Cybersecurity & Tech

This fall we should be seeing an Executive Order from President Biden on Artificial Intelligence with a goal of balancing innovation with the protection of Americans. This is not the President’s first A.I. rodeo. In October 2022, his Administration released “Blueprint for an AI Bill of Rights”, and in a February 2023 this Executive Order  instructions were given to federal agencies to consider disparities and equity in A.I.

Bank Info Security | White House Set to Publish AI Executive Order This Fall

60% of Americans in a survey by American Economic Liberties Project think big tech companies have too much market power. The 60% reflects 65% of democrats, 63% of independents & 53% of republicans. 30% of respondents say that “companies “showcase the best of American innovation and capitalism, and are deserving of the profits and market power they have achieved.” 

The Hill | Majority in poll says Big Tech has ‘too much power in the market’

 What do Americans think about a.i. regulations? According to a Pew Research survey,  67%  don’t think government regulation of a.i. will be strong enough. 39% of republicans think a.i. regulations will go too far. 25% of democrats feel the same way.

Pew Research Center | Most Americans haven’t used ChatGPT; few think it will have a major impact on their job

Data brokers in California are currently regulated by the state Attorney General,  but that’s coming to an end. SB 362 (2023 | CA) will officially move regulatory authority California Privacy Protection Agency, approved by voters in 2020. The agency will have full regulatory oversight over data privacy.

Governing | A California County Returns to Power, Thanks to Its Microgrid

This week, Governor Newsom issued Executive Order N-12-23 to make California a global hub for  generative artificial intelligence. The order includes partnership opportunities, ethical standard promulgation, and the need for beneficial uses of a.i.

Apparently online you can find ways to work around security defects in certain vehicles. This led to a 55% increase in thefts of these vehicles in Chicago. Chicago is suing manufacturers over the security defects because of the car theft crisis that was based on the manufacturers “unlawful and reckless actions.”

Governing | Chicago Sues Car Manufacturers Over Skyrocketing Auto Theft

Let’s add another governmental entity that accepts crypto payments. Welcome, Colorado DMV. Its sole crypto payment processor is PayPal.

Meet the  Klaytn Foundation which has unveiled its ” blueprint to use blockchain to bring about social evolution.” Their focal point is RWA tokenization and “rolling out an RWA-specific token norm.” What is RWA? real world assets. In short- tokenizing good works, social impact.

Finance Feeds | BLOCKCHAIN FOR SOCIAL IMPACT: THE KLAYTN FOUNDATION BLUEPRINT

Apple supports SB 244 (2023 | CA), California’s Right to Repair legislation. Apple says ““We support SB 244 because it includes requirements that protect individual users’ safety and security, as well as product manufacturers’ intellectual property. We will continue to support the bill, so long as it continues to provide protections for customers and innovators.”

Fast Company | Apple is now supporting ‘right to repair’ laws—here’s what that could mean for its devices

Congressional leaders say that current federal laws cover a.i. But what does that mean? They are pointing us to  increased ‘vigilance” by federal  agencies to ensure that current laws are applied in a way that addresses future technologies.

Politico | AI legislation is going nowhere

 Illinois Governor signed SB 1782 (2023 | IL) that requires parents of kid social media influencers to set aside their kids’ gross earnings in a trust that the child can access when they turn 18. It’s kinda like Coogan’s law in California that sought to prevent parents from profiting from their kids’ work in Hollywood. Washington State is considering giving kids the option to permanently delete their kid influencer content when they turn 18. A legislative hot topic.

Route Fifty | New ‘kidfluencer’ law allows child social media stars to sue parents

 A report from the ACLU suggests that constitutional protections need to be reflected  in drone regulations. This incudes imitations on the type of and amount of data collected from the devices, standards for program performance audits and transparency requirements such as the publication of drones’ tech capabilities. 

Route Fifty | Policing police drones: How regulations can protect privacy while expanding public safety

NCSL has released a policy report on artificial intelligence. At least 16 states have passed legislation or resolutions concerning artificial intelligence since 2020. This includes Colorado that enacted legislation in 2021 that prohibited insurers from using algorithms or predictive modeling in a way that unfairly discriminates based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity or gender expression.   

Route Fifty | Regulate AI? Here’s what states need to know

California’s SCR 17 (2023 | CA) is the nation’s first artificial intelligence resolution. SCR 17 is California’s “commitment to examining and implementing specified principles related to the use of AI,” It creates an A.I. bill of rights to protect the “rights of the public while leveraging the benefits of AI.”

