Interviews with State Legislators Regarding the Internet and the Digital Economy

SUMMARY

• State legislators as a group are currently receiving NO information on the Internet and digital economy directly from computer industry sources. As one consequence of this lack of information, they have no conception of how to shape a policy and regulatory environment to promote Internet investment and expand electronic commerce.
  

• State legislators nevertheless overwhelmingly say they would welcome the Internet industry as partners in the design of public policies to maximize the public benefits of the new medium.
  

• The Internet is already changing the practice of politics in substantial ways.
  

• Access to information via the Internet is yielding better legislation;
  

• The availability of information via the Internet is altering traditional power relationships within legislatures;
  

• The Internet is enlarging the pool of citizens who are able to undertake part-time legislative service (service in most legislatures is considered part-time due to statutory limits on days in session);
  

• The Internet is facilitating consensus-building among legislators;
  

• The Internet is expanding the transparency of the legislative process by providing the general public with access to information once the exclusive preserve of professional lobbyists.
  

• The Internet is not yet a significant medium of communication between legislators and their constituents — yet in time this will likely be its most profound contribution to American political practices.
  

• Most legislators believe it is politically beneficial to be publicly perceived as an advocate of the Internet — but political benefit is not the main reason these legislators are interested in the Internet.
  

• Even these Internet enthusiasts seem woefully unable to clearly articulate the societal benefits of the Internet. This makes it difficult for them to contribute to general public acceptance and understanding of these new information technologies.
  

• The characteristic which best differentiates the Internet-friendly legislators from their colleagues is a propensity to consume news and information — the same characteristic which best distinguishes Internet users generally. Internet-friendly legislators are enthusiastic about the practical utility of the Net — and are not motivated by abstract visions of the digital society.
  

• Many legislators are conscious of the need to comprehensively update business laws to the realities of electronic commerce, but they routinely express uncertainty how to do so (absent guidance from industry).
  

• All legislators — to a person — strongly reject regulation of the Net to control pornography, gambling, and other vices. They judge technological solutions and personal responsibility to be the appropriate solutions. They also reject law enforcement's claim that weak encryption is necessary.
  

• The Cox-Wyden proposal in Congress for an Internet tax moratorium at the state and local level enjoys the support of a majority — but not all — of these state legislators. However, opponents (who cite states' rights concerns and the threat to current revenue) seem to be more adamant than supporters (who perceive a patchwork of state and local taxes as a serious threat to the growth of electronic commerce).
  

• Legislators believe television advertising by the industry on electronic commerce is having a significant effect on constituents perceptions and understanding of the Internet.
  

• On these issues, there are few systematic differences between political liberals and conservatives, Democrats and Republicans.

INTRODUCTION

This report is an analysis of in-depth discussions with state legislators from many different states on public policy topics relevant to the development of the Internet and the digital economy. Readers should bear in mind two caveats in evaluating the sample of interviewees.

First, the state legislators who participated in the Internet Summit of the States in Colorado Springs and those who participated in our supplementary interviews at the November 5 meeting of the National Conference of State Legislators in Washington represent a self-selected group of lawmakers who are very interested in Internet issues. They are NOT a random sample of the universe of 7,424 elected state lawmakers in America's 50 state capitals. The legislators in the interview group are not only among the minority of persons who regularly use the Internet, but they are also policy-makers who are interested — for whatever reason — in promoting the further development of the Internet and electronic commerce. Therefore, the opinions expressed by our respondents are not necessarily representative of typical state lawmakers and the reader may even be safe in assuming that the views are probably not typical. On the other hand, the value of this sample group is that they definitely do represent the leadership core of legislators who are most likely to shape policy on digital economy issues.

The second caveat is that this report is the result of qualitative research, which has a couple of implications. Our findings cannot be quantified or expressed as a percentage of the population of Internet-savvy legislators. However, it is valid to look at the opinions, perceptions, and values expressed by these legislators as demonstrative of the authentic attitudinal clusters which exist in that larger population. Further quantitative research will be needed to report precisely on just how large those attitudinal clusters are.

The conclusions we draw here are inevitably subjective. We characterize the comments of more than 65 respondents on a fairly broad array of issues. We are presenting here the most significant comments, based on our analysis of the proceedings and on our judgment. Still, our research was conducted in conformance with the best practices of qualitative research methodology, which is absolutely indispensable for a robust understanding of the opinions of any population.

For ease of reference, the term "Internet" has been used throughout the report as shorthand for connected computing, advanced telecommunications, and other aspects of the digital economy. The concept has frequently been further abbreviated as "the Net." The United States Internet Council is also referred to as "the Council."

Our interviews with legislators focused on ten general topics. The structure of our report follows this outline, with reviews of the discussion on each of these topics in succession. This report reflects the very substantial editorial and substantive contributions of David Colton and Mark Rhodes of the United States Internet Council, which are gratefully acknowledged.

THE TEN ISSUES OF OUR RESEARCH

Issue 1: In what ways are you using the Internet, as a state legislator?

Issue 2: Is it politically advantageous for you to be perceived as an advocate of the Internet?

Issue 3: What characteristics distinguish you from your colleagues who are not proponents of the Internet?

Issue 4: What is the Internet — advanced telecommunications or connected computing?

Issue 5: What are the potential benefits of the Internet to your state and your constituents?

Issue 6: What is the role of state government in bringing about the benefits of the Net you described?

Issue 7: How do you deal, as a legislator and an advocate of the Net, with the potential downsides of the Internet?

Issue 8: What do you think of the Cox-Wyden tax moratorium proposal?

Issue 9: Where do you get information about the Internet?

Issue 10: What do you think is the impact of public attitudes toward technology upon public receptivity of the Internet?

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