Legislative and Judicial Update

Anti-spam law upheld in Calif. court

The California Supreme Court has upheld the constitutionality of its state anti-spam law after a long-running legal dispute, saying that the law does not violate U.S. interstate commerce laws. In 1999, California resident Mark Ferguson sued interactive services companies FriendFinder and Conru Interactive, alleging that they had sent him and others unsolicited e-mail advertisements that were deceptive, misleading and in violation of state law.

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The Job Creation and Worker Assistance Act.

Although there has been a great deal of attention, and deservedly so, to the Economic Stimulus package (H.R. 3090) that President Bush signed into law last week, the Security Industry Association urges our industry to continue its support for H.R. 2970, the Securing America Expensing Act, that would provide even greater benefits to our industry.

SIA, in coordination with 2970 sponsor Rep. Jerry Weller (R-IL), lobbied for the inclusion of a 'bonus depreciation' clause that would not be industry-specific but rather would apply to all qualifying property used in a trade or business. SIA Executive Director Richard Chace stood aside leaders from the Telecommunications and IT industries as Senators and Representatives made their cases for bonus depreciation.

While the stimulus package does provide for accelerated depreciation on the purchase of security equipment, H.R. 2970 would provide for an important security-specific addition to the existing tax code that would not expire as H.R. 3090 sets forth.

H.R. 2970 would permit business to expense the full allowable amount of security equipment purchased under Section 179 of the Internal Revenue Code of 1986. The current ceiling for Section 179 expensing is $24,000, although it is scheduled to increase incrementally in the future.

SIA is continuing to gather Congressional support for H.R. 2970, which Ways & Means member Mr. Weller has identified as one of his legislative priorities for 2002. In SIA's meeting with Representatives on Capital Hill, widespread, bi-partisan support has been found.

For more information, please contact Neil Ivey at the Security Industry Association.

Respectfully submitted by
Greg Pera
SFBA Legislative Liaison

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