The Reporter | Legislature adopts Dodd’s AI resolution

New York Times Dealbook tells us that the SEC Chief thinks artificial intelligence could bring financial crisis. The reason why:  “It has to do with this powerful set of economics around scale and networks.” Last month the SEC  proposed a rule requiring platforms to eliminate conflicts of interest in their technology. 

This week the Pope said artificial intelligence has “disruptive possibilities and ambivalent effects.” Rewind 3 years ago and the Vatican collaborated with Microsoft on ethical standards for artificial intelligence.

Reuters | Pope warns against potential dangers of artificial intelligence

New York Times introduces us to Worldcoin, a crypto project seeking to scan billions of human irises. How do your state laws keep up with this type of biometric information gathering.

The City of San Jose has warned its employees that the use of ChatGPT is subject to public disclosure.

City of San Jose |Generative AI Guidelines

Massachusetts Governor Maura Healey issued Executive Order 614 created a Chief Information Technology Accessibility Officer with the policy goals to establish, adopt, and maintain digital accessibility and equity standards, guidelines, and policies; the development of strategies and platforms to promote best practices for digital accessibility and equity; the development, in consultation with other executive branch offices and agencies, of procurement policies, contractual standards, and other related documents to promote digital accessibility and equity; and the consideration of federal funding opportunities for digital accessibility and equity priorities.

Access to power and environmental concerns are coming for Northern Virginia’s Data Center Capital title. Data centers have such an impact in Northern Virginia that Loudoun County data center tax revenue is near $600 million a year. That’s ample revenue to cover all the county’s operating expenditures.

Governing | The Data Center Capital of the World Is in Virginia

This headline on an opinion piece in The Hill caught my attention: “Why Texas is the canary in the crypto mine”  The authors say Texas has cheap energy, “receptive regulators,” and is home to one of the largest crypto mining hubs in the world. This combination of traits puts Texas on the cutting edge of crypto currency legislation.

Arkansas legislators are calling for a repeal of the recently enacted, HB 1799 (2023 | AR), the “Right to Mine” bill supporting the crypto mining industry. Why the repeal? some say the bill passed too quickly under auspicious circumstances.  Others say, “Number one is the energy usage from these crypto mining facilities—they’re tremendous amounts. Right now, we’re already getting warnings that there may be possible brownouts or blackouts,” says State Senator Bryan King (R) of District 28.

ABC 7 | Arkansas senator seeking repeal of controversial new crypto mining law

Counties in Arkansas are rushing to pass noise and nuisance regulations for crypto mining before a state law takes effect that limits local regulation of data centers & crypto mining. A state representative had quite a lively experience when he visited a crypto mining facility : “a security guard got out of his car, pulled an AR-15 out of his trunk, and filmed them. Kendrick said this was just one example of bad neighbor-like conduct by crypto operations.”

Arkansas Democrat Gazette | Several Arkansas counties race to pass crypto mining limits

California’s lookout cameras will be equipped with AI to give faster alerts of wild fires. This use of AI was sparked by 2021 legislation that created the Office of Wildfire Technology, Research and Development.

Santa Rosa Press Democrat via Governing | Cal Fire Equips Artificial Intelligence Wildfire Response System

A Houston Chronicle investigation found that Shot Spotter technology hasn’t made a dent in crime statistics. Since implementation, response times by police officers has spiked. “Does (ShotSpotter) pull patrol officers off of other calls? Absolutely,”  Douglas Griffith, president of the Houston Police Officers’ Union said. “But it gets our guys there very quickly and helps us, one, to stop any shooting that’s actively taking place, and No. 2, it also saves people that have been shot…You take the good with the bad.”

Houston Chronicle | Houston’s gunshot alert system isn’t curbing violence but delays police response times, data shows

Dayton, Ohio is saying bye-bye,bye to using shotspotter technology that had been alerting its police force to shots fired. Why did they stop using it? According to the Dayton Police Department, it was difficult to prove the effectiveness of the technology. Researchers say the microphones Shotspotter uses can count fireworks as shots, and can miss shots fired directly under the microphone.

Route Fifty | Why Dayton quit ShotSpotter, a surveillance tool many cities still embrace

The world can be a scary place. I just read AI is now imitating voices of your friends, family members, and colleagues to make scam calls to extort money/data/information. There’s a special place for people who do this.

