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State Roundup: October 30, 2003
Homeland Security In The Hinterlands
by Chloe Albanesius

     The battle against terrorism is "truly fought outside the Beltway," Virginia Gov. Mark Warner said at a Wednesday homeland security conference in Washington.
     "When I was running for governor two years ago, I didn't imagine that security or particularly homeland security would be a critical part of my governorship," he said. "But let me assure you, for every governor in America today it is." The threat of terrorism has "required a whole new approach [and] coordination," he added.
     Virginia is getting ready to launch the second phase of its security initiative, though Warner does not think "the lines are clearly drawn" for specifics of the plan. "I don't think the public has been brought into the debate nearly enough," he said. The second phase will be better executed after addressing areas that he said deserve "much further discussion and examination."
     The nation has not fully addressed how to protect economic security, Warner said, and that includes homeland security spending.
     In addition, the governor stressed public and private collaboration. Virginia, for instance, passed legislation that would allow banks and telecommunications companies to share network information with the government without putting them at a competitive disadvantage.
     He also called for an "ongoing balance between civil liberties and needs for enhanced securities." He pointed to the fact that the Sept. 11, 2001, terrorists "took advantage of loopholes" in Virginia's motor-vehicle department to obtain faked identification. Warner hopes that problem will lessen with the introduction of biometric information on licenses.
     Warner stressed that "security concerns can't fit in some narrow little box off to the side; [they] pervade everything," and that the government is "asking Americans to trust us."
     Finally, increased collaboration among all levels of government is essential, Warner said. "I can't stress enough that the frontline in the battle for homeland security is not Washington but is taking place in state capitals and local governments."
     In related news, Warner on Friday announced that two additional fire departments received about $200,000 in security funding. The Hillsville Fire Department received $95,434 and the department in Independence received $99,408. "These federal grants continue to promote the safety and security of the citizens of the commonwealth," Warner said in a release.
     Also at the conference, Mayor Ed Garza of San Antonio, Texas, said further dialogue on regional partnerships is essential. "How are we better preparing our business?" he asked. "Cyber security [is] one of the focus areas [on which] we have spent enormous time and resources in Texas. It continues to be important as we focus on infrastructure and how cities focus."

Oregon Sues Over Online Drug Sales
     Attorney General Hardy Myers sued two Oregon doctors last week for the unlawful sale and advertising of prescription drugs over the Internet.
     Steven Gabriel Moos and Thomas Holeman practiced medicine at the Medical Clinic of Tigard in Oregon until Moos was put on 10 years' probation in 2000 for the illegal sale of drugs online and later stripped of his medical license in 2003 for similar charges.
     A joint investigation between the Justice Department and the Food and Drug Administration found that the duo was pedaling human growth hormone, illegal free samples of prescription drugs, and a gel marketed and sold on the Internet that they falsely claimed contained the same active ingredient as Viagra.
     "Oregonians must be able to trust their doctors when it comes to the health and safety of themselves and their families," Myers said in a release. "The defendants' alleged conduct exploits the trust of their patients to turn a profit peddling prescription drugs that could, in some circumstances, endanger their health."
     The lawsuit requests that consumers be refunded any money they spent on products purchased through the Web site. The pair also face civil penalties of up to $25,000 for each violation of law, reasonable attorneys' fees and a permanent injunction against drug sales.

North Carolinians Debate Media Ownership
     Reaction was mixed last week to the FCC's new media-ownership rules at the first of six open forums sponsored by the commission intended to gauge public opinion on the changes.
     FCC Chairman Michael Powell in August launched a "localism" task force to address media concentration amid criticism of the rules and the fact that the FCC held only one public hearing before their implementation, CongressDaily reports.
     "I think we're at a critical point to stop the progression of media monopolies," Kathy Walker, a local advertising agency owner, said at the task force's first forum in North Carolina. She added that she has seen "many negative changes" as a result of the new rules.
     Michael Ward, general manager of NBC-owned WNCN-TV in Goldsboro, said that NBC has increased its local news offerings by 60 percent since purchasing WNCN in 1996 and that a commitment to localism is critical.
     "In six short years, WNCN has been transformed from a barely watched home-shopping outlet to a strong local competitor, a key source of news, public affairs and entertainment programming, and a solid contributor to the social, political and religious life of the local community," he said.

Pennsylvania Doubles Research Tax Credit
     The Pennsylvania House last week approved a plan that will double the state's research and development tax credit.
     The measure, supported by the Pittsburgh Technology Council, will increase the credit from $15 million to $30 million each year. That will provide a source of new capital for startup technology companies and increase the existing value of the R&D credit for the state's larger tech companies.
     In other news, the New Jersey State Tax Court on Tuesday ruled that companies selling to New Jersey consumers but not located in the state will not be taxed on sales of their licensed goods.

Alleged Child Predators Nabbed In Texas Stings
     The Texas attorney general's cyber-crime unit on Wednesday arrested a man in Austin for arranging a sexual encounter with someone he thought was a 15-year-old girl. The "girl" was actually an investigator in the unit.
     Conrad Coelho is the 17th person arrested since May via Internet chat rooms. He was charged with attempted sexual performance of a child.
     Last week, authorities nabbed Todd Keith Kennedy for criminal solicitation of a minor and Cliff Neal Mullican for promotion and possession of child pornography.




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