Virginia Voter Registration Website Crashes On Last Day To Register Before Election

Virginia Voter Registration Website Crashes On Last Day To Register Before Election

Tyler Durden

Tue, 10/13/2020 – 12:20

In the latest localized malfunction of America’s elections infrastructure, the entire statewide voter registration infrastructure of the state of Virginia has just gone offline on the last day to register to vote before the election.

And in a tweet, the Virginia Information Technology Agency claimed that a cable near Route 10 in Chester, Virginia had been mysteriously cut, causing the outage on the final day that voters can register in the state.

The Virginia Department of Elections posted a statement on the registration portal explaining that the system, known as VERIS, was down, and the timeline for its return was unclear: “Due to a network outage, the Citizen Portal is temporarily unavailable. We are working with our network providers to restore service as quickly as possible.”

Technicians are reportedly on-site working to fix the outage.

It’s unclear when the outage is expected to be repaired.

Anybody unable to register before the deadline won’t be allowed to vote; there are typically no exceptions to this rule.

The outage comes a little over a week after a similar incident left Pennsylvania’s voter registration system down for roughly two days. That issue was traced to a data center managed by Unisys on behalf of the commonwealth.

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Why Are Political Journalists More Scared of Revealing Their Votes Than Baseball Writers?

NYT

Since I have been trying without success for 16 years now to appeal to my fellow journalists’ avowed principles while beseeching them to follow Reason‘s (and Slate‘s) lead in disclosing which presidential candidate staffers plan to vote for, let me this year try a more mercenary tack: Y’all are leaving some choice traffic on the table.

As of Wednesday morning, our quadrennial survey of staff voting intentions was this week’s most popular item on the website. Having journalists publicly live up to their commitment to transparency is apparently a man-bites-dog story.

What’s strange about this stubborn transparency-for-thee stance, aside from the fact that many publications are missing those sweet clicks, is that reporters not on the politics beat have long since come around to the virtues of self-disclosure. Sixteen years ago, very few members of the Baseball Writers Association of America (BBWAA) revealed ahead of time, let alone publicly defended, their annual votes for the sport’s Hall of Fame. By 2014, the percentage of disclosers inched above 50. Last year, it was 84.1.

Along the way, a funny thing happened: Baseball writers started taking their vote more seriously. In fact, the BBWAA in 2017 changed the rules to make all future votes public. “We want transparency from the people we cover,” then-BBWAA President Derrick Goold told ESPN at the time. “And now we have a chance to do that ourselves.”

Huh.

In fact, political voting preferences are inherently less objective and interesting than arguing over whether Curt Schilling belongs in the Hall (I would vote yeah, FWIW, though not for the bloody sock‘s crony capitalism). But the resident of 1600 Pennsylvania Ave. affects lives more than the inductees to Cooperstown, and knowing how political journalists vote arguably gives consumers more usable media-literacy information than whether some sportswag digs Jeff Kent. Wouldn’t it be interesting and potentially helpful to know how many news organizations had 2016 voter preferences similar to Slate‘s 59-1-1 count for Hillary Clinton, Jill Stein, and Evan McMullin?

But we have a cherished right to a secret ballot, objectors shoot back, and quite right: You can easily respond “none of your business” in your media organization’s public survey. But people might use our voting preference against us, they cry. You mean like, weaponizing a single out-of-context data point in an effort to besmirch a perceived malefactor? Toughen up, Francis.

Look, we know newspapers are going to overwhelmingly endorse Joe Biden. When political donations originating from employees of media organizations are eventually tallied up, we know they will tilt massively Democrat. Most people who are cognizant of the profession’s recent turn toward “moral clarity” over unattainable objectivity understand that that means those with non-lefty politics will be subjected to harsher adjectives.

And yet the very same media commentators who have long decried the so-called “view from nowhere” are absent in this battle for more journalistic transparency.