Route Fifty | AI scam calls imitating familiar voices are a growing problem—here’s how they work

CALPERS and CALSTARS both reported data breaches this past month. Hackers accessed names, social security numbers, birth dates and other confidential information of roughly 769,000 retirees and beneficiaries. The hackers accessed the information through a vulnerability in a vendor’s cybersecurity system.

Governing | The Nation’s Two Biggest Pension Systems Report a Data Breach

At the start of the Ukraine war, hackers tweaked charging stations along the Moscow–Saint Petersburg motorway in Russia to show anti-Putin messages. A charger in Illinois has been hacked with anti-Biden messages. In May of 2022 the Journal of Energies published an article discussing the vulnerabilities of public EV chargers. It is recommended that home chargers not be connected to the internet. Here’s the big picture folks: imagine if multiple public EV chargers are hacked, and together these 1000s of grid access points are a means to attack the grid.

Route Fifty | Hackers already infiltrate EV chargers. It could get worse.

Washington State’s Liquor and Cannabis Board will take up proposed rule changes on biometric identification for liquor purchases. There’s a long line of vendors for the technology.

The conversation started because a law firm representing food and beverage businesses that serve alcohol raised the issue. All signs point to the board waiting for the Legislature to act.

Route Fifty | Handprints for IDs? State liquor board discusses biometrics for alcohol sales

New Jersey Legislature is tackling deep fakes. I want to say there is a joke here, but let’s reward positive behavior. The bill, S3926 (2023 | NJ) would create a new crime by adding “false depiction through such manipulated media to the state’s identity theft statutes.” Defraud a single person, 18 months in jail. Defraud 5+ people, 5 years in jail. The person whose identity was used can also pursue civil cause of action.

Route Fifty | New Jersey Lawmakers Take Bipartisan Swing at Deepfake Regulation

Connecticut is on its way to an a.i. bill of rights. Public Act 23-16 (2023) would create a special committee to “make recommendations on how AI should be regulated and on a potential bill of rights based on the blueprint released last year by the White House Office of Science and Technology Policy.”

Route Fifty | Governor Paves the Way for an ‘AI Bill of Rights’

For years, drones were prohibited in the boroughs. Now a $150 permit and NYPD approval gets you drone time. The requirements are that you apply more than 1 month out,  be insured,  have certificate of authorization from the Federal Aviation Administration, &  disclose what they hope to record.

Governing | Drone Operators Balk at NYC’s Strict Permitting System

 Maryland became the first state to offer digital driver’s licenses on both Apple and Android platforms. The digital driver’s license stored in your phone’s wallet can be used at airport checkpoints. As an added safety measure, Maryland consumers have control over what information is disclosed to the person checking the driver’s license ID.

Governing | Maryland Becomes First State With Apple, Android Digital Licenses

Opponents to crypto mining in Arkansas point to noise pollution, tons of carbon emissions, and foreign investors.

KUAF | Cryptocurrency mining in Arkansas generating public opposition

A new report from the National Association of Counties found that “50% of counties use the controls outlined in the National Institute of Standards and Technology’s (NIST) Security and Privacy Controls for Information Systems and Organizations special publication. ” 30% use a cybersecurity program designed for the county specifically, 18% don’t know what cybersecurity program is used, and 20% do not use a standardized cybersecurity program.  60% of local county elected officials see cybersecurity as a top priority, or a priority.

Route Fifty |  Cybersecurity Standards Gain Ground in Counties

Connecticut passed legislation to reign in AI. The bill would do two things: (1)  require state agencies to inventory and assess government systems that use A.I.; and (2) create a permanent working group to recommend further A.I. rules.

Route Fifty | AI Is Used Widely, but Lawmakers Have Set Few Rules

Florida banned state government purchases of foreign made drones starting January 1, 2022.

FL Department of Management Services | ARCHIVE Approved Drone Manufacturers

Arkansas banned the use of foreign made drones in the state. HB 1653 (2023 | AR)

Michigan is looking for a software vendor that can develop a vendor security rating snapshot for all Michigan vendors. The data goal is to receive ongoing security snapshots of vendor information that includes a security rating, & how the vendor measures up against its peers in areas like botnet inspections, open ports, spam propagation, the frequency of its patching and file sharing.

