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L.A. Cell Phone Tax Is Illegal, State Court Says
by Michael Martinez
The city of Los Angeles has been levying an illegal tax on cellular telephone customers for the past four years, according to a state appellate court.
The 2nd District of the California Court of Appeal found this week that a cell phone tax increase implemented by the city in 2003 violated a state law requiring that such hikes be approved by voters.
The court's ruling could end up costing the city more than $165 million that Mayor Antonio Villaraigosa has already incorporated into his budget proposal for the upcoming fiscal year.
The city was sued by a group of phone carriers that included AT&T and Verizon after the city imposed the tax. The court sided with the plaintiff's argument that the city's "unilateral decision to levy the cell tax on all airtime" violated voters' rights to approve taxes. State law limits the methods local governments can use to exact revenue from taxpayers without their consent.
"The voters of California stand in the city's path," the court said. "They demanded the right to approve increased local taxes."
Councilwoman Wendy Gruel told AP earlier this week that the city is considering filing a challenge to the ruling. But she said the city would first have to determine whether it was in its best interest to do so.
City Administrative Officer Karen Sisson told The Los Angeles Daily News that the ruling would deprive the city of short-term revenue. She said the city is still examining how it would be affected by allowing the decision to stand.
In a separate case this week, the same court dismissed a lawsuit filed by a Hollywood producer who accused a Web site of failing to give him proper credit for the work he claims to have done on a popular film.
The court tossed a suit by producer David Kronmeyer alleging that imdb.com failed to attribute him in an entry for the film "My Big Fat Greek Wedding." The site contains information on more than 400,000 films and television shows, as well as data on actors and other industry professionals.
Kronmeyer tried to force imdb.com to include his name in the entry for the film, even though it did not appear in any of the on-screen credits, by providing a contract documenting his involvement with the production company. A lower court rejected his suit, claiming that imdb.com was a public forum shielded by a state law protecting free speech from lawsuits that are likely to fail.
The appellate court upheld the ruling, which ordered Kronmeyer to pay the Web site more than $6,000 in attorney's fees. The three-judge panel said he failed to provide any evidence establishing his right to declaratory relief.
Washington Top Cop's E-Mail List Used By Scam
Washington state's top law enforcer this week issued an alert to consumers that an e-mail listserv used by his office was hijacked by an Internet scam.
Washington State Attorney General Rob McKenna announced that his office's listserv was being used as part of a "phishing" scam to bait consumers into surrendering information about their bank accounts. The messages directed recipients to a phony site designed to look like the one hosted by Bank of America.
"These e-mails did not originate from the attorney general's office or a bank," the alert said. "The perpetrators of this scam aim to prey on unsuspecting members who follow the link and then enter their account user name and password. They could become victims of identity theft and fraud."
McKenna advised consumers who responded to the e-mails to contact their banks immediately and told those who have yet to open the messages to delete them. He also advised all consumers to carefully check their credit card and bank statements for unauthorized charges.
According to the advisory, McKenna's office has fixed the security gaps in its listserv so that no further e-mails will be sent.
Spokeswoman Kristin Alexander told AP that it was "pretty gutsy" for scam artists to try to abuse a list used by the state attorney general's office.
Civil Libertarians, Rhode Island Police At Odds Over Legislation
Civil libertarians in Rhode Island are trying to derail legislation that would allow law enforcers to seek the telephone and Internet records of suspects without obtaining warrants.
Legislation has been introduced in both chambers of the state's legislature that would authorize the use of administrative subpoenas to seek such information without court approval. The Rhode Island State Police is backing the bills. Similar proposals died during last year's legislative session.
Steven Brown, the executive director of the Rhode Island arm of the American Civil Liberties Union, told The Providence Journal this week that the bills would effectively lead to a "wholesale invasion of Rhode Islanders' privacy." Police claim streamlined access to the information would help them move faster in Internet-related investigations.
A spokesman for Gov. Donald Carcieri told the newspaper that Carcieri would not authorize the measure if it does not protect the privacy of state residents.
Pennsylvania Puts Inspection Records Of Dog Kennels Online
Pennsylvania Gov. Ed Rendell on Monday announced the completion of a new online database containing inspection records for thousands of licensed dog kennels.
The registry, which was complied by the state's Agriculture Department, includes data on more than 2,600 kennels. In a statement, Rendell said the database will help pet owners make better and more informed choices.
"This new access to kennel inspection records will help consumers know the conditions of kennels -- where they might purchase a dog or board their dog while they travel -- so they can make better decisions about the welfare of their pets," Rendell said.
Inspectors will be able to upload inspection records to the database with wireless devices, allowing them to do more of their work remotely. Agriculture Secretary Dennis Wolf said the entire process will become more efficient.
"We're bringing today's technology to dog kennel inspections and record keeping," he said. "We have now fully implemented this technology and trained our dog wardens to maximize its potential.
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