“Journalists can also be clear about where we’re coming from, and where we’re not,” New York Times media columnist Ben Smith wrote last month. “But journalism also has its own weird ideology that doesn’t match up with a party or movement. That you, the public, should know, rather than not know. That sunlight is the best disinfectant. That secrets are bad. That power deserves challenge, including the power of figures most of our respective audiences admire.”

All right, then, Big Media Ben. If secrets are bad, power deserves challenge, and sunlight is the best disinfectant, then let’s see you and your institution test out that whole “weird ideology that doesn’t match up with a party or movement” claim by putting the Gray Lady‘s money where its mouth is: Show us your votes!

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Long-Haul Freight Boom Leads To Pre-Peak Capacity Crunch

Long-Haul Freight Boom Leads To Pre-Peak Capacity Crunch

Tyler Durden

Tue, 10/13/2020 – 12:00

By Zach Strickland of FreightWaves.com

The average length of haul for requested load tenders has increased 6% or roughly 20 miles since the same period last year. This may not seem like a big deal at first, but with accepted volumes being over 20% higher than this time last year, those miles have a multiplier on them — putting a deeper strain on capacity than the tender volumes alone suggest.

Chart of the Week:  Outbound Average Length of Haul, Outbound Tender Volume Index

The average length of haul for loads tendered in 2019 was 591 miles through September. Year-to-date in 2020, loads have averaged over 600 miles. Making the 2020 number a little deceiving is the fact it includes the pandemic-inspired shipping spree that saw a boom of short-haul loads in March when the average load moved 568 miles. If we remove March, the average mileage moves closer to 607. So why has the length of haul jumped so much this year? 

Freight originating in Southern California has accounted for nearly 8% of the total outbound freight volume in the U.S. over the past two months — currently the first- and fourth-largest outbound markets in the country. The average length of haul for freight leaving the Los Angeles and Ontario, California, markets has been 1,059 and 879 miles, respectively, according to FreightWaves tender data. Accepted volumes have grown over 9% year-over-year in August and September in these markets. So why the growth in this region?

Shippers have been pulling record amounts of freight into the ports of Los Angeles (+18% YoY in August) and Long Beach (+13% YoY in August) over the past few months. A good portion of the imported freight, which ships in international 20-foot and 40-foot containers, gets placed directly onto the rails. 

The unexpected surging container volumes have led to the implementation of peak season surcharges for any noncontracted freight that are extremely cost-prohibitive, pushing a lot of the excess volume to trucking. This move exaggerates the already tight truckload market by keeping a lid on overall domestic surface capacity.

The majority of the rail freight moves more than 700 miles, as it becomes inefficient for shorter runs due to the fact most containers need to be transported to their final destination by a truck or drayage provider off the railcar. 

In addition to the Southern California freight, other markets like Harrisburg, Pennsylvania, have also seen a notable increase in longer-mileage freight requests. Harrisburg — the third-largest outbound market in the U.S. — saw its average length of haul increase from 434 miles in June and July to 469 miles in August and September.    

Lakeland, Florida, loads’ average mileage has jumped 81 miles per shipment over the past year as well. Longer-haul freight tends to correlate with the need for replenishment of inventories as they dwindle. They are also connected to preparation for seasonal demand like the retail peak coming in the next two months. It would appear we are seeing a combination of both, creating a double-up wave effect in the market.

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The USDA Should Let People Plant Blight-Resistant American Chestnut Trees

AmericanChestnutDreamstime

The American chestnut was once the dominant hardwood species in Appalachian mountain forests, comprising as much as 40 percent of the overstory trees in the climax forests of the Eastern United States. Foresters used to quip that an enterprising squirrel could travel from Maine to Georgia on the interlocking branches of chestnut trees. The fast-growing American chestnuts often reached five feet in diameter and 60–100 feet in height.

Then came the Asian chestnut blight in the early 20th century that killed over 3 billion American chestnuts basically causing the tree to become functionally extinct throughout its natural range. The blight fungus was probably brought to America on imported nursery stock of Chinese chestnuts. American trees had simply never evolved resistance to this parasite. The American chestnut is now almost entirely gone from the landscape except for a few stumps in the woods that still produce shoots that the blight kills before they reach 15 feet in height.