Route Fifty | State Looks to Better Assess Vendor Security

As promised, the New York Attorney General has released proposed crypto legislation, CRPTO Act. The legislation would Stop Conflicts of Interest, Require Public Reporting of Financial Statements, and Bolster Investor Protections. Investor protections include brokers would have to know essential facts about their customers, and requiring crypto brokers and marketplaces to only conduct business with firms that comply with KYC provisions; banning the use of the term “stablecoin” unless the currency is backed by U.S. currency; and requiring platforms to reimburse customers who are the victims of unauthorized asset transfers and transfers resulting from fraud.

This week ABI Research released crybersecurity spending study that shows cyber security spending growing at a 13% compounded annual rate. Total spending by 2027 will reach $236 billion annually.

New York City is prohibiting artificial intelligence in employment decisions like hiring and promotion. Candidates have to be notified if ai is being used in the employment process, requires annual independent audits of the ai software, and companies can be fined for violations.

NYTimes | A Hiring Law Blazes a Path for A.I. Regulation

New York Attorney General is calling for increased cryptocurrency transparency. The legislation will be released any day now & will have these 3 goals: reduce potential conflicts of interest, require public reporting of financial statements and improve protections for investors.

Governing | New York’s Letitia James Wants Increased Crypto Transparency

Now that Montana Governor signed the statewide TikTok ban, here comes the legal battle. Free speech lawyers call it unconstitutional. Montana’s Governor went the other way and directed some state employees to bar the use of all social-media applications tied to foreign adversaries on state equipment and for state business in Montana.

WSJ | TikTok Ban Signed in Montana, Paving Way for First Amendment Legal Battle

Last week an annual Government Social Media Conference gave rise to twitter concerns. For local government communications professionals twitter is described as a hellscape once the blue checkmark verification disappeared. With no verification, local government disinformation grows thanks to fake accounts run by bots.

Governing | Government Asks: Is it Time to Pull the Plug on Twitter?

Montana passed its statewide TikTok ban. In the legislative process the bill’s provisions providing for fines to app stores that sell TikTok was removed leaving the bill without clear enforcement parameters. The bill does place enforcement powers with the Montana Department of Justice- what they’re suppose to do… who knows…“This bill is breathtakingly obtuse in its approach,” said Andy Green, an assistant professor of information security and assurance at Kennesaw State University.

Route Fifty | Enforcement Questions Dog State’s Proposed TikTok Ban

So far in 2023, we’re up to 7 states that have passed  state-level consumer data privacy law like California’s. Joining California in 2023 are Iowa and Indiana which followed Colorado, Utah, Virginia, and Connecticut. Its looking like state level consumer data privacy laws, like California’s, appeals to both red and blue states.

ALEC | States Passing Major Communications and Technology Legislation in Lively 2023 Sessions

Arkansas made exceptions to its social media for kiddos legislation by exempting the dancing social media: You Tube, the most popular social media application for kids, and TikTok.

The Verge | New Arkansas bill to keep minors off social media exempts most social media platforms

CNN | Arkansas governor signs sweeping bill imposing a minimum age limit for social media usage

California has removed a provision from its social media for kids bill that would have permitted to sue social media companies for “addictive design features,” . SB 287 (2023 | CA) Tech lobbying efforts by top trade associations for the technology industry, NetChoice, which represents Meta, Google, Amazon, TikTok and Twitter, and TechNet, which represents Meta, Google, Amazon and Snapchat led to the removal of this litigation provision.

SB 152 (2023 | UT) regulates kiddos use of social media. It stands out from the crowd by putting a curfew on social media use at 10:30 pm with an exception for LinkedIn. Social media companies must makes sure kiddos can’t find a work around.

Salt Lake Tribune | Utah first state to pass social media regulations aimed at protecting minors

IBM’s Institute for Business Value report, Electric vehicles: An on-ramp to sustainable mobility, points to the nature of EVs being in constant contact with other things like chargers and other vehicles as what makes them ripe for hackers. Here’s where things get interesting, this report ties this hacking risk to insurance. How do insurance companies assess these new automobile risks?

GCN | EVs rev up cybersecurity challenges

For the first time, Microsoft is supporting a right to repair bill that allows independent repairmen to repair tech. HB 1392 (2023 | WA) Why the change of heart? Microsoft said that “This bill fairly balances the interests of manufacturers, customers, and independent repair shops and in doing so will provide more options for consumer device repair.”

Grist | Microsoft quietly supported legislation to make it easier to fix devices. Here’s why that’s a big deal.

A survey of CEOs says that 65% of CEOs think AI will have a big impact their businesses in the next 3-5 years. 77% of the ceos think AI will have a larger impact on society. 60% said their companies are 1-2 years from implementing any AI.

