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The Governors Come To Town
After bemoaning the need for state control over state issues, the nation's governors finally agreed with the federal government on at least one matter at the National Governors' Association winter meeting held in Washington last weekend. When Senate Majority Leader Trent Lott R-MS and House Minority Leader Richard Gephardt D-MO visited the final session Tuesday, the congressional leaders pledged that they would work with the governors to ensure that the makeup of the Advisory Comission on Electronic Commerce is not skewed towards industry.
Currently, there are more industry representatives, seen as biased in favor of unfettered e-commerce. Many in state government have urged the addition of another local representative. Lott said the leadership would "take a little time" to improve the commission, adding that the results may "not wind up being tilted the way you like it."
Earlier Tuesday, the NGA agreed to ask states to look into streamlining their tax procedures. The request is in anticipation of the fact that states may soon need to be able to regulate e-commerce sales taxes as well. The policy position "supports state efforts to pursue, though negotiations, the courts, and federal legislation, provisions that would require large out-of-state mail order firms to collect sales and use taxes from their customers." With language that also includes Internet sales, it urges states to adopt a one-rate, one-state approach to the sales tax.
While the governors were as passionate about whether to vote as they were about the issue itself, a vote was ultimately taken. The position passed, but it was not unanimous. Gov. James Gilmore R-VA abstained from the vote, as he is the likely chairman of the Advisory Committee on Electronic Commerce. Gov. Gary Locke D-WA, also on the Advisory Committee, was absent, while Advisory Committee's third governor member, Michael Leavitt R-UT, championed the drive and argued frequently for the position's adoption.
However, the chief executives of leading e-commerce states opposed the measure. Gov. Gray Davis D-CA voted against it; Gov. Paul Cellucci R-MA missed the vote but stated his opposition before heading back to Boston.
"I want to make sure we don't slow down the economic potential of the Internet," Cellucci said.
The Net As a State Tool
But e-commerce was not the only information technology item on the agenda. Governors sat through sessions on the new economy, on how to use the Internet as a communication tool for state issues, and on the promotion of education technology in their schools.
During the Sunday session, which focused on the economy and commerce, Rob Atkinson of the Progressive Policy Institute emphasized globalization, speed and new technologies, and urged states to prepare workers and students to take jobs in the new industry.
"This change in the U.S. economy is as important as the change from an agricultural to industrial economy in the beginning of the century," Atkinson said.
Joining him were Professor Michael Porter of the Harvard Business School and Jeffrey Eisenach of the Progress and Freedom Foundation. Both urged the governors to follow new technology-dictated economic trends closely.
The chair of the Task Force on Information Technology, Gov. Jim Geringer R-WY said that the session, combined with others throughout the weekend, would prove that technology should not be viewed as a single item on a governor's agenda, but rather should be integrated as a part of government procedure.
"There are so many things happening, we have to focus on principles and transform how government works for the individual citizen," Geringer said.
In the first meeting of the Task Force, the governors were schooled in how the use of new technology could make state operations run smoothly. Microsoft CIO John Connors and TRW Public Sector Solutions Vice President John Kost addressed the panel, outlining internal operations and providing a basic tutorial demonstrating the efficiency that online procurement and other business systems could provide offices.
When the focus turned to education Monday, Govs. Paul Patton D-KY and Don Sundquist R-TN led a discussion of how their school systems had integrated technology in their classrooms successfully. Fred Carrigg, director of academic programs for Union City, NJ, public schools, offered additional tips.
Carrigg emphasized the importance of achieving major organizational changes before computers are even considered. By changing the physical set-up of classrooms, lengthening classes, providing teachers with technology training and attaining business and community partners, Union City was ready when the new technology was introduced.
"Success is dependant on systemic reform," Carrigg said. "It is not changed if you dump computers in classrooms. Technology must be about the students, and it must bring something meaningful."
Canning Spam In Virginia
Governments may like pork, but in Virginia, the government hates spam. Legislation that would criminalize sending "bulk, unsolicited" e-mail messages passed both houses of the Virginia legislature this week, and is set to be signed by Gov. Gilmore. Gilmore, who introduced HR 1417 as part of the Virginia Internet Policy Act, has promised to sign the bill, which makes it a crime to send so many e-mails that a system crashes.
Virginia is not the first state to pass such legislation, as California enacted a similar law last year. In other states, spamming is grounds for lawsuits.
But under HR 1417, spamming will land perpetrators in jail. State Rep. Kenneth Plum D-Reston, who chairs the House Committee on Science and Technology, said recently that the language of the law is worded carefully so that it protects free speech while not curtailing commerce and other legitimate advertising on the Internet.
The bill criminalizes the distribution of software which is principally used for spamming, and allows companies, individuals and ISPs damaged by unsolicited bulk mail to sue for damages. The bill also includes language that says falsifying or forging e-mails is a crime.
ACLU Opposition
The American Civil Liberties Union opposes the bill on constitutional grounds, saying it violates the First Amendment. Kent Willis, executive director of the ACLU of Virginia, says that the group does not object to the anti-fraud clauses, adding that such actions are already against the law.
"We're finding people are clarifying that a lot of other laws also apply to the Internet," Willis said. "That's fine."
But the other language poses a problem, said Willis. The ACLU of Virginia believes the legislation is "too much too soon," adding that spam has not reached the point where the legislature should be curtailing it.
"We generally don't benefit from quick reactions in the law," Willis said. "If they appointed a study commission to carefully study the issue over a year or two, and then make well-reasoned and balanced decisions about how to control it and understand that there is a free speech element to it," the group would be more satisfied.
Todd Reid, a spokesman for Virginia Secretary of Technology Don Upson, said the issue is not one of free speech, but rather of people abusing e-mail systems. To date, the charges against those who misuse computer systems have been minimal.
"They are usually fined the cost of sending the email through the system, which amounts to points of pennies, and they regard that as a cost of doing business," Reid said.
The bill is the result of close work between the governor's office and the industry in Virginia, and the result is something the state hopes will help ISPs combat the problem of people trespassing on their computer systems, Reid said.
Richard Barton, a spokesman for the Direct Marketing Association, said his organization does not have a problem with the bill because it doesn't ban spam outright.
"We'd be very questionable about anything that bans spam altogether and feel you should be able to send unsolicited mail as long as you state who you are and give people the ability to opt out of it," Barton said.
Other News, Other States...
—by Stephanie Lash
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