LA- Louisiana House Appropriations Committee OKs fee measure to fight Internet crime

Notice the absence of any support that Internet crimes are really increasing; heresay legislated.

5-29-2009 Louisiana:

Internet users in Louisiana would be subject to a new tax under a bill moving through the Legislature that aims to beef up the attorney general's ability to investigate online sex predators.

But House Bill 569 faces tough climb thanks to questions about its legality and opposition from Gov. Bobby Jindal, who has made a signature issue of cracking down on sex offenders but promised a veto Friday because of the bill's cost to taxpayers.

The bill by Rep. Bodi White, R-Central, won unanimous approval Thursday from the House Appropriations Committee and faces a likely hearing on the floor next week.

Sponsored by Attorney General Buddy Caldwell, the legislation would collect an estimated $2.4 million a year through a 15-cent fee tacked onto monthly bills from Internet service providers. The money would go into an Internet Crimes Investigations Fund, where it would be used by the attorney general's office to investigate and prosecute a range of online crimes, including financial fraud and child pornography.

White, testifying on the bill in committee, told lawmakers that online sex crimes are a growing problem in Louisiana at a time when the department's ability to investigate them is declining due to budget cuts.

"What it tells you is they don't have nearly enough people to investigate or look at this," White said.

The bill won enthusiastic support from lawmakers who normally oppose tax increases and describe themselves as fiscal conservatives.

"Let's make Louisiana the example for this country," said Rep. Noble Ellington, D-Winnsboro. "As our governor has said, if you're going to do Internet pornography, child porn, whatever it is, you're going to go somewhere else to do it."

Rep. Joe Harrison Jr., R-Napoleonville, put it more plainly: "I think this is a clear case of good versus evil."

For Jindal, however, the bill sets up a clash between two competing political goals: Making life tougher for sex offenders, and opposing any and all tax increases. In this case, anti-tax sentiment won.

"While we absolutely support cracking down on sex offenders that prey on our children, we see this bill as a tax increase and the governor would veto it if it comes to his desk," Jindal press secretary Kyle Plotkin said.

Other opponents said the bill conflicts with the federal Internet Tax Freedom Act, which prohibits states from taxing Internet services, and would likely be challenged in court.

"A tax by any other name is still a tax and it's prohibited by federal law," Robert Rieger, a lawyer for Adams and Reese who represents cable companies, told the committee. He said Louisiana would be the first state to charge such a tax.

"The fact that no other state has done this speaks volumes," Rieger said.

But Caldwell said it's not a tax but a fee, and thus permissible under the law. "We would not burden you with something we don't think would survive a legal challenge," he said. ..News Source.. by Jan Moller, The Times-Picayune