For more than 30 years, the American Chestnut Foundation (ACF) has been engaged in a privately financed program in which its geneticists have been crossbreeding American chestnuts with blight-resistant Chinese chestnuts. The goal is to produce an American chestnut tree that retains essentially only the blight resistance genes from the Chinese chestnut tree.

More recently, the ACF has been collaborating with researchers at the State University of New York’s College of Environmental Science and Forestry (ESF) to use modern biotechnology to endow American chestnut trees with blight resistance. To that end, the researchers have added a gene from wheat that produces the enzyme oxalate oxidase that breaks down the oxalic acid the fungus uses to attack chestnut trees. It works; the added gene does indeed protect American chestnuts from the blight.

Now the ACF and ESF researchers are officially petitioning the U.S. Department of Agriculture (USDA) to give their blight-resistant American chestnut “nonregulated status” which would allow the blight-tolerant bioengineered trees to be planted without restriction as part of restoration programs.

However, a coterie of anti-biotech activists organized as The Campaign to STOP GE Trees are opposing the petition to the USDA. To justify their opposition to blight-resistant genetically-engineered American chestnuts, the campaigners cite the precautionary principle. But the precautionary principle measures only risks and not benefits of new technologies and amounts to arguing that we should “never do anything for the first time,” as I’ve previously argued. In this case, the activists assert that since researchers do not know absolutely all of the possible consequences of planting blight-resistant American chestnut trees, then none should be planted. Perplexingly, the activists ignore the glaring fact that we do know what the deleterious ecological and economic consequences of having no blight-resistant chestnut trees have been.

In fact, extensive research by the ACF and ESF finds no significant ecological effects from inserting the oxalate oxidase gene, apart from enhancing blight tolerance. The researchers point out that their blight-resistant “chestnuts retain 100 percent of their natural complement of genes; no native genes or alleles have been removed or replaced, and expression of nearby genes is not affected.” In other words, except for the blight-resistant trait, their trees are, in all relevant respects, genetically identical to natural American chestnuts.

In addition, the researchers point out there are no negative human health issues since the oxalate oxidase gene is naturally present in many food crops and is non-allergenic. After all, people have been eating that enzyme in bread for millennia.

In their USDA petition, the researchers observe that if their blight-resistant American chestnuts are granted nonregulated status by the USDA, they will be made available for not-for-profit distribution to the public, and to groups including private, indigenous, state, and federal restoration programs. If the USDA regulators do grant their trees nonregulated status, they can then “be planted like wild-type or traditionally bred chestnuts to accomplish meaningful conservation and restoration of the American chestnut.” Perhaps squirrels could once again travel from Maine to Georgia through the branches of restored chestnut forests by the end of this century.

Disclosures: I have occasionally made small contributions to the ACF in the past and will do so again soon. I have also made a public comment at the USDA in favor of granting nonregulated status to the blight-resistant chestnut trees. 

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The USDA Should Let People Plant Blight-Resistant American Chestnut Trees

AmericanChestnutDreamstime

The American chestnut was once the dominant hardwood species in Appalachian mountain forests, comprising as much as 40 percent of the overstory trees in the climax forests of the Eastern United States. Foresters used to quip that an enterprising squirrel could travel from Maine to Georgia on the interlocking branches of chestnut trees. The fast-growing American chestnuts often reached five feet in diameter and 60–100 feet in height.

Then came the Asian chestnut blight in the early 20th century that killed over 3 billion American chestnuts basically causing the tree to become functionally extinct throughout its natural range. The blight fungus was probably brought to America on imported nursery stock of Chinese chestnuts. American trees had simply never evolved resistance to this parasite. The American chestnut is now almost entirely gone from the landscape except for a few stumps in the woods that still produce shoots that the blight kills before they reach 15 feet in height.

