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California 'Tech Tax' Prompts Veto Request
by Maureen Sirhal
California state lawmakers last week approved new fees on electronics equipment for recycling purposes, prompting industry groups to dub the move a hidden "tech tax."
The California Assembly passed two bills that create new mandates on recycling electronics equipment, such as computer monitors and televisions. The first bill, S.B. 1523, would place a $30 recycling fee on any products containing cathode ray tubes. Local governments then would use the fee to cover the costs of recycling the equipment.
The other bill, S.B. 1619, would create a labeling mechanism for the equipment, mandating that products sold to California residents be marked with warnings indicating that the contents are toxic and must be disposed of properly.
"Imposing an advanced recycling fee or 'tech tax' on cathode ray tube products such as TVs and computers in California is a mistake that will hurt consumers and California businesses," said Heather Bowman, the director of environmental affairs and deputy general counsel of the Electronic Industries Alliance (EIA).
"These bills were rushed through the legislature in the final hours of the session, and several substantive amendments were never reviewed in committee. It passed on its fourth roll-call vote by only one vote," indicating that nearly half of the members wanted more debate, she said.
EIA is calling on Gov. Gray Davis to veto the measures, arguing that his rejection of the ideas would give "manufacturers time to come up with an improved solution within the same timeframe proposed by this year's misguided legislation."
Current law bans landfill disposal of equipment that excretes certain hazardous materials contained in cathode ray products. Localities have been grappling with how to address the issue of recycling products that no longer can be buried in landfills.
But opponents of the "e-cycling" legislation say the costs would be prohibitive and merely would decrease residents' likelihood of purchasing equipment. Opponents also are concerned that the bills would drive consumers to purchase equipment from other states or over the Internet.
Davis, meanwhile, signed a bill, S.B. 1872, that requires Internet, phone and mail-order businesses to speed the process for refunds on returned goods.
In other California news, the Information Technology Association of America (ITAA) last week asked Davis to approve a task force's recommendations aimed at bolstering accountability in public contracts.
Prompted by outrage over California's no-bid $95 million contract with the Oracle software firm, Davis appointed a three-member task force to study the state's procurement laws. The suggestions call for more regulatory scrutiny for procurement contacts and for measures requiring multiple bidders on contracts worth more than $100,000. The task force also requested training to certify state employees who negotiate the contracts.
In a letter to Davis endorsing the guidelines, ITAA President Harris Miller said, "We remain concerned that some state officials are using the recent procurement controversy as an excuse to delay the awarding and/or implementation of information systems that are critical to continued delivery of important government services to California residents. We urge you to use the lessons learned in the recent past to build a better future for state agencies and their constituents."
California Financial Privacy Bill Defeated
For the second year in a row, the California legislature defeated a measure that would have created new privacy restrictions for divulging the financial information of state residents and businesses. The Assembly defeated the privacy bill, S.B. 773, on a 34-36 vote.
The measure would have required financial services firms to obtain permission before sharing a customer's information with third parties. During the last day of debate, lawmakers amended the measure to let companies share information with affiliates without a customer's permission. Consumer groups who backed the legislation argued that the amendment gutted the bill.
While pleased by defeat of the bill, industry groups believe it will be re-introduced when the legislature returns. "The effort to restrict information sharing is not over," said Bill Gausewitz, the American Insurance Association's assistant vice president for the Western region." The financial services industry will have to wrangle with this issue again in 2003."
Photo Database Sparks Privacy Complaints
In other privacy news, the National Consumer Coalition's privacy group tagged the city of Wilmington, Del., as its latest villain. According to news reports, the city's police department collects photos, names and addresses of individuals who violate loitering laws.
Wilmington Police Chief Michael Szczerba told the Delaware News Journal that data would be compiled in a database and used to identify potential suspects in investigations of future crimes. Although Szczerba said he has not received any complaints about the police's photo-collecting methods, city officials are embroiled in a public debate over the practice.
Wilmington Mayor James Baker is defending the program. "I don't care what anyone but a court of law thinks," he told the News Journal. "Until a court says otherwise, if I say it's constitutional, it's constitutional."
Incubator Wins Grant To Hatch Tech Firms
The Commerce Department awarded $6.4 million to the technology incubator Advancing California's Emerging Technologies (ACET) to construct a new laboratory, office, and research and development building.
Expected to open in 2004 in Alameda, the facility will help nearly 40 startup companies and provide a home for international firms looking to partner with American companies. State officials called the award "an economic shot in the arm for the Bay area" because the incubator will seek to boost the sagging high-tech sector.
Since 1998, ACET has helped solidify seven companies that have created between 900 and 1,000 jobs, and the firm has raised about $150 million in venture capital. The new facilities are expected to help ACET graduate between 12 and 15 companies a year, yielding about 6,000 new jobs and attracting nearly $1 billion in investment to the region.
In other research news, officials with Internet2 this week announced that the high-speed data network now has 200 university members in its fold. Created in 1996 by 34 colleges and universities, the Internet2 project seeks to boost the deployment of advanced network applications for research and higher education. The National Science Foundation and other federal agencies also provide support and membership to the project.
Experts To Share Strategies Against Cyber Porn
South Dakota Gov. William Janklow is hosting a conference next week designed for sharing ideas on how to fight online child pornography. Cyber-crime experts will assemble at the annual State of the States Computer Crimes Consortium in Sioux Falls from Monday thru Wednesday.
"The problem of Internet child pornography is huge, so we invited the best in the computer-crimes investigation business to meet in South Dakota so we can learn from them and better protect our children," Janklow said in a statement. "In less than one year, our Internet crimes unit has opened more than 150 investigations, searched 91 computers, and 18 arrests have been made to date."
Bill Mickelson, commander of the state's Internet Crimes Against Children enforcement unit, will moderate the forum. About 500 law enforcement officials, clergy, school staff and parents are expected to attend the conference.
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