WSJ | Goldman Sachs CIO Tests Generative AI

The FTC is proposing to prohibit Meta from monetizing data of minors. Meta calls this ” “a political stunt.” Seems to fit in line with state legislation concerning minors and social media.

CIO | WSJ | FTC proposes barring Meta from monetizing young users’ data.

California is considering  AB331 (2023 | CA) that creates a structure to regulate artificial intelligence by focusing on a.i. that affect consequential decisions like impacting certain enumerated individual rights and opportunities, such as employment, education, housing, health care or health insurance, and financial services. There are exemptions for developers and small entities.

Florida Legislature has advanced a Digital Bill of Rights that SB 262 (2023 | FL) and HB1547 (2023 | FL) . Both bills give consumers the right to opt out of sharing their data; companies must obtain permission to collect and sell personal data; establish new disclosure requirements so that customers know when and if their personal data is collected.; and prevents (tech) companies from selling personal data to a data broker without consent.

Governing | Florida Advances ‘Digital Bill of Rights’ Aimed at Big Tech

Know how ChatGPT works? People upload data for ChatGPT to comb. It turns out some people upload personal information knowingly or unknowingly. This includes propriety information, as programmers at Samsung’s Korean semiconductor business discovered. National Association of Counties Chief Information Officer Rita Reynolds suggests that counties develop a responsible AI policy that addresses privacy and data security, transparency and accountability, fairness and bias as well as informed consent.

Route Fifty |  ChatGPT’s Other Risk: Oversharing Confidential Data

Montana Legislature is considering a bill SB 178 (2023 | MT) to define crypto currency and digital assets as personal property. What does that even mean? Montana says it wants to protect the rights of people and businesses when it comes to their digital assets.

Montana Legislature banned TikTok from operating in the state. Opponents came from the ACLU to libertarians. The bigger picture is the litigation that will emerge from the ban.

WSJ | Montana Lawmakers Approve Statewide Ban on TikTok

NPR | Montana becomes 1st state to approve a full ban of TikTok

SB1236 (2023 |AZ) was vetoed by the Arizona Governor because the bill would have prevented local policymaking about emergent and potentially energy intensive economic activity. The industry says the bill would have stopped local authorities from imposing taxes on individuals and businesses running blockchain nodes. 

Coin Telegraph | Arizona governor vetoes bill targeting taxes on blockchain node hosts

NYC is proposing ordinances to ban facial recognition software for use by businesses who use it to track customers and ban its use by residential buildings. Currently the only other city limiting private sector use of facial recognition software is Portland, Oregon.

Bloomberg Law | NYC Lawmakers Seek Ban on Facial Scans to Identify Customers (2)

Italy banned ChatGPT because it couldn’t verify user ages, couldn’t prove it wasn’t violating copyright laws, and generally had no legal basis for doing what it does. The ban is being lifted if ChatGPT complies with rules concerning “transparency, the right of data subjects – including users and non-users – and the legal basis of the processing for algorithmic training relying on users’ data.”

ComputerWeekly.com | Italy to lift ChatGPT ban subject to new data protection controls

1000+ tech leaders and researchers have signed an open letter calling for a pause in artificial intelligence citing the profound societal risks. The signatories say the industry ethical standards,  Asilomar AI Principles, are not being followed.

“Humanity can enjoy a flourishing future with AI. Having succeeded in creating powerful AI systems, we can now enjoy an “AI summer” in which we reap the rewards, engineer these systems for the clear benefit of all, and give society a chance to adapt. Society has hit pause on other technologies with potentially catastrophic effects on society.^[5]  We can do so here. Let’s enjoy a long AI summer, not rush unprepared into a fall.”

Future of life institute | Pause Giant AI Experiments: An Open Letter

The FDA has indicated it will stop approving medical devices with cyber security concerns. Beginning October 1, 2023 devices will have to meet cyber security requirements of the the FD&C Act, section 524B “Ensuring Cybersecurity of Devices.”

FDA | Cybersecurity in Medical Devices: Refuse to Accept Policy for Cyber Devices and Related Systems Under Section 524B of the FD&C Act

SB 1751 (2023 | TX) would not only limit crypto mining in state demand response programs, but would also prohibit tax abatements for crypto mining.