For more than 30 years, the American Chestnut Foundation (ACF) has been engaged in a privately financed program in which its geneticists have been crossbreeding American chestnuts with blight-resistant Chinese chestnuts. The goal is to produce an American chestnut tree that retains essentially only the blight resistance genes from the Chinese chestnut tree.

More recently, the ACF has been collaborating with researchers at the State University of New York’s College of Environmental Science and Forestry (ESF) to use modern biotechnology to endow American chestnut trees with blight resistance. To that end, the researchers have added a gene from wheat that produces the enzyme oxalate oxidase that breaks down the oxalic acid the fungus uses to attack chestnut trees. It works; the added gene does indeed protect American chestnuts from the blight.

Now the ACF and ESF researchers are officially petitioning the U.S. Department of Agriculture (USDA) to give their blight-resistant American chestnut “nonregulated status” which would allow the blight-tolerant bioengineered trees to be planted without restriction as part of restoration programs.

However, a coterie of anti-biotech activists organized as The Campaign to STOP GE Trees are opposing the petition to the USDA. To justify their opposition to blight-resistant genetically-engineered American chestnuts, the campaigners cite the precautionary principle. But the precautionary principle measures only risks and not benefits of new technologies and amounts to arguing that we should “never do anything for the first time,” as I’ve previously argued. In this case, the activists assert that since researchers do not know absolutely all of the possible consequences of planting blight-resistant American chestnut trees, then none should be planted. Perplexingly, the activists ignore the glaring fact that we do know what the deleterious ecological and economic consequences of having no blight-resistant chestnut trees have been.

In fact, extensive research by the ACF and ESF finds no significant ecological effects from inserting the oxalate oxidase gene, apart from enhancing blight tolerance. The researchers point out that their blight-resistant “chestnuts retain 100 percent of their natural complement of genes; no native genes or alleles have been removed or replaced, and expression of nearby genes is not affected.” In other words, except for the blight-resistant trait, their trees are, in all relevant respects, genetically identical to natural American chestnuts.

In addition, the researchers point out there are no negative human health issues since the oxalate oxidase gene is naturally present in many food crops and is non-allergenic. After all, people have been eating that enzyme in bread for millennia.

In their USDA petition, the researchers observe that if their blight-resistant American chestnuts are granted nonregulated status by the USDA, they will be made available for not-for-profit distribution to the public, and to groups including private, indigenous, state, and federal restoration programs. If the USDA regulators do grant their trees nonregulated status, they can then “be planted like wild-type or traditionally bred chestnuts to accomplish meaningful conservation and restoration of the American chestnut.” Perhaps squirrels could once again travel from Maine to Georgia through the branches of restored chestnut forests by the end of this century.

Disclosures: I have occasionally made small contributions to the ACF in the past and will do so again soon. I have also made a public comment at the USDA in favor of granting nonregulated status to the blight-resistant chestnut trees. 

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Larry Fink: Market Could Go Higher As “Fear Of The Future” Draws Flood Of Retail Money

Larry Fink: Market Could Go Higher As “Fear Of The Future” Draws Flood Of Retail Money

Tyler Durden

Tue, 10/13/2020 – 11:40

BlackRock reported on Tusday that its total assets under management swelled to $7.8 trillion during Q3 even as Robinhood draws so many new millennial customers that it has prompted mutual fund dinosaurs to fret about an exodus of client money.

Of course, BlackRock’s specialty is ETFs. Unlike mutual funds, ETFs trade intraday, giving millennial traders that non-stop rush of trading action that helps to feed their delusions of day-trading glory. BlackRock does that, and so much more the ‘systemic importance of the asset manager/shadow bank was highlighted earleir this year by the Fed’s decision to tap BR to execute purchases of corporate bond ETFs as part of the CBs’ expanded stimulus program.

Largely thanks to his firm’s success, BlackRock founder and CEO Larry Fink has morphed into a CNBC-lebrity, often joining the network’s jornalists to comment on the financial trends of the day, or offer his personal view on where markets are headed.

