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January 28, 2003
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Here's a round-up of critical technology issues being considered by several state legislatures. Even if your state isn't considering these issues yet, legislation in one state often sparks similar efforts in others.

Internet Taxation
* AT ISSUE -- With a possible November 2003 expiration of a Federal ban on multiple and discriminatory taxes on e-commerce and on internet-access taxes, many states facing dire revenue shortages are considering an array of new tax-related bills that could have a direct impact on e-commerce.

* THE STAKES - Some state governments could decide to impose new sales-tax requirements on e-commerce, as well as become more aggressive in imposing income taxes on remote sellers with no physical presence in the state. Companies that conduct business online could face a loss of revenue, additional administrative costs, and additional income tax costs as a result. If that happens, consumers will lose as well.

Privacy Legislation
* AT ISSUE -- The continued vitality of online commerce depends on consumers who feel that their personal information will be safe when it is transmitted to online vendors. That's why Trustworthy Computing is a top priority for Microsoft and the technology industry. But individual states are considering a wide variety of laws that, taken cumulatively, would result in a tangle of online privacy rules.

THE STAKES -- Given the current stagnation in the online industry, a patchwork of confusing and inflexible state privacy laws could require online companies to comply with 50 different regulatory regimes. That could impede the dynamism of e-commerce and impose additional compliance costs on the online industry as well as on consumers.

Spam
* AT ISSUE --- Several states will consider legislation to stop unsolicited commercial e-mail, better known as "spam." Spam not only aggravates just about everyone who has an e-mail account, but it also costs Internet Service Providers and corporations by overloading networks and degrading the quality of service to consumers.

* THE STAKES - Because it fundamentally devalues a user's computing experience -- and the value of technology along with it - requirements should be created to reduce the delivery of unsolicited commercial email to consumers. Legislation could help stamp out spam, but it should do so in a way that does not impair legitimate advertising and marketing activities that benefit consumers.

What You Can Do
We encourage FIN members to take an active role in public policy debates at the state level. To identify your state elected officials and let them know how you feel about these critical technology issues, visit this link.

You can also learn more about policy issues affecting technology by visiting the FIN Web site. You'll find information about the Microsoft antitrust case, news about technology and more.

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