Move to digital government sparks state privacy concerns

While all 50 states made significant progress during 2001 in integrating information technology into government services, that progress is raising new questions about how states are protecting individuals' private information, according to a new survey from the Progress and Freedom Foundation (PFF) and the Center For Digital Government.

"Without a doubt, a major theme will revolve around how we deal with the privacy challenges presented by digital technologies, especially as they are put to use to enhance homeland security," PFF President Jeffrey Eisenach wrote in the forward to the 2001 Digital State Survey.

The survey, released on Wednesday, named Illinois and Kansas state governments' as the top users of digital technology.

In an interview with National Journal's Technology Daily, Eisenach noted that state law enforcement agencies are accelerating the integration of intrastate databases since the Sept. 11 terrorist attacks, and that is raising concerns among some observers that state officials are not also looking at the privacy concerns associated with such integration.

For instance, Eisenach said states need to examine how long they are keeping records of individuals' personal information, who they are sharing the information with and under what circumstances, how the information is being used, and what the penalties for misuse are.

States that were particularly aggressive in giving law enforcement access to databases during 2001 were Colorado, Delaware, Illinois, New Jersey, Ohio and Georgia, according to the survey. But none of those states have enacted privacy laws detailing how the information may be used.

According to the Internet Alliance, only eight states have passed laws regarding government use of private information, though many states have been examining whether they should update their laws to reflect the impact of digital technology.

"States realize they collect a lot of personally identifiable information, and add to that the heightened focus on security," said Emily Hackett, the Internet Alliance's executive director. "We have to achieve the right balance between privacy and security."

States that have passed privacy laws include Arkansas, Arizona, Massachusetts, Montana, Nevada, New York, Texas and Utah. Meanwhile, only 15 states have passed financial privacy laws since enactment of a 1999 federal law on the topic that enables states to pass tougher laws.

But states ultimately may not need to solve the issue of government use of private information themselves. House Energy and Commerce Committee Chairman W.J. (Billy) Tauzin, R-La., hopes to win House enactment this year of a bill that would supersede all state laws on privacy. Among other things, that measure would set guidelines on government use of private information that is collected electronically.