Herbert Hoover promised citizens a chicken in every pot; public policy experts in Texas are now promising a "smart card" in every wallet. These experts are increasingly convinced that smart card technologies, or computer chips on plastic cards, have the potential to shape government services in dramatic new ways. Texas already runs the largest card-based benefits program in the world--the Lone Star Card, currently used for food stamps and welfare benefits. Several state agencies are investigating an expansion of the Lone Star Card's capabilities to provide new services. The card may become a statewide "platform" for making a myriad of government services available to every state employee and potentially every Texan. A policy research project (PRP) at the LBJ School spent the past two semesters investigating potential public sector uses of smart card technologies. Working with the Texas State Comptroller's Office, project members have gathered a wealth of information that is being made available to agency representatives and technology experts through a Web site on the Internet, an electronic newsgroup, an educational seminar, and an areawide technology conference. According to Professor Lodis Rhodes, who is directing the project along with Gary Chapman of the 21st Century Project, the central goal of smart card technology programs is to increase agencies' ability to reach and serve their constituents. "The Lone Star Card grew out of the state's drive to improve efficiency and reduce costs without sacrificing the quality of services delivered," said Rhodes. "That concept is one that doesn't always translate well in the public sector, but in this case it actually did what it was supposed to do." He explained that the PRP's role is to help the Comptroller's Office and other state agencies understand the technological and financial implications of smart cards as well as the social and community values that are affected by this new technology. "Societal values are reflected in the way social policy is made and carried out," said Rhodes. "Because of that, decisionmakers have to ensure that these values won't be compromised in the rush to implement new technologies."

Among the issues that must be considered, said Rhodes, is the matter of security of electronic records. "We must be confident we can keep records secure to protect people's privacy," he said. "Citizens will not support the idea of losing control of who has access to information maintained by government, whether it be health records or financial data or professional credentials." He added that smart cards will be much more versatile than many people think. "In addition to financial transactions, they can be used to provide information, such as evidence of insurance, and to provide access, for example to enter a state park or a secured office area."

The main product of the PRP is a Web site designed to provide agencies and policymakers with current information about the various kinds of smart card applications and how they are being used in Texas and in other states. The site, called "Electronic Benefits Transfer in Texas State Government" (http://www.utexas.edu/lbj/rhodesprp/index.html), includes a glossary of smart card terms and policy briefs on business, technology, and policy applications of smart cards. By the end of the spring semester, the site will also include the project's final report to the Comptroller's Office. In addition to the development of the Web site, project members have shared their findings through briefings, including one held April 23 at the LBJ School, and participation in an areawide technology conference, scheduled for May 12 at the J. J. Pickle Research Center. The May conference, called the "Electronic Commerce Solutions Summit and Vendor Exposition," will address broad issues surrounding the use of electronic commerce in state business. Two students from the LBJ School project will present their findings and act as panel moderators during the event. Jeremy Mazur, who will be on a panel called "Biometrics and Positive ID--Policy Issues and Controversies," will present information on policy trends related to privacy. Mike Betz will talk about the pros and cons of using smart card technologies from a business perspective. He will be on the "Integrating Technologies" panel. Information about the event, which is being cosponsored by the LBJ School, the 21st Century Project, the state's Department of Information Resources, Comptroller's Office, General Services Commission, and other organizations, can be found at http://www.state.tx.us/EC/EC-Solutions-Summit.htm.

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