Teaching By Example
     The Business Software Alliance praised Shaheen's move and other states including California, Nevada, Colorado and Washington, for making formal statements against computer piracy. Georgia is attacking the issue through the legislative process where a bill prohibiting piracy is awaiting approval from the governor.
     "The message from the governor is a strong one," said Becca Gould, BSA's vice president for public policy, in a statement. "The order challenges businesses and other states to promote jobs and economic growth by ensuring the use of only legal and licensed software."
     BSA estimates that the use of illegally copied software costs U.S. companies $2.8 billion annually. Worldwide, that figure jumps to losses of $11 billion.
     While BSA does not have any figures on the amount of piracy committed by state governments, a spokeswoman said the number probably reflects the losses seen in all sectors.
     "Governments are the biggest users and purchases of computer-related equipment," said BSA spokeswoman Diane Smiroldo. "Unfortunately, it's safe to assume there is piracy in state governments."
     Smirolodo added that BSA is encouraging other governors to adopt similar measures.
     "We think it's important for the state's CEO to set an example and draw attention to this problem," she said. "No one is exempt, and no one should be exempt."
     California Gov. Gray Davis, D, issued an order last year prohibiting piracy, citing the technology industry's economic importance to his state and the rest of the country. BSA found, in a 1998 study, that 29.7 percent of software used in the state was pirated, while the national average is about 25 percent. The group also estimated that more than 18,300 jobs were lost in California due to software piracy.
     In October 1998, President Clinton took the lead on piracy and issued his own executive order requiring federal agencies to use legal software.

Competing With The 'Silicon Dominion'
     In other state technology news, Maryland Gov. Parris Glendening, D, signed into law a package of technology proposals pushed by his administration.
     The state is working to compete with its high-tech neighbor,Virginia, by creating a state-level advisory board to advise the governor on e-commerce issues. The legislature also approved a $2 million increase for the Maryland Science, Engineering and Technology Development Company to create incentives to attract new high-tech businesses to the state.
     Maryland lawmakers also approved a plan aimed at stopping computer hackers by making it a felony to "intentionally" harm computer equipment by damaging hard drives or stealing personal information. It also extended the state's current Privacy Principles to protect individuals who use government services available on the Internet. The state moved to increase its Web presence by approving a plan requiring state agencies to make all of their services available online, with a target of 80 percent of services Internet-accessible by 2004. Currently, only 15 percent of state government services are available online.

Governors Taxed By Internet Report
     Thirty-six governors last week joined in opposition to the final report of the Advisory Commission on Electronic Commerce forwarded to Congress on April 12 by their colleague Gov. James Gilmore, R-VA.
     The bipartisan group, under the mantle of the National Governors' Association, sent a letter to congressional leaders urging them to dismiss the tax commission's findings because the final product did not receive consensus support from the full panel. The report includes a business-backed proposal that was strongly opposed by state and local government representatives on the panel.
     "The commission proposal did not focus on Internet transactions, but instead made a recommendation that would reduce other existing state and local tax revenues by over $25 billion per year," the letter said. "This proposal would intrude very deeply into the rights and responsibilities of state and local governments."
     NGA chief Gov. Michael Leavitt, R-UT, told the Senate Commerce Committee last week that despite the report's recommendations, the states would continue to work on their own to simplify their sales tax systems to make them more compatible with new demands placed on them by e-commerce.
     While Congress is considering a number of bills that would extend the current three-year moratorium an additional five years, and make other changes to the tax code, it is unlikely lawmakers will act quickly because of internal differences on the issue.
- by Rebecca S. Weiner