Use "signal phrases" to introduce your quotes. They make your paper more pleasant to read and easier to understand than "dropped quotes." For example, this paragraph with a dropped quotation......

In 2000, the legislature of Suffolk County passed a law restricting drivers' use of handheld phones. "The bill prohibits the use of a cell phone while driving unless it is equipped with an earpiece or can act like a speakerphone, leaving the driver's hands free." 3

....can be improved by adding a signal phrase:

In 2000, the legislature of Suffolk County passed a law restricting drivers' use of handheld phones. According to journalist Tina Kelley, "The bill prohibits the use of a cell phone while driving unless it is equipped with an earpiece or can act like a speakerphone, leaving the driver's hands free." 3

Here's another example of signal phrase, this time used to signal a paraphrase:

One driver, Peter Cohen, says that when he was rear-ended, the guilty party emerged from his vehicle still talking on the phone. 4