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The Keystone To Economic Success
by Maureen Sirhal
Pennsylvania Gov. Edward Rendell last week proposed an economic stimulus measure that aims to bolster the state's sagging technology sector with tax cuts and venture-capital investments. In the second phase of his 2004 budget plan, Rendell called for increasing tax credits for research and development and providing funds to invest in young tech firms.
Venture capital in the Keystone State has declined over the last few years, so the proposed Pennsylvania Opportunity Fund would use $250 million in state funds to match private-sector investments. With an additional $500 million for investment, said Brian Kennedy, director of government relations at the Pittsburgh Technology Council, "we'd be restored back to when the tech sector was booming."
"This investment will provide the much-needed capital to fuel Pennsylvania's economic engine," Rendell said in a speech to the legislature. "My goal is to target investment across the state -- investments that create jobs for Pennsylvanians and help to generate economic momentum in local communities."
Rendell also proposed expanding the state's R&D tax program by increasing the limit on R&D credits. The budget would raise the cost of the program from $15 million to $60 million. Firms that make R&D investments could reduce their tax bills by up to 75 percent. Kennedy said the proposal would foster R&D at small companies by allowing them to sell their unused tax credits.
Rendell also has recommended the creation of regions dubbed Keystone Innovation Zones (KIZs) to try to leverage the resources of universities, private firms, venture capitalists and foundations.
"In order to fundamentally change the course upon which Pennsylvania is charting our future," Rendell said in a speech this week, "we must tap into the new economy at unprecedented levels, creating new, high-quality jobs and finally giving our young people a reason to stay and invent Pennsylvania's future."
But while Rendell is focusing on boosting investments in private industry, he has proposed cutbacks in the state's own information technology spending. His budget would reduce funds for tech projects by about $55 million.
As reported in the Central Pennsylvania Business Journal, Economic Development Secretary Dennis Yablonsky told the Technology Council of Central Pennsylvania last month that the proposed cutbacks are not necessarily bad news for the tech sector. Yablonsky said Rendell wants state agencies to be more efficient.
The Anti-Spam Bandwagon Keeps Moving
An Arizona measure designed to curb junk e-mail, or spam, moved one step closer to becoming law when the state House this week passed the legislation.
The bill, S.B. 1280, would impose anti-spam rules common in other states. It would prohibit misleading information on the senders and subjects of unsolicited commercial e-mails and require advertisers to let consumers opt out of receiving future messages. The measure also would require that the messages be labeled as advertisements, using the abbreviation "ADV."
Individuals who violate the measure could be sued for $10 per message, up to $25,000. The Arizona Republic recently estimated that spam has cost local governments in the state $186,000. The state Senate must pass the bill before it would go to Gov. Janet Napolitano.
Meanwhile, the National Association of Independent Insurers (NAII) is raising concern about an anti-spam measure in New York. The group warns that the bill, S.B. 1680, would give Internet service providers (ISPs) broad authority to block e-mails without notifying senders and provide immunity to ISPs for their actions.
NAII is concerned that such language would allow ISPs to block bulk e-mail messages that may be legal. "NAII's concern is that giving this kind of seizure authority to private companies and then granting them immunity is problematic," Gerald Zimmerman, senior counsel for the NAII, said in a press statement. "Although S.B. 1680 purports to stop spam, its language could affect insurers' ability to send their customers important e-mail."
He suggested that one possible remedy would be to add a provision in the bill that would allow companies to certify that their e-mails are sent only to existing customers.
The state Senate Consumer Protection Committee will hold a hearing on the measure this week.
Texas To Test E-Filing System For Courts
The consulting firm BearingPoint and software maker Microsoft said this week that two Texas counties are testing a system that the firms are offering for e-filing of documents in state courts.
The Web-based eFiling for Courts service will be tested at TexasOnline.com and run on Microsoft's .Net platform, without requiring state courts to create their own systems. Lawyers will be able to electronically send documents to the courts and pay court fees.
"The TexasOnline Authority, the governing body of Texas' state portal, has worked in tandem with BearingPoint and Microsoft to develop a convenient, Web-based filing capability for the legal community in the state of Texas," state Chief Information Officer Carolyn Purcell said in a statement. "Use of the service by our courts can save attorneys time, reduce total filing costs and assist courts in becoming more efficient."
Microsoft and BearingPoint aim to market the system to all state and local governments.
Rep. Davis Dubbed 'Technology Champion'
The National Association of State Chief Information Officers (NASCIO) this week honored Virginia Republican Tom Davis for his work advancing e-government and technology policy.
NASCIO gave its first National Technology Champion award to Davis, chairman of the House Government Reform Committee, for his work on the e-government law enacted last year and other measures to boost federal information technology measures.
Davis has sponsored and helped pass legislation to bolster the IT skills of federal workers by allowing them to take leave from government positions to work in private industry and vice versa. He also helped boost federal cyber-security standards. NASCIO plans to present the award annually to an individual who contributes significantly to "public information technology policy."
Californian Groups To Examine Telecom Proposal
Technology firms and lobbying organizations are joining a California free-market think tank in hosting a conference next week to explore the implications of proposed rules that the state's Public Utilities Commission is considering for wireless phone service.
The California Chamber of Commerce, Pacific Research Institute, Qualcomm, San Jose-Silicon Valley Chamber of Commerce, TechNet and Verizon Wireless will convene the meeting on Tuesday to discuss the pro and cons of "telecommunications bill of rights."
The rules, which seek to provide consumers with clarity on wireless service agreements, could become a model for dozens of other states. Critics said the rules could create a morass of regulations that could hinder the state's economy.
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