But on Tuesday, with BlackRock’s latest earnings haul fresh in the headlines, Fink was asked about how retail traders are transforming the asset-management industry. Ignoring the deep economic scarring endured by many, Fink replied that the outbreak is forcing people to rethink how they save and invest.

“Covid and the fear of the future has created probably a higher savings rate — we have people focusing on the long term a little more,” Fink said during the post-earnings call with reporters and analysts. “It’s leading to more savings and more investing for the long term.”

As discount brokerages like Robinhood signed up hundreds of thousands of new customers, BlackRock reported flows into all of its business lines. Retail clients added a net $19.6 billion to BlackRock funds in the period. Buyers of BR’s iShares exchange-traded funds, many of them retail investors but also institutions, took in a net $41.3 billion.

In an interview on CNBC that followed the call, Fink expounded on that point, perhaps without realizing that “FOMO” – or “fear of missing out” – has been an important factor driving markets for a long time.

“The pandemic actually has created that fear of the future, and the response is a higher savings rate in America, and a higher investment rate for the long-term,” Fink said Tuesday during the CNBC interview.

The subtext is clear: to any retail traders watching, instead of throwing your money away on those Nikola calls, maybe think about plunking your tendies into a more staid benchmark-tracking offering from BlackRock at just 3 basis points a year.

According to the latest data, the savings rate in the US has plunged in recent months as we move further and further away from the late summer’s fiscal cliff.

Fink added that this is a global phenomenon, and that retail investors are pouring money into markets in Asia, Europe and elsewhere. In fact, it’s this very trend that has led BlackRock to believe that there’s “even more upside” in the near-term for markets, as more desperate retail investors seek to parlay their meager earnings into more.

“I believe we still have more to go on the upside even in front of probably rising infection rates with Covid-19,” Fink said. “We have a strong conviction that the average investor still is under-invested, and they’re going to have to be putting more and more money to work over the coming months and maybe even years.”

In other words, there’s still some juice to be squeezed from retail traders who, thanks to the advent of payment-for-order-flow no have an outsize impact on market swings.

Fink’s image of the economy was predictably rosy: he confidently suggested that Congress would dole out another stimulus package after the election, and added that Fed stimulus will keep stocks elevated for the time being.

And when it comes to the influx of retail investors, they’re not all going to Robinhood: Fink added that BlackRock has also seen more younger investors putting money to work in its marketplace.

“We are seeing a record amount of retail participation in the marketplace,” Fink said, contending it was more than just novice day traders using online brokerages such as Robinhood. “Across the board, the average investor is putting more and more money to work, which is a good outcome. I do believe that pandemic actually has created that fear of the future and a response is now a higher savings rates in America, a higher investment rate for the long term.”

As far as the long-term implications of the burgeoning federal debt, Fink asserted that investors shouldn’t worry about that right now.

“Monetary policy…creates more income equality because monetary policy lifts financial assets, and it is really mostly the wealthy people who own all the financial assets, and that’s why fiscal stimulus is so important,” Fink said.

“These deficits will matter some time in the future but it is not a problem for this moment,” Fink added. “I do believe the aggressive nature of central bank behavior is basically foretelling us that we should not worry about rising interest rates at this time so let’s focus on rebuilding our economy over the next year or so, and so we have a more broad-based economic growth for everyone.”

This is the same man who just a few months ago acknowledged that the market might be getting a little ahead of itself, and once even expressed some discomfort with the Fed’s debasement of the dollar.

We wonder: What happened?

Source: (CNBC)

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Justice Thomas Writes in Favor of a Narrow Reading of 47 U.S.C. § 230

From his statement today respecting the denial of certiorari this morning in Malwarebytes, Inc. v. Enigma Software Group USA, LLC:

I write to explain why, in an appropriate case, we should consider whether the text of this increasingly important statute [47 U.S.C. §230] aligns with the current state of immunity enjoyed by Internet platforms….

