News from the States

This online newsletter is a product of NCSL's Communications and Information Policy Committee.

Spring 2000

CONTENTS

Protection for Consumers from Telephone Abuses
States Can't Sell DMV Databases
9-1-1 and Emergency Telephone Services
How Wide the Digital Divide?
California Club Cards
Arizona Holds Internet Primary
GSA Releases New Y2K Report
Update on UETA & UCITA
Communications and Information Policy Committee

Updated 3-8-00

Protection for Consumers from Telephone Abuses

Telephone fraud, telemarketing abuse, and unfair business practices over the telephone continue to occur throughout the country. At least six states (Arizona, Georgia, Hawaii, Nebraska, South Carolina, and Texas) have enacted "do-not-call" list legislation that prohibits certain telemarketers from calling consumers whose names appear on lists or in databases. And, over half the states have enacted broad telemarketing regulation statutes. Their language and enforcement provisions differ widely. All state attorney generals now have authority under the Telemarketing and Consumer Fraud and Abuse Act to investigate and pursue civil actions against telemarketers who practice deceptive or unfair business practices.

In 1999, at least five states (Hawaii, Illinois, Louisiana, Oregon, and Rhode Island) enacted measures that regulate telemarketing and fraudulent telephone practices. For example, Illinois H. B. 157 (Public Act No. 91-182) amends the state's Automatic Telephone Dialers Act, provides for a penalty for soliciting between 9:00 p.m. and 9:00 a.m. and for using an autodial without a consumer's consent. New Hampshire H. B. 325 prohibits the inclusion of unauthorized or deceptive charges for products or services on telephone bills (a practice commonly referred to as "cramming"). And, Louisiana H. B. 694 prohibits deceptive trade practices through the use of false or misleading listings in telephone directories.

- Submitted by Bob Boerner, NCSL

States Can't Sell DMV Databases

The U.S. Supreme Court has upheld a federal law that prevents states from selling personal information databases of licensed drivers and car owners. Chief Justice William Rehnquist said of the 1996 Drivers Privacy Protection Act (DPPA), it "was a straightforward federal regulation of state activity that raised no federalism issues" and that the law merely "regulates the states as owners of databases," an acceptable federal function. State freedom of information laws apply to nearly all other state records, not just Department of Motor Vehicles (DMV) records. The DPPA provides for an opt-out preference that allows applicants to prevent release of specific information. Many states also have opt-out provisions as part of their statutes. Some states are considering legislation to restrict the release of information even more than DPPA provisions impose. The federal act has not dissolved the controversy and public discussion about privacy of drivers' records.

- Submitted by Rita Thaemert, NCSL

9-1-1 and Emergency Telephone Services

In the late 1960's the President's Commission on Law Enforcement recommended that an emergency telephone number be established. The number sequence 9-1-1 was established and saved by AT&T for this purpose. The Office of Telecommunications Policy issued a national policy statement in 1973 that recognized the benefits of 9-1-1 and encouraged nationwide adoption of this number. Basic 9-1-1 service is now offered in virtually every community. Enhanced services, that include visual display of telephone numbers and addresses of callers for operators, are now being offered in many parts of the country.

State legislatures enacted a variety of bills in 1999 that further development of emergency telephone services or systems. For example, California A. B. 880 (Chapter 356) requires the Office of Emergency Services to procure and install mobile communication translators to enable response agencies to communicate effectively while operating on incompatible frequencies. California S. B. 669 (Chapter 677) directs the Communications Division of the Department of General Services to consult with city and local officials on 9-1-1 telephone service responsibilities. And, Illinois H. B. 1383 (Public Act No. 91-660) creates the Wireless Emergency Telephone Safety Act. Louisiana, Missouri, New York and Oregon enacted emergency telephone service-related legislation.

- Submitted by Bob Boerner, NCSL

How Wide the Digital Divide?

Government is providing more information and offering more services through the Internet, but recent studies indicate that not everyone has equal access to these benefits. A December 1999 U.S. Department of Commerce report, "Falling through the Net: Defining the Digital Divide," finds that the number of Americans with access to the Internet has grown rapidly. However, there is a widening gap in Internet access between those at upper and lower income levels, and between whites and blacks and Hispanics. Rural areas and central cities also fall behind in access to computers and the Internet.

Many high-tech companies, non-profit organizations, foundations, and community organizations are actively pursuing programs to address the digital divide. The Benton Foundation sponsors a Web site that provides information about many of these efforts. President Clinton has announced a number of federal initiatives and partnerships to help close the gap between technology "haves and have-nots, " many of them summarized on the Commerce Department's Web site.