Decrypt | New Texas Senate Bill Seeks to Slash Bitcoin Mining Incentives

The Florida Governor has announced a plan to ban central bank digital currencies. He referred to cbdc’s as “woke ideology.” Also of note, a poll says 56% of Americans have a positive view of woke as being informed.

Miami Herald | What does it mean to be ‘woke?’ Majority in the US have positive view, study finds

Fortune Crypto | Ron DeSantis proposed a bill to ban CBDCs. A trade policy professor calls that ‘a little ludicrous’

The Hill | DeSantis goes after digital currency in attempt to ban federal effort

 A report by the National Association of State Chief Information Officers (NASCIO) and National Governors Association (NGA) tells us the if states prioritize diversity, equity, inclusion and belonging in their recruitment, hiring and retention practices and collaborate with the private sector, academia, nonprofits and other stakeholders, states can build a pipeline of workers for the thousands of cybersecurity vacancies. The report also talks about states needing to modernize their workforce with  flexible schedules, remote work options and ways to address employee burnout and mental health challenges.

Route Fifty | State Cyber Workforce Challenges Reaching ‘Crisis Levels’

SF262 (2023 | IA) follows in the legislative footsteps of Colorado, Connecticut, Utah and Virginia. This consistency on notice requirements gained support from businesses and the Technology Association of Iowa.

International Association of Privacy Professionals | Iowa set to finalize sixth US comprehensive state privacy law

Illinois wants to follow in New York’s footsteps and create a license for bitcoin. Fintech-Digital Asset Bill (HB 3479/SB 2233)  and Financial Protection Bill (HB 3483/SB 2232) The pair of bills will create a license and regulatory structure for cryptocurrency and will establish consumer protections.

State of Illinois | IDFPR Announces Landmark Legislation to Launch Illinois Consumer Financial Protection into the Digital Age

Yahoo! Finance | Illinois Officials Pushing State Crypto Licensing to Emulate New York’s BitLicense

South Dakota Governor vetoed a bill that excluded cryptocurrency from the state’s definition of money. The veto statement also called on the 20 other states considering similar legislation to veto those bills.

@Govkristinoem veto statement

Connecticut wants to create the Office of Artificial Intelligence, create a government task force to study the emerging technology, and develop an AI bill of rights. SB 1103 (CT | 2023)

Governing | Some Concerned About Connecticut’s Extensive AI Use

Misinformation around elections has led to many states combatting misinformation. Naturally, Gallup wants peoples opinions on this. 40% of republicans think elections are accurate while 85% of democrats do. Overall 63% of Americans are confident in election results. This is the largest partisan gap since 2004.

Governing | State and Local Govs Prepare for 2024 Misinformation Fight

Can you buy a gun with crypto currency? Not anymore in South Dakota. HB 1193 (SD | 2023 ) for those in the legislative process, this isn’t a standalone bill but was included in a UCC bill.

South Dakota’s HB1193 (2023 | SD) would amend the state’s UCC (Uniform Commercial Code) to prohibit cryptocurrency but permit Central bank digital currencies.

60% don’t want AI in their health care. 1/3 believe health outcomes would be worse with AI.

The Hill | Majority in new poll would be uncomfortable with health care provider relying on AI

ChatGBT writes bills. Great… considering the weird things some AI programs are saying. Massachusetts legislators used ChatGPT to write an AI bill, SD1827 (2023 | MA) The legislators advice: AI isn’t ready to write legislation.

Governing | Lawmakers Experiment With ChatGPT to Write Bills

Nevada Legislature is considering a bill that would create a statewide securities restitution fund for victims of securities fraud. This issue is being dominated by crypto actions in our media feeds. The state would use securities enforcement actions to fill the coffers of the restitution fund. The Nevada Secretary of State, the brains behind the idea, said the bills would be a means to make victims whole.

2News | Secretary of State Introduces Bill to Help Victims of Securities Fraud

Mississippi Senate passed its Digital Asset Mining Act, SB 2603 (2023 | MS) . The bill will accomplish 3 things: protect crypto mining equipment in industrial zones from land use enforcement actions; prohibits charging mining companies unfair energy fees; and removes miners from the definition of “money transmitters.”

Bitcoinist | On Crypto And Discrimination: Mississippi Passes Bill Protecting Crypto Miners’ Rights

Montana wants to protect Crypto Miners. A county in Montana was the first in the nation to create zoning laws to protect residents from crypto mining. SB 178 (2023 | MT) would up end Missoula’s zoning protections by ” protecting at-home mining, prevents discriminatory utility rates for miners and stipulates that crypto used as payment will not be subject to additional taxes.” It also prohibit local governments from using zoning to shut down crypto mining.

