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News from the States

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

Spring/Summer 2000



CONTENTS
NCSL Annual Meeting - July 15-20, 2000
Computer Crime Enactments
Inmate Access to the Internet
FTC Panel Issues Report on Online Privacy
Telephone Advertising Guidelines Issued by the FCC and FTC
Wyoming Wires Its Public Schools
Laying the Groundwork for Electronic Transactions and Information
Digital Music Discord
Return to Telecommunications and Information Policy

Last update: 6/2/00
 
 


NCSL Annual Meeting - July 15-20, 2000

Digital Divide, E-Government, Connecting on the Net and Telecommunications in the 21st Century are among the programs NCSL will hold on information policy, technology and telecommunications issues during the 26th Annual Meeting in Chicago, Illinois, July 15- 20, 2000. See the following agendas for more information: For general information about the meeting, see http://www.ncsl.org/am00/index.htm




Computer Crime Enactments

Continuing the trend from 1999, the significant areas for computer crime legislation in 2000 continue to be electronic harassment, identity theft, and obscene or pornographic materials.

Iowa, Oklahoma, and Virginia expanded the definitions and penalties relating to electronic harassment, while South Dakota enacted legislation creating the crime of identity theft, including theft of computer user names and identification information.

Oklahoma and South Dakota also addressed the issue of pornographic materials relating to minors. Oklahoma prohibited the use of a computer to make lewd proposals to a child and authorized the seizure and forfeiture of computer equipment used to produce obscene materials.  And, South Dakota expanded the prohibitions against possessing computer-related child pornography.  See the NCSL Computer Crime web page for links to the full text of the legislation mentioned.

- submitted by Heather Morton

Inmate Access to the Internet

A Minnesota state prisoner, serving 23 years for molesting teenage girls, had unsupervised access to the Internet through his work for a nonprofit work and education program inside the prison. The prisoner had used his Internet access to trade child pornography over the Internet. To prevent this kind of abuse from happening again, the Minnesota Legislature in 1997 passed legislation limiting access by inmates and parolees and probationers.

After the Minnesota incident, Congress passed the Protection of Children from Sexual Predators Act of 1998, Title VIII of which prohibits unsupervised access to the Internet by federal prisoners. The act also provided for 50-state survey to determine the extent to which each state allows prisoners access to any interactive computer service. The survey, Prisoner Access to Interactive Computer Systems: Report to the U.S. Attorney General reviews state statutes and corrections agency policies, and includes samples of policies from several states.

Since the report was issued, at least three additional states — Nevada, North Dakota, and Ohio — have passed legislation limiting prisoners' access to the Internet.

- submitted by Pam Greenberg


FTC Panel Issues Report on Online Privacy

The Federal Trade Commission's Advisory Committee on Online Access and Security in May released its final report examining online consumer privacy issues. The report focuses on consumers' access to personal information collected from and about them and looks at how to maintain adequate security for that information. The report sets the stage by exploring basic questions about access, such as: What is personal information? What is the source of that information and who collects it? And how easy should access be for consumers—for example, should websites charge a fee to cover the costs of providing access to information and can they impose limits on multiple or duplicative requests for access?

Next, the report describes four options for parameters on reasonable access to personal information, ranging from the broadest option which would give consumers "total access" — access to any information a commercial Web site may have about them, to the narrowest option — access only to information used to grant or deny a significant benefit to the consumer.

The report also discusses security issues, and makes a single recommendation regarding security—that each commercial Web site that collects personal information be required to develop and maintain (but not necessarily post) a security program for protecting customers' personal data.

- submitted by Pam Greenberg


Telephone Advertising Guidelines Issued by the FCC and FTC

The Federal Communications Commission (FCC) and Federal Trade Commission (FTC) issued a joint policy statement in March that may make it easier for consumers to compare charges for long-distance and dial-around telephone services. Both the FTC and FCC have jurisdiction to take action concerning misleading advertisements. The purpose of the statement is to clarify what type of advertisements will result in enforcement action. The statement does not preempt existing state laws.

Under the guidelines, advertisements for long-distance and dial-around services (the 10-10 numbers that enable customers to bypass their regular long-distance companies to make calls) must clearly disclose all costs and conditions. For example, if the advertisement states that long-distance calls cost 10 cents per minute but there is a $5.95 monthly fee, that information must be clear and conspicuous. In television advertisements, companies are encouraged to make verbal disclosures rather than relying on printed "superscript" on the bottom of the screen, and to show qualifying information for as long as the lead information appears.

