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Oregon Groups Stand Against Net Taxes
by Liza Porteus
A bill to ban Internet sales taxes is on its way to the Oregon House after winning Senate passage, and grassroots activists are celebrating the moment.
Citizens for a Sound Economy (CSE), whose Oregon branch drafted the legislation, conducted its second annual CSE Day at the state Capitol last week after the Senate passed S.B. 660, which was sponsored by Senate Majority Whip Jason Atkinson, R. The event brought more than 200 grassroots activists to lobby on issues like Internet taxes, the environment, tax cuts and education.
CSE Director Russ Walker gave a presentation on various bills, while Atkinson and tech entrepreneur Craig Berkman highlighted the Internet tax bill's significance to state consumers. Each activist was given the opportunity to discuss the bill with their legislators during one-on-one lobby meetings. More than 400 visits were conducted.
Oregon currently does not collect sales taxes on e-commerce, but the bill would prevent the state from doing so in the future.
"By banning Internet taxes ... we have told Oregonians and e-businesses we want to protect them and protect access to the Internet," Atkinson said in a radio address April 18. He said that with Congress still undecided on whether to extend the current moratorium on Internet access taxes -- and on whether to take a legislative stand on e-commerce taxation -- the Oregon bill serves as an example of the state stepping up to the plate in the debate, "which will set Oregon apart from other states as a safe haven" for e-businesses, he said.
"It really levels the playing field and says Oregon is very progressive," Atkinson said.
In other CSE news, the Microsoft-friendly group convinced former U.S. Sen. Lauch Faircloth, R, to send a letter to North Carolina Attorney General Roy Cooper urging him to end the Tar Heel State's involvement in the states' antitrust suit against Microsoft. CSE has been lobbying officials in states like North Carolina and Utah to drop out of the case.
"I believe now that the best thing our state can do for Microsoft and consumers is to let them make decisions for themselves," Faircloth wrote April 19. "I believe that the ongoing antitrust lawsuit against Microsoft is an example of government gone wrong."
Cooper has said he is reevaluating his state's role in the case. Erick Gustafson, CSE's director of regulatory and technology policy, said CSE will meet with Cooper soon. He said Microsoft asked Cooper to meet with company representatives while attending the National Association of Attorneys General Internet law conference in Boston this week, but Cooper said he would rather meet in North Carolina.
Gustafson said many North Carolina lawmakers are "very interested in dropping the case, but they have some in-state political issues" to work out.
California Panel Approves Voting-Technology Bills
The California Assembly Elections Committee this week tackled two voting-technology bills. The sponsors of A.B. 55 and A.B. 56 now back each other's bills, which means they could move as a package, according to the California Voter Foundation.
Before approving A.B. 55 on an 11-4 vote, the committee amended it to include provisions on training poll workers, allowing Internet voting at polling places and posting a "voters' bill of rights" at precincts. But some lawmakers expressed concern about the absence of a paper trail with electronic voting.
Chris Reynolds, Secretary of State Bill Jones' spokesman, said the secretary of state would support the measure if funding for voter outreach were provided. Reynolds said another bill, A.B. 1651, likely would be amended to provide such funding.
A.B. 56 would require the Information Technology Department to award $300 million in grants to counties for the purchase of updated voting systems. The committee approved that measure unanimously on the condition that it would be amended to address concerns about the paper trail and security. Both bills now go to the appropriations committee.
ACLU Criticizes Bush's Attitude Toward Voting Reform
With the U.S. House holding its first hearing on election reform Wednesday, the American Civil Liberties Union (ACLU) said President Bush and congressional Republicans are not doing enough to fix the nation's election system.
"To borrow a basketball metaphor," said Christopher Anders, an ACLU legislative counsel, "it looks like President Bush and the majority party are trying to run out the clock on election-reform legislation." Despite the need to act quickly, Anders added, Bush did not include any funds for election reform in the budget he sent to Congress.
The ACLU has filed lawsuits in Georgia, Illinois, Florida and California challenging their unequal and defective voting systems and technology. In all four cases, the ACLU targets the discrepancies created by the use of punch-card systems in some areas and better systems in others. Congress should address the problem this year, Anders said, by passing legislation that meets the three principal goals of election reform: uniformity, accuracy and accessibility.
In Search Of Southern Research Comfort
Southern leaders this week said a newly formed partnership designed to boost the region's research capacity is forging ahead to target needed R&D funding areas. The task force was formed partly in response to recent studies showing the South is lagging behind much of the country in research and development funding, technology infrastructure, educational attainment and the number of patents issued.
The Southern Governors' Association (SGA), Southeastern Universities Research Association and the Southern Growth Policies Board formed the task force in an effort to tap more research funds for information technology, coastal research and basic scientific research. A final report is due by the time the SGA holds its annual meeting in Lexington, Ky., on Sept. 9-11.
Arizona Techies Mourn Lost Investment Opportunity
Forty states offer some kind of government incentives to seed venture capital funding but not Arizona.
The Arizona Republic reports that legislation to expand the state's venture capital stock was at the heart of the recommendations by the Arizona Partnership for the New Economy, the yearlong quest to establish a state economic development strategy, but the measure has died because of a potential state revenue shortfall and thanks to legislators who saw the effort as corporate welfare. Officials also fought over the shape the bill should take.
"We have no way to invest in our early-stage companies here," said Ed Denison, president of the Arizona Software and Internet Association. "Venture capital is by far the biggest shortage we have to grow the tech industry in Arizona."
Tech People On The Move
The State Science and Technology Institute is tracking some movers and shakers in state high-tech policy. It reports that Joe Alviana has resigned as executive director of the Massachusetts Technology Collaborative to take a position in the private sector. The group's executive vice president, Philip Holahan, is serving as interim executive director.
In a neighboring state, the Vermont Economic Progress Council has named Fred Kenney as executive director to the nine-member, governor-appointed panel to provide long-term economic policy planning. And in Connecticut, Laura Kent, who has served as the first president of the 400-member Connecticut Technology Council for seven years, is resigning her post at the end of June. She will serve as a consultant throughout the year.
Finally Pennsylvania Republican Gov. Tom Ridge has promoted Tim McNulty to the new position of deputy chief of staff for technology initiatives.
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