CoinDesk | Montana Senate Passes Bill Protecting Crypto Miners

Let’s meet the contenders: Georgia has SB 93 banning TikTok from state devices with the exceptions for use by law enforcement, academic researchers and judicial proceedings. An Arizona legislator will amend a technical correction bill to add a TikTok ban for state devices and restrictions on higher education networks. Florida Governor has announced a bill is forthcoming to ban TikTok on college campuses.

Atlanta Journal Constitution | Senate panel approves bill limiting use of TikTok, other social media

Fox10 | House Bill 2416: What you should know about Arizona’s proposed bill to ban TikTok on some devices

Tampa Bay Times | DeSantis says bill banning TikTok on college, school campuses coming

New Jersey’s Digital Asset and Blockchain Technology Act supporters say it goes further than New York’s crypto currency legislation by addressing custody issues. It will require that  digital assets custody must maintain “an amount of each type of digital assets sufficient to satisfy the aggregate entitlements of the persons to the type of digital asset.” 

Blockworks | How New Jersey’s Crypto Bill Could Impact Industry Firms in the State

Texas Legislature may consider a sales tax holiday for cryptocurrency purchases. The sales tax holiday would last 2 years. Forbes notes that “NFL football team the Houston Texans for payment of single-game box suites since August 2022.”

Forbes | No Tax On Crypto Purchases — Texas Proposals Go Big On Digital Assets

States that have added NFTs to their tax structure are Pennsylvania and Washington State. Each state’s Department of Revenue provided guidance for the application of the state sales tax to NFTs. Read Pennsylvania’s and Washington’s

Route Fifty | Top Sales Tax Trends to Watch in 2023.

Maryland is considering a regulatory framework for the ruse of facial recognition software. HB 223 (2023 | MD) The author referred to having a system with no rules or training creates a Wild Wild West scenario.

The bill would require training, annual compliance, and limit the use of facial recognition software to these crimes: violent crimes, human trafficking offenses or ongoing threats to public safety or national security.

Governing | Maryland Bill Would Ban Some Police Use of Facial Recognition

Civil litigation against endorsers/promoters of cryptocurrency and NFTs is picking up steam. It seems celebrities who endorsed these items didn’t realize their state and federal rules for endorsing investments. Ooopsie Daisy.

@WallStreetJournal

Congressional Financial Services Chair Patrick McHenry this week pointed to blockchain, the underpinnings of cryptocurrency, as ripe for data privacy legislation. Policy issues are: who owns the data parts in blockchain technology? Do we protect tri-party authentication? Do we abandon username and passwords? Are we protecting the data in its pieces along the way and together?

Politico | House GOP’s crypto pointman is curious but skeptical

The Dommsdayers are here! The Dommsdayers are at Davos! According to the World Economic Forum, “93% of cyber leaders, and 86% of cyber business leaders, believe that the geopolitical instability makes a catastrophic cyber event likely in the next two years.”

Popular Mechanics| A Catastrophic Mutating Event Will Strike the World in 2 Years, Report Says

Miami Heat’s Stadium is owned by the country. The county contracted with FTX for a 19 year naming rights deal with FTX. The contract has been terminated.

Miami’s Republican Mayor championed Miamicoin. Miami was the first city to enter cryptocurrency waters. It launched in August 2021. It has since lost 99% of its value.

Route Fifty | Miami’s Mayor Un(block)chained

New Hampshire’s Commission On Cryptocurrencies And Digital Assets has recommended a statewide bitcoin energy plan. Positive energy impacts highlighted are a more stable electricity grid, more sustainable generation projects, and lower costs for consumers. The commission also recommended regulation to protect consumers.

Bitcoin Magazine | NEW HAMPSHIRE COMMISSION RECOMMENDS STATEWIDE BITCOIN MINING ENERGY PLAN

What is happening? More communities are reluctant to want a data center in their backyard because of environmental and noise concerns. In Virginia, data centers are the state’s largest category of commercial energy users. Meet SJR 240 (2023 | VA) calling for a study of data center impact on environment, economy, energy resources, and ability to meet carbon-reduction goals.

