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RADIO FREQUENCY IDENTIFICATION (RFID)
A GUIDE FOR POLICYMAKERS

An NCSL Fall Forum Pre-Conference Seminar
Chicago, Illinois, December 6-7, 2005

Session Date: December 6 - 7, 2005

Fall Forum Session Summary: Radio Frequency Identification – A Policymaker’s Guide : Case Studies

By Ricardo Ochoa

Intern, Legislative Information Services

This summary is provided for information purposes only. NCSL does not endorse any views it contains.

Chicago – The use of RFIDs has the potential to impact both government and businesses.  At the Fall Forum for the National Conference of State Legislatures in Chicago, attendees were able to attend panels where several of these applications were addressed.  These panels addressed RFID applications in the Retail & Business, Libraries & Schools, Identification Systems / Transportation Security, and Medical / Health Care fields.

In the retail world, RFID promises to greatly improve shipping and stocking.  Goods at all levels, from pallets to individual packages, can be tagged, helping stores quickly inventory their stock as well as letting the store know when a shelf needs to be restocked.  The ultimate goal would be for a true demand-driven supply chain. 

It was also pointed out that several RFID abuses that a retailer could perform would go contrary to the essence of retail, where stores want to make shoppers comfortable and engender trust in the store in order to encourage repeat business.  Simply put, stores won’t want to alienate their customers and lose their business.  Even so, it is vital that Fair Information Practices be used to control the access and security of any information collected.

Transportation of goods can also be tracked with RFIDs, which, for this use, can be read at long range.  Jürgan Reinold, from Motorola, points out that hazardous materials being moved can be monitored easily, making sure that they are on the assigned route at all times. 

RFID usage in libraries is very similar to retail uses.  Books can be quickly checked in or out and shelved easily.  Likewise, the inherent security provisions will reduce theft.  By saving staff time and preventing asset loss RFID offers enormous benefits to libraries.  Deborah Caldwell-Stone, from the American Library Association, predicted that the use of RFIDs in libraries is inevitable. 

Over 300 libraries in country already use RFID.  The main concern for libraries is how the technology will be used.  Professional librarians have a traditional commitment to privacy and would like to see RFID implemented in ways that do not violate that commitment.  Recommendations from a test library in Berkeley, California suggest using only identification numbers, which correspond to a private library database.  The recommendations further propose that users should be  well informed about  the presence of RFIDs.

Schools can also reap the benefits of RFID for asset protection.  School supplies, from books to projectors, can be easily managed with RFID, and this type of use raises few complaints. 

The true concern is what happens when schools begin tracking students.  While it’s true that automated roll calls can save valuable class time, and locating students in emergencies would be a great help to teachers and emergency responders, there is still valid apprehension to the use of RFIDs for tracking individuals.  It was pointed out that by adopting RFID technology in schools we would also be indoctrinating our youth into a surveillance society.  Others feel that guidelines need to be in place as to how the schools can use and share the information.  Rei Onishi, a legislative aide to California Senator Joe Simitian, showed that in the last year alone many schools have had serious security breaches, which supports the idea that schools might not be ready to handle all the risks involved with tracking people.  He used this point to illustrate the need for Senator Simitian’s bill, S.B. 768, which calls for a three year ‘timeout’ for RFID in certain identification documents such as school IDs.  The goal expressed was to provide time for the technology to mature and allow for ample discussion on these issues.

When dealing with identification systems many people worry about the privacy issues involved.  Frank Moss, Deputy Assistant Secretary, Passport Services for the U.S. Department of State, told the audience about the proposed U.S. Passport.  Originally intended to come out this year, the RFID version was postponed until the end of 2006 in order to address concerns from the public.  The RFID that was proposed contained only the information printed inside the passport, including the photo.  Since the passport RFID would not be encrypted, as needed by the international community, the passport cover was designed with shielding technology that would only allow remote reading when opened.  These security measures were designed to help protect the information on the passport while at the same time providing an important security measure to ensure that the passport is valid and belongs to the person presenting it.

Several policy considerations when dealing with government IDs were identified.  An important idea was the criminalizing of bad behavior.  This could be done by outlawing unauthorized access to RFIDs.  While such a measure would work to prevent someone who was trying to push the edge of legality, a true criminal would just ignore such laws.  This led to the idea of establishing basic security and privacy principles into RFID documents to prevent such activities.  It was also stressed that static standards were not a good method, but rather legislators should attempt to establish standards that could evolve with the technology as well as encompass new technologies.

The medical applications of RFID promise to increase hospital efficiencies and accuracy, which would have the net effect of lowering costs.  Asset tracking could be used to ensure the proper equipment is in the operating room, as well as helping locate surgeons in an emergency. RFID chips in medicine bottles can help ensure the correct drug reaches a patient and can help speed drug recalls.  Some uses could even make sure that especially vulnerable patients, such as infants or those suffering Alzheimer’s, can be tracked to make sure they receive the proper care.

The benefits are clear, but the risks of RFIDs in hospitals can be troublesome.  The Health Insurance Portability and Accountability Act (HIPAA) requires medical caregivers to carefully control how private medical information is shared, but RFID chips, which broadcast the information to anyone who can read the transmission, present problems in tracking who reads the data.  Hospitals may not even wish to use encryption since it will take precious time to decrypt the information in RFIDs in emergencies.  Even with the best tools, human error will still exist.

Regardless of the use, the panels agreed that RFIDs should follow a few set principles.  Information should be as secure as possible for the application and Fair Information Practices should be followed.  It is also very important that the public be well informed of the existence and uses of the RFID when it reaches them.  Public understanding will help generate trust and acceptance of RFID.

NCSL is a bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories.  It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.

 

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