An increasing number of states are considering the role of state government in addressing these access issues. For example, the California Senate recently held committee hearings on the issue, and Governor Gilmore of Virginia has announced a statewide effort in this area. A number of states have enacted legislation to improve rural Internet access. For example, Colorado passed the Rural Technology Enterprise Zone Act in 1998 to provide tax credits to companies that invest in improving Internet access in rural areas. Utah in 1999 established a Rural Telecommunications Task Force to review and make recommendations on ways to aid development of advanced communication services. Several states, including Delaware, Maryland, Minnesota, and Virginia, are working to build high speed networks to provide statewide or universal access to the Internet for their citizens.

- Submitted by Pam Greenberg, NCSL

California Club Cards

California has enacted the Supermarket Club Card Disclosure Act of 1999, which prohibits the issuer of a club card from requiring a card applicant to provide a drivers license number or a social security number in order to receive a discount card. The law also prohibits a club card issuer from sharing or selling personal identification information about cardholders, except in specified circumstances. In some parts of California, 75 percent of shoppers are supermarket club members. Violations of the law are punishable as "unfair competition" under the California Business and Professions Code. The law takes effect July 1, 2000.

There are two other related California bills pending. SB 129 is an "opt-in" bill that would, among other things, restrict organizations from collecting personal information unless an individual specifically consents. SB 417 would give a club card applicant the right to prohibit supermarkets from collecting and aggregating data about a consumer's buying habits and prohibit selling or sharing marketing information that contains a consumer's identity. This legislation also provides that violation would constitute a misdemeanor, subject to a $500 civil penalty.

- Submitted by Rita Thaemert, NCSL

Arizona Holds Internet Primary

Democratic voters in Arizona were granted permission by the Justice Department to allow computer voting in March's primary. Attorney General Janet Reno had no objections but did note concern over voter participation and the digital divide that separates the Internet haves and have-nots. Democrats arranged polling places where party voters could either fill out traditional paper ballots or vote at a computer terminal.

Officials hired a team of experts to fend off any hacking attacks that might skew the outcome. Advocates and party leaders hoped the Web will encourage and increase voter participation.

On Super Tuesday, when the system worked, thousands of Democrats were casting ballots as fast as one every five seconds, and votes streamed in at a rate of 20 a minute at its peak. However, some potential on-line voters encountered problems such as enabling cookies (text files of information) or simply logging into the site and "timing out." Many more were greeted with busy signals when they attempted to call the telephone help lines. Additional phone lines were installed as voting continued, and unanticipated glitches that are expected in a momental venture are being addressed accordingly.

The effort is a joint project with the Arizona Democratic Party and Election.com, which produced software that allowed voters to register on the Web.

- Submitted by Janna Goodwin, NCSL

GSA Releases New Y2K Report

The General Services Administration (GSA) Office of Intergovernmental Solutions (OIS) announced in early February the release of a new report, "The Many Silver Linings of the Year 2000 Challenges." The report describes the unanticipated benefits derived from government preparations of Y2K efforts, including focusing on technology management issues, critical system identification and modernization, cooperation between program and technology officials. The report can be downloaded from the OIS Web site.

- Submitted by Janna Goodwin, NCSL

Update on UETA & UCITA

With the rapid growth of e-commerce, state legislatures are considering new laws to provide consistent rules for the e-business world. Two new uniform acts dealing with electronic information and transactions were recently approved by the National Conference of Commissioners on Uniform State Laws (NCCUSL) and are under consideration in a number of states. The Uniform Electronic Transactions Act (UETA) gives electronic records and signatures the same legal standing as paper records and manual signatures. Enacted by California and Pennsylvania in 1999, it has passed both houses in Arizona, Indiana, Utah and Virginia in 2000. UETA bills are pending currently in Alabama, California, Colorado, the District of Columbia, Hawaii, Idaho, Kansas, Kentucky, Maryland, Minnesota, Nebraska, Ohio, Oklahoma, Rhode Island, Vermont and West Virginia.

The Uniform Computer Information Transactions Act (UCTIA), originally drafted as Article 2B of the UCC, but now a freestanding act, establishes rules for creating, modifying, transferring or licensing computer software and information. Critics charge that the act fails to provide protection for consumers because they can't see or negotiate terms before purchase. Supporters counter that software licensing offers flexibility in an industry that is expanding at an unparalleled velocity. UCITA is currently pending in the District of Columbia, Hawaii, Illinois, Maryland and Oklahoma. Virginia is the first state legislature to pass it.

To find the full text of these model acts, see the NCCUSL Web site, www.nccusl.org.

- Submitted by Jo Anne Bourquard, NCSL

Communications and Information Policy Committee

The next meeting of the Committee will be in Denver, March 31 - April 2, 2000. The program includes:

Tour & Briefing at US West Advanced Technology and Lucent Technology
E-Communications with Constituents
Colorado's Integrated Criminal Justice Information System
Rocky Mountain High Tech
Building Bridges: Legislatures Address the Digital Divide
New Laws for the Digital Age: Update on UETA & UCITA

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