Route Fifty | Communities are Rethinking Their Push for Data Centers

What is happening? A bankruptcy judge in New York ruled that crypto deposits with Celsius Network do not belong to the person making the deposit. Seems rather weird, but then you learn that the Celsius agreement for users contained that language. ” you grant Celsius . . . all right and title to such Eligible Digital Assets, including ownership rights, and the right, without further notice to you, to hold such Digital Assets in Celsius’ own Virtual Wallet “

Why is this important? Hello regulation writers add this to your list.

Fox Rothschild LLP | Cryptocurrency Deposits Do Not Belong to Account Holders: New York Bankruptcy Holding Severs Customers’ Right and Title to Crypto Assets Deposited in Celsius Network Earn Program Accounts

Claiming success in banning crypto mining powered by fossil fuels in NY, supporters have moved onto a national study of crypto mining that would “evaluate the effects of the industry and mandate reporting of emissions from mining operations using more than 5 megawatts of electricity.”

Politico | New York partially banned cryptocurrency mining. Now environmentalists want more.

This week Texas released a new broadband map spotlighting areas in the most need. Also new  in Texas is proposed legislation to create a new Broadband Funding plan that draws from existing sales tax revenues. Hello, SJR 27 (2023 | TX) & SB 377 (2023 | TX)

What is happening? The Semiconductor Industry Association says that there is $200 Billion in private sector investment for new and expansion projects at 42 sites across 16 states. From 1990 through 2020, the U.S.’s share of global microchip fabrication slid from 40% to 12%. Texas will account for $56 Billion of the $200 Billion in private investment. 

Why is this important? Taiwan and South Korea lead in semi conductor fabrication capacity. Taiwan has 92% of leading-edge semiconductor production. The U.S. addressed this with the $280 billion CHIPS and Science Act that has $52 billion for semiconductor research and development, manufacturing and workforce initiatives. 

Route Fifty | The Places Seeing Growth in the Semiconductor Sector So Far

What is happening? Texas ranks 4th most favorable state for crypto enthusiasts. NV, CA, and Fl are ahead of Texas. Recommendations from The Texas Work Group on Blockchain Matters include: incentives for companies that don’t make money off monetizing data, “embracing its tradition of individual liberty,” and by “making it explicit that the U.S. Constitutional protections against unreasonable search and seizure extend to activity on the internet.”

How does this fit with recent FTX bankruptcy headlines? “What FTX does is gives us a fantastic contrast to the way some Texas businesses are actually approaching Bitcoin, taking a much more fiscally conservative approach. We feel like the blowback from a regulatory perspective would be detrimental to Texas businesses that are getting it right.” According to  Christopher Calicott, managing partner at Austin-based Trammell Venture Partners, a member of The Texas Work Group on Blockchain Matters.

Governing | Texas Still Wants to Become Nation’s Cryptocurrency Leader

What is happening? Ever wondered how much water is needed to cool data centers? A city in Oregon had prevented the water usage from becoming public, but now the data is free for the world to consume. To cool Google’s data centers in Oregon it takes 274.5 million gallons. World wide data centers require 4.3 billion gallons of water. This world wide number is similar to the water usage of 29 golds courses in the U.S. Southwest. Fun with facts.

AP | Oregon city drops fight to keep Google water use private

What is happening? Bonjour, HB 896 (2023 | TX), that will require social media platforms to verify user ages and prohibit users under the age of 18. “Social media is the pre-1964 cigarette. Once thought to be perfectly safe for users, social media access to minors has led to remarkable rises in self-harm, suicide, and mental health issues, Patterson said.”

Governing | Texas Bill Would Ban Social Media for Everyone Under 18

What is happening? 18 Republican Governors have banned TikTok on state devices. Some states are also banning WeChat, QQWallet and AliPay from other Chinese companies.  Anton Dahbura, executive director of Johns Hopkins Information Security Institute, a cybersecurity academic and research center says that “It’s not just the obvious security that someone could bring down the power grid. It’s infiltration of systems to obtain confidential information that is quite valuable to foreign actors.”

Why is this important? In the US companies track your data for marketing purposes. In China, companies are required to share tracked data with the Chinese Government.

Route Fifty | Governors’ TikTok Bans Make Sense, Cybersecurity Experts Say

What is happening? Add Texas to the list of Governors that have used executive powers to ban the use of TikTok on state devices. The governor’s message includes this statement: “The threat of the Chinese Communist Party to infiltrate the United States continues to grow. While the federal government holds the ultimate responsibility for foreign policy issues, the State also has the responsibility and opportunity to protect itself…”

CBS DFW | Gov. Greg Abbott bans TikTok on state-issued devices