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State Roundup: September 16, 2004
Privacy Group Urges 'Spyware' Veto
by Chloe Albanesius

     A California privacy organization is urging Gov. Arnold Schwarzenegger to veto legislation aimed at computer "spyware" because of concerns that the bill would be inadequate.
     The Privacy Rights Clearinghouse sent a letter this week to the Republican governor, calling on him to reject the bill, S.B. 1436. The measure would ban the use of programs secretly installed on computers to monitor users' actions online. Software makers and Web-site owners would have to inform users when and if they use spyware programs. Those not informed could seek damages up to $1,000 per incident, plus attorney fees.
     The measure's intent-to-deceive language is "inappropriate in a privacy protection bill," the group's director, Beth Givens, said in a statement. "Because of this language, if a company is caught violating S.B. 1436, the bill sets such a high standard for litigation that the law is virtually unenforceable, thus leaving Californians' privacy unprotected."
     Givens acknowledged that the bill is "well-intentioned" but criticized it for leaving "broad categories of harmful spyware untouched." California lawmakers also removed a critical amendment with "strong provisions for notice, consent and purpose specification," she said. "Late in the legislative session these provisions were removed, significantly weakening the bill."
     While Schwarzenegger has not yet acted on the bill, on Tuesday he signed into law a measure on cellular telephone safety. The bill, A.B. 2785, prohibits drivers of school buses or other transit vehicles from talking on cell phones while driving. The measure does not apply to those using the device for work-related purposes or during emergencies.
     In other news, the government research firm Input on Thursday released its assessment of California's recent performance review. The 2,500-page document called for the state to examine "open source" software options in an effort to save money. Users of open-source software can view and alter the underlying code.

San Diego Tops City Broadband Rankings
     San Diego is the top wired, high-speed Internet city, according to a report released Wednesday from Nielsen/NetRatings.
     Some 70 percent of the local market in the California city is wired for broadband. Phoenix, Detroit, New York and Sacramento, Calif., round out the top five.
     "Our data indicates that U.S. coastal cities, which tend to be more affluent communities with large professional workforces, are more connected via broadband, while those located more inland are still connected via narrowband," Nielsen analyst Corey Jeffrey said in a statement.
     The top five cities connected via narrowband are Baltimore, Miami, Chicago, Denver and Minneapolis.

Governors Urge Action On Drug Imports
     Three governors on Friday urged Senate Majority Leader Bill Frist to move on legislation that would allow the importation of prescription drugs from Canada.
     "We're doing what we can at the state level to help our citizens get their medication at a price they can afford -- even if that means buying them in places like Canada and Europe, where they cost half as much," Gov. Rod Blagojevich, D-Ill., said in a statement. "But real, long-term change will require action at the federal level."
     Blagojevich joined New Hampshire Gov. Craig Benson, a Republican, and Wisconsin Gov. Jim Doyle, a Democrat, in sending a letter to Frist, R-Tenn., that calls for passage of a bill, S. 2328, to allow imports of U.S.-approved drugs from 19 developed countries.
     Affordable access to prescription drugs "is a consumer issue, not a partisan issue," the governors wrote. "Now is not the time to slow momentum for change." They acknowledged Frist's concern about the safety of imported drugs, calling on the government to contract with legitimate and respected foreign pharmacies and to visit facilities abroad.
     Frist told reporters last week that movement on drug-importation legislation "looks doubtful" before the November election, according to CongressDaily.
     Meanwhile, Benson last week added K-Tel Drug Mart, a Canadian mail-order pharmacy, to the list of establishments on New Hampshire's drug Web site.

Nebraska Hospital Plans Telehealth Initiative
     The Nebraska Public Service Commission last week approved a request from the Nebraska Hospital Association to use state money from the fund for offering universal telecommunications service for a telehealth initiative.
     The organization will use $900,000 annually to connect state hospitals to voice and video hookups maintained via hubs from hospitals in Grand Island, Kearney, Lincoln, Norfolk, North Platte, Omaha and Scottsbluff. The move will give residents in more rural areas better access to specialists and medical records.
     "The commission recognizes the great potential for healthcare services that will benefit the entire state," commission Chairman Jerry Vap said in a statement. "Rural hospitals will have instant access to medical specialists to provide critical care quickly."
     Commissioner Anne Boyle predicted that the move could "produce more cost efficiencies in providing health care in Nebraska."
     In other news, the Nebraska commission also invited five local groups to submit full grant applications to the Nebraska Internet Enhancement Fund. The fund was established to help localities improve Internet and telecom infrastructure. It is funded by a share of money generated from leasing excess dark fiber-optic facilities owned by public agencies.
     The invited groups include Chappell Nebraska Broadband Project, Cheyenne County commissioners, Box Butte County commissioners, Dawes County commissioners, and the Nemaha County Development Alliance.
     Meanwhile, the Montana Public Service Commission on Wednesday approved a settlement between 11 small, local telephone companies and Western Wireless regarding the rights of customers to keep their numbers when they switch providers.
     According to the agreement, wireline phone companies will proceed with such number portability requests on specific dates and no later than Jan. 1, 2006. In addition, wireline companies will deliver transferred calls as local calls through direct connection or via a Qwest tandem switch. Western Wireless and locals companies also will work to establish direct connections.
     "These agreements resolve the specific issue of wireline to wireless number portability, and also begin to address longstanding economic and operational difficulties between wireline and wireless telecommunications companies," commission Chairman Bob Rowe said in a statement.

Court Upholds Michigan Anti-Porn Law
     A federal district court in Michigan on Monday upheld a state law banning the dissemination of pornographic material to minors. Under the 2003 measure, those who knowingly disseminate or distribute sexually explicit material deemed harmful to minors are subject to criminal liability. The plaintiffs argued that the law was vague and too broad.
     But Judge Anna Diggs Taylor said, "The court finds that the act is not overbroad because the challenged provisions all refer to materials that are harmful to minors as defined in [the law]."
     Michigan Attorney General Mike Cox praised the ruling.

N.J. Governor Approves Registry, Piracy Bills
     New Jersey Gov. James McGreevey this week signed two tech-related measures into law. The first bill, S. 1208, sets certain standards for citizen access to the state's Internet registry of convicted sex offenders.
     Under the law, the public will have full access to registry information about offenders highly likely to become repeat sex offenders. Information on those convicts with a moderate chance of new offenses will be available to the public with a few exceptions, while data on those with a low chance of committing another sex crime will not be publicly available.
     The second bill, A. 2513, makes it illegal to pirate movies using camcorders.




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