The FCC toll-free hotline for information and complaints against telephone companies is (888) 225-5322.

- submitted by Bob Boerner

Wyoming Wires Its Public Schools

America's smallest state in population (479,602), Wyoming, has become the first state to provide access to the Internet in all of its public schools. State officials recognized sometime ago that Internet connectivity is a critical element in providing educational opportunities and developing job skills for students. The project cost is estimated at $25 million for the first five years. And, the state Legislature has approved of the addition of a two-way interactive video system. By June, all of the state's 78 high schools will be connected to this system. This allows a teacher to address students in one classroom and those at distant locations at the same time.

Governor Jim Gerringer, a former state senator, began the drive for statewide Internet access in schools over five years ago. In a recent interview, he stated "Every child in Wyoming now has the opportunity to develop to his or her own potential. By finding a way to touch every school, the next great leader from business or government could come from that one place."

- submitted by Bob Boerner

Laying the Groundwork for Electronic Transactions and Information

Two new uniform acts governing electronic transactions and information are under consideration in state legislatures. The Uniform Electronic Transactions Act  (UETA) and the Uniform Computer Information Transactions Act (UCITA) were adopted by the National Conference of Commissioners on Uniform State Laws in July 1999.

UETA, which was designed to put electronic transactions and signatures on a par with paper transactions and manual signatures, has become law in 13 states. In 1999, Pennsylvania passed UETA and so did California, although the California legislation included a number of restrictions on the its application. So far this year, UETA has passed in Arizona, Idaho, Indiana, Kansas, Kentucky, Maryland, Minnesota, Nebraska, South Dakota, Utah, and Virginia. See the NCSL UETA web page for links to the full text of these new laws. To find the text of UETA and additional supporting information about it, see the web page of the National Conference of Commissioners on Uniform State Laws.  The Consumers Union web site provides information about the adequacy of consumer protection provided by UETA and a list of the UETA restrictions outlined in the California law.

UCITA, which has been criticized by some consumer groups who claim it does not adequately protect purchasers, was introduced in a handful of states this year. So far, only Virginia and Maryland have passed it. See the NCSL UCITA web page for links to the full text of these new laws. To find the text of UCITA and additional supporting information about it, see the web page of the National Conference of Commissioners on Uniform State Laws.

- submitted by Jo Anne Bourquard

Digital Music Discord

The Internet has spawned many trends, and the latest rage is digital music. Young people from around the globe have started downloading music files at a phenomenal rate, crashing servers and breaking bandwidth.

The most popular form of digital music is the MP3 (MPEG-1 Audio Layer-3) format, which creates CD-quality sound files at about one-twelfth of the original size. Converting CD music to MP3 ("ripping" and "encoding") has caught on like wildfire, and audiophiles have begun swapping these files with sharing software—Napster being the most prolific.

This practice is not without consequence, however. The Recording Industry Association of America (RIAA) has accused MP3 and Napster of piracy and filed a lawsuit against the Internet company MP3.Com. In late April, the RIAA claimed victory as a Federal Court ruled the website violated copyright law with its database of music files, and MP3.Com could face damages amounting in billions. Later in May, a U.S. District court judge rejected Napster's request to dismiss the lawsuits from the RIAA. The rock group Metallica and rapper Dr. Dre have both lashed out against Napster, alleging it encouraged users to trade songs and recordings without the artists' permission. The software start-up asserted that the "safe harbor" provision in the Digital Millennium Copyright Act of 1998 limits liability for companies indirectly involved with illegally transmitted material. Metallica and Dr. Dre have sued Napster for copyright infringement nonetheless, stating the act specifies online services are liable if they are warned that a user is infringing a copyright and fail to act.  In response to Metallica's complaint, Napster blocked over 300,000 users from the software in early May.

Schools and universities around the country are also feeling the squeeze of digital music as massive downloading has clogged systems, consumed bandwidth and overwhelmed campus connections. While Yale, USC and Indiana University have banned Napster outright, other schools have blocked ports utilized by the software. Over one hundred schools have implemented some form of prohibition against MP3 sharing.

Users of Napster claim these anti-MP3 action as censorship. And with new software (such as Gnutella and Freenet) echoing Napster's ability springing up every day and the popularity of MP3 increasing, a compromise may be needed soon. Disgruntled individuals have already posted fixes for banned Napster users, causing the company to black out its message board where the hack was posted. And while MP3.Com claimed a small victory with its licensing agreement with Broadcast Music Inc., and Napster's latest beta model adds piracy-proof Windows Media Audio, the war is far from over.

- submitted by Janna Goodwin

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