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State Roundup: July 7, 2005
California Plans Consolidated Data Services
by Chloe Albanesius

     California would consolidate its three general-purpose data centers into one Technology Services Department under a 2005-2006 budget agreement reached earlier this week between Gov. Arnold Schwarzenegger and state legislators.
     The shift would "substantially improve" information technology management in the executive branch, according to the budget. Specifically, it would merge the services currently being performed by the Health and Human Services Agency data center, the voice communications and data-networking functions of the General Services Department's telecom division, and the Stephen P. Teale Data Center.
     A 2002 hacking incident at the Teale Center prompted state legislators to craft a law on notifying consumers of security breaches. That statute is now being used as a model for other states grappling with a recent spate of data breaches.
     The new department is expected to cost about $235.4 million over two years. A board of state tech officials will serve as the department's governing body, while a management office will oversee consolidation efforts.
     The budget also would reduce support for the Office of State Publishing by 114 workers and $6.2 million because the "increased demands for digital technology printing and Internet publishing" have lessened the demand for the office's services. With a small portion of its $970.2 million in funding, the General Services Department would have to create an Internet marketing plan to increase the online visibility of surplus state properties in an effort to attract buyers.
     Under another budget provision, the Franchise Tax Board would have to continue work on an automated child-support collection system. The beleaguered effort, which was contracted to IBM in a 2003 deal worth $801 million, has been delayed since 1997, prompting the federal government to fine the state millions of dollars each year. The first phase of the system is set to be in place by September 2006.
     Other tech allocations include: $361,000 for data cabling; $729,000 to replace old computers; $2 million to create an internal portal for database sharing; $3.5 million for upgrades to the Insurance Department's telecom system; and $335,000 for additional IT personnel. Insurance also would get $200,000 to pay for credit-card convenience fees incurred when residents make payments to the department online.
     "This is a budget to put us on the path toward rebuilding California," Schwarzenegger, a Republican, said in a statement.
     Senate Republican Leader Dick Ackerman urged "all sides to work on structural budget reforms" to avoid crises that have plagued the state in years past.
     Last month, meanwhile, Schwarzenegger signed a bill, A.B. 1305, that revamps existing wiretapping laws to provide that communications not be stored in electronic format.
     In other budget news, Massachusetts Gov. Mitt Romney on Saturday signed a $238.8 billion budget for the year beginning July 1. Among other things, it would allocate $12.2 million for improvements to the state police crime laboratory, a $4.6 million increase.
     The Republican governor failed to endorse a plan that would have charged a fee for released sex offenders registering with the state. While well-intentioned, he said, the bill might have dissuaded criminals from registering. Romney instead urged lawmakers to increase criminal penalties for those who do not register.

N.Y. Lawmakers Send Wine Bill To Governor
     New York lawmakers on Friday sent legislation to Gov. George Pataki that would allow the limited, direct shipment of wine to individuals.
     Under the bill, A. 7379, licensed wineries could only ship 36 cases per person each year, deliverymen would have to see proof of age and obtain signatures, and containers would have to be clearly identified as holding wine.
     The Supreme Court in May ruled that Michigan and New York laws allowing intrastate wine shipments but not interstate ones violated the U.S. Constitution's Commerce Clause. The court allowed state legislatures to decide whether to allow both kinds of shipments or to ban the practice altogether.
     The bill would allow for "the necessary safeguards and guidelines to ensure that the interstate shipment of wine is done responsibly," the Republican governor said in a statement.
     Elsewhere, other governors this week signed a number of tech-related measures that address issues like research and development and telecommunications.
     Louisiana Gov. Kathleen Blanco on Wednesday signed a bill, H.B. 684, that supports state-level R&D efforts by giving a 20 percent tax credit to small businesses and an 8 percent credit to larger companies. While Louisiana once profited greatly from industry research during the oil boom, it since has dropped well behind other states in R&D projects.
     On Friday, the Democratic governor signed a measure, H.B. 531, that creates a fund for high-speed Internet infrastructure and information technology. The fund will be supported by grants, donations and legislative appropriations.
     Blanco also signed legislation, S.B. 341, that encourages investment in digital, interactive media and a bill, S.B. 316, that requires the Louisiana Tax Commission to create a Web site with information on real estate and personal property taxes.
     Other bills Blanco signed include:
     H.B. 6, which allows military personnel called to active duty to cancel their cellular phone contracts without penalty;
     H.B. 290, which provides for the prompt payment of e-pharmacy claims;
     H.B. 547, which makes it illegal to solicit minors online.
     And H.B. 293 and S.B. 271, which create registries for Parkinson's Disease and direct-care workers.
     Wisconsin Gov. Jim Doyle, meanwhile, signed a bill, A.B. 197, that expands the state's registry on cancer drugs to include drugs and supplies for other chronic diseases like diabetes. The effort will "create an avenue for patients with limited means to obtain very expensive drugs at an affordable cost," the Democratic governor said in a statement.
     And in New Jersey, acting Gov. James Codey signed a measure, S. 1889, that appropriates $3 million to monitor released sex offenders via global positioning satellite. The Democrat also signed legislation, A. 3473, that allows the state to join the Streamlined Sales Tax Project.

A Trip Down Broadband Lane
     South Dakota telecom officials and a member of the FCC next month will take a three-day road trip across the state to highlight businesses' use of the high-speed Internet.
     From Aug. 23 to Aug. 25, Public Utilities Commissioners Gary Hanson, Dusty Johnson and Bob Sahr, as well FCC Democrat and South Dakota native Jonathan Adelstein, will travel to the Cheyenne River Indian Reservation, Deadwood, Groton, Kennebec, Mitchell, Philip, Pierre and Sioux Falls. They will meet with the owners of telephone companies, a livestock barn doing online sales and Deadwood officials who are promoting their town via the Internet.
     Also in South Dakota, the state Health secretary on Wednesday unveiled a Web site that will post the average price of hospitals' inpatient procedures.

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