1998, provides that companies may not transmit data to non- EU countries that do not sufficiently protect individuals' private information. Until recently, the United States was among the countries without sufficient protections. U.S. companies with European customers faced possible interruptions in business or even prosecution by European authorities under European privacy laws.

However, on November 1, 2000, an international privacy agreement took effect, setting up a compromise system that will allow U.S. companies to avoid European sanctions if they abide by seven "safe-harbor" principles, http://www.export.gov/safeharbor/SafeHarborInfo.htm#Requirements. Safe Harbor sets up a framework to certify companies that voluntarily comply with the principles.

U.S. Commerce Department and EU officials will be monitoring the program to see if American companies join. If the program is not successful, U.S. companies may face fines and the cutoff of data from EU countries.

-- Submitted by Pam Greenberg

CONGRESS MANDATES INTERNET FILTERING IN SCHOOLS AND LIBRARIES

Congress passed a new bill in late December requiring schools and libraries to install filtering or blocking software to protect minors from obscene materials on the web. The law applies to schools and libraries that receive e-rate funding, which reimburses for costs related to connecting to the Internet. Senator John McCain's Children's Internet Protection Act passed as part of the appropriations bill for the Departments of Labor and Health and Human Services. The law allows schools and libraries to choose their own filtering technology. President Clinton signed the appropriations act, despite his opposition to the filtering mandate.

-- Submitted by Pam Greenberg

OTHER

Legislation debated in the 106^th Congress would have severely restricted governmental use of Social Security numbers, their derivatives and other personal identifiers. Although NCSL successfully lobbied against language that would have preempted state privacy laws and created a host of new unfunded federal mandates, the final appropriations bill for commerce/state/justice, H.R. 4942, still contained carve outs for special interests that would have preempted some states' laws. However, H.R. 4577 contains language that strikes the provision. Representative Clay Shaw (R-Florida) has initiated a Government Accounting Office study to develop comprehensive information on governmental use of personal identifiers; further action on this issue can be expected in the 107^th Congress. For more information, contact Sheri Steisel or Gerri Madrid.

LIMITED CIRCUMVENTION

In 1998, President Clinton signed into law the Digital Millennium Copyright Act (DMCA), which implements two 1996 World Intellectual Property Organization (WIPO) treaties: the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty. The goal of the DMCA is to protect authors and other copyright owners from breakthroughs of any technological safeguards designed to prevent unauthorized uses of their works. Section 1201 of the DMCA states that "No person shall circumvent a technological measure that effectively controls access to a work protected under this title."

However, Congress wanted to ensure that the public could retain the ability to engage in non-infringing uses of copyrighted material, such as fair use. As a result of the DMCA, the Register of Copyrights was directed to conduct a rulemaking procedure to make recommendations to the Librarian of Congress as to whether there should be any exemptions for the prohibition against circumvention of technological safeguards. In October, upon the recommendation of the Register of Copyrights, the Librarian of Congress issued exemptions for two classes of copyrighted works from the prohibition of section 1201:

1. Compilations consisting of lists of web sites blocked by filtering software applications; and
2. Literary works, including computer programs and databases, protected by access control mechanisms that fail to permit access because of malfunction, damage or obsolescence.

These exemptions are effective until October 28, 2003. Before the three-year period expires, the Register of Copyrights will initiate a new rulemaking proceeding to address whether additional classes of works should be exempted.

-- Submitted by Heather Morton

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