The EFF reports that North Carolina Illegally Certifies Diebold E-voting System. It's actually three companies that were certified: Diebold, Sequoia Voting Systems, and Election Systems & Software. At issue was whether they could escrow the source code used and identify the programmers. None could do so. "Diebold claimed that it could not comply because of its reliance on third-party software." The law says NC needed to reject all applicants and put it out for bid again, instead they approved all applicants.
Honestly, the law seems reasonable and shouldn't be that difficult to achieve. "Nebraska-based Election Systems & Software -- has publicly stated that it is capable of meeting the escrow requirement for the code used it its system."
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