[The statute:] Enacted at the dawn of the dot-com era, §230 contains two subsections that protect computer service providers from some civil and criminal claims. The first is definitional. It states, “No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.” §230(c)(1). This provision ensures that a company (like an e-mail provider) can host and transmit third-party content without subjecting itself to the liability that sometimes attaches to the publisher or speaker of unlawful content.

The second subsection provides direct immunity from some civil liability. It states that no computer service provider “shall be held liable” for (A) good-faith acts to restrict access to, or remove, certain types of objectionable content; or (B) giving consumers tools to filter the same types of content. §230(c)(2). This limited protection enables companies to create community guidelines and remove harmful content without worrying about legal reprisal.

[The publisher/distributor distinction:] Congress enacted this statute against specific background legal principles. See Stewart v. Dutra Constr. Co. (2005) (interpreting a law by looking to the “backdrop against which Congress” acted). Traditionally, laws governing illegal content distinguished between publishers or speakers (like newspapers) and distributors (like newsstands and libraries).

Publishers or speakers were subjected to a higher standard because they exercised editorial control. They could be strictly liable for transmitting illegal content.

But distributors were different. They acted as a mere conduit without exercising editorial control, and they often transmitted far more content than they could be expected to review. Distributors were thus liable only when they knew (or constructively knew) that content was illegal. See, e.g., Stratton Oakmont, Inc. v. Prodigy Services Co., (N.Y. trial ct. 1995); Restatement (Second) of Torts §581 (1976); cf. Smith v. California (1959) (applying a similar principle outside the defamation context).

The year before Congress enacted §230, one court blurred this distinction…. The court determined that [a service provider’s] decision to exercise editorial control over some content “render[ed] it a publisher” even for content it merely distributed. Taken at face value, [in relevant part,] §230(c) alters the Stratton Oakmont rule … [by] indicat[ing] that an Internet provider does not become the publisher of a piece of third-party content—and thus subjected to strict liability—simply  by  hosting  or  distributing  that  content. [But a] dopting the too-common practice of reading extra immunity into statutes where it does not belong, see Baxter v. Bracey (2020) (Thomas, J., dissenting from denial of certiorari [and writing about qualified immunity]), courts have relied on policy and purpose arguments to grant sweeping protection to Internet platforms….

Courts have discarded the longstanding distinction between “publisher” liability and “distributor” liability. Although the text of §230(c)(1) grants immunity only from “publisher” or “speaker” liability, the first appellate court to consider the statute held that it eliminates distributor liability too—that is, §230 confers immunity even when a company distributes content that it knows is illegal. In reaching this conclusion, the court stressed that permitting distributor liability “would defeat the two primary purposes of the statute,” namely, “immuniz[ing] service providers” and encouraging “selfregulation.” And subsequent decisions … have adopted this holding as a categorical rule across all contexts.

To be sure, recognizing some overlap between publishers and distributors is not unheard of. Sources sometimes use language that arguably blurs the distinction between publishers and distributors…. Yet there are good reasons to question this interpretation.

First, Congress expressly imposed distributor liability in the very same Act that included §230. Section 502 of the Communications Decency Act makes it a crime to “knowingly … display” obscene material to children, even if a third party created that content. This section is enforceable by civil remedy. It is odd to hold, as courts have, that Congress implicitly eliminated distributor liability in the very Act in which Congress explicitly imposed it.

Second, Congress enacted §230 just one year after Stratton Oakmont used the terms “publisher” and “distributor,” instead of “primary publisher” and “secondary publisher.” If, as courts suggest, Stratton Oakmont was the legal backdrop on which Congress legislated, one might expect Congress to use the same terms Stratton Oakmont used.

Third, had Congress wanted to eliminate both publisher and distributor liability, it could have simply created a categorical immunity in §230(c)(1): No provider “shall be held liable” for information provided by a third party. After all, it used that exact categorical language in the very next subsection, which governs removal of content. §230(c)(2). Where Congress uses a particular phrase in one subsection and a different phrase in another, we ordinarily presume that the difference is meaningful….

[Internet companies’ selecting and editing decisions:] Courts have also departed from the most natural reading of the text by giving Internet companies immunity for their own content. Section 230(c)(1) protects a company from publisher liability only when content is “provided by another information content provider.” Nowhere does this provision protect a company that is itself the information content provider. And an information content provider is not just the primary author or creator; it is anyone “responsible, in whole or in part, for the creation or development” of the content.

But from the beginning, courts have held that §230(c)(1) protects the “exercise of a publisher’s traditional editorial functions—such as deciding whether to publish, withdraw, postpone or alter content.” Only later did courts wrestle with the language in §230(f)(3) suggesting providers are liable for content they help develop “in part.” To harmonize that text with the interpretation that §230(c)(1) protects “traditional editorial functions,” courts relied on policy arguments to narrowly construe §230(f)(3) to cover only substantial or material edits and additions.

Under this interpretation, a company can solicit thousands of potentially defamatory statements, “selec[t] and edi[t] … for publication” several of those statements, add commentary, and then feature the final product prominently over other submissions—all while enjoying immunity. Jones v. Dirty World Entertainment Recordings LLC (CA6 2014) (interpreting “development” narrowly to “preserv[e] the broad immunity th[at §230] provides for website operators’ exercise of traditional publisher functions”). To say that editing a statement and adding commentary in this context does not “creat[e] or develo[p]” the final product, even in part, is dubious….

[Internet companies’ decisions to remove certain material:] The decisions that broadly interpret §230(c)(1) to protect traditional publisher functions also eviscerated the narrower liability shield Congress included in the statute. Section 230(c)(2)(A) encourages companies to create content guidelines and protects those companies that “in good faith … restrict access to or availability of material that the provider or user considers to be obscene, lewd, lascivious, filthy, excessively violent, harassing, or otherwise objectionable.” Taken together, both provisions in §230(c) most naturally read to protect companies when they unknowingly decline to exercise editorial functions to edit or remove third-party content, §230(c)(1), and when they decide to exercise those editorial functions in good faith, §230(c)(2)(A).

But by construing §230(c)(1) to protect any decision to edit or remove content, courts have curtailed the limits Congress placed on decisions to remove content, see e-ventures Worldwide, LLC v. Google, Inc. (MD Fla. 2017) (rejecting the interpretation that §230(c)(1) protects removal decisions because it would “swallo[w] the more specific immunity in (c)(2)”). With no limits on an Internet company’s discretion to take down material, §230 now apparently protects companies who racially discriminate in removing content.  Sikhs for Justice, Inc. v. Facebook, Inc. (CA9 2017), aff ‘g (ND Cal. 2015) (concluding that “‘any activity that can be boiled down to deciding whether to exclude material that third parties seek to post online is perforce immune'” under §230(c)(1)).

[Internet companies’ decisions about structuring their output and user interface:] Courts also have extended §230 to protect companies from a broad array of traditional product-defect claims. In one case, for example, several victims of human trafficking alleged that an Internet company that allowed users to post classified ads for “Escorts” deliberately structured its website to facilitate illegal human trafficking. Among other things, the company “tailored its posting requirements to make sex trafficking easier,” accepted anonymous payments, failed to verify e-mails, and stripped metadata from photographs to make crimes harder to track. Jane Doe No. 1 v. Backpage.com, LLC (CA1 2016). Bound by precedent creating a “capacious conception of what it means to treat a website operator as the publisher or speaker,” the court held that §230 protected these website design decisions and thus barred these claims.

Consider also a recent decision granting full immunity to a company for recommending content by terrorists.  Force v. Facebook, Inc. (CA2 2019). The court first pressed the policy argument that, to pursue “Congress’s objectives, … the text of Section 230(c)(1) should be construed broadly in favor of immunity.” It then granted immunity, reasoning that recommending content “is an essential result of publishing.” Unconvinced, the dissent noted that, even if all publisher conduct is protected by §230(c)(1), it “strains the English language to say that in targeting and recommending these writings to users … Facebook is acting as ‘the publisher of … information provided by another information content provider.'”

Other examples abound. One court granted immunity on a design-defect claim concerning a dating application that allegedly lacked basic safety features to prevent harassment and impersonation. Herrick v. Grindr LLC (CA2 2019). Another granted immunity on a claim that a social media company defectively designed its product by creating a feature that encouraged reckless driving. Lemmon v. Snap, Inc. (CD Cal. 2020).

A common thread through all these cases is that the plaintiffs were not necessarily trying to hold the defendants liable “as the publisher or speaker” of third-party content. §230(c)(1). Nor did their claims seek to hold defendants liable for removing content in good faith. §230(c)(2). Their claims rested instead on alleged product design flaws—that is, the defendant’s own misconduct.  Cf. FTC v. Accusearch, Inc. (CA10 2009) (Tymkovich,  J.,  concurring)  (stating that §230 should not apply when the plaintiff sues over a defendant’s “conduct rather than for the content of the information”). Yet courts, filtering their decisions through the policy argument that “Section 230(c)(1) should be construed broadly,” give defendants immunity.

[Conclusion:] Paring back the sweeping immunity courts have read into §230 would not necessarily render defendants liable for online misconduct. It simply would give plaintiffs a chance to raise their claims in the first place. Plaintiffs still must prove the merits of their cases, and some claims will undoubtedly fail. Moreover, States and the Federal Government are free to update their liability laws to make them more appropriate for an Internet-driven society.

Extending §230 immunity beyond the natural reading of the text can have serious consequences. Before giving companies immunity from civil claims for “knowingly host[ing] illegal child pornography,” Doe v. Bates (EDTex. 2006), or for race discrimination, Sikhs for Justice, we should be certain that is what the law demands. Without the benefit of briefing on the merits, we need not decide today the correct interpretation of §230. But in an appropriate case, it behooves us to do so.

I like the broad reading of § 230 as a policy matter, and I think it’s defensible as a statutory matter. And I think some of the distinctions that Justice Thomas’s opinion draws, for instance between platform design features and platform publishing decisions isn’t consistent with the text: Deciding how to organize your newspaper, magazine, or book, and what communicative “features” to include in it (e.g., what information to include connected to photographs), is indeed the function of a “publisher,” and I think § 230 should reasonably be read as applying that to web sites and other platforms.

But on balance I think Justice Thomas’s argument is a forceful and thoughtful analysis of the statutory text, and the common-law backdrop against which the text (especially terms such as “publisher”) should be interpreted. And of course it will be especially important in the debate, because it’s coming from a Supreme Court Justice (and one who is so admired by some and so disapproved of by others); so I thought I’d pass it along.

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Justice Thomas Writes in Favor of a Narrow Reading of 47 U.S.C. § 230

From his statement today respecting the denial of certiorari this morning in Malwarebytes, Inc. v. Enigma Software Group USA, LLC:

I write to explain why, in an appropriate case, we should consider whether the text of this increasingly important statute [47 U.S.C. §230] aligns with the current state of immunity enjoyed by Internet platforms….

[The statute:] Enacted at the dawn of the dot-com era, §230 contains two subsections that protect computer service providers from some civil and criminal claims. The first is definitional. It states, “No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.” §230(c)(1). This provision ensures that a company (like an e-mail provider) can host and transmit third-party content without subjecting itself to the liability that sometimes attaches to the publisher or speaker of unlawful content.

The second subsection provides direct immunity from some civil liability. It states that no computer service provider “shall be held liable” for (A) good-faith acts to restrict access to, or remove, certain types of objectionable content; or (B) giving consumers tools to filter the same types of content. §230(c)(2). This limited protection enables companies to create community guidelines and remove harmful content without worrying about legal reprisal.

[The publisher/distributor distinction:] Congress enacted this statute against specific background legal principles. See Stewart v. Dutra Constr. Co. (2005) (interpreting a law by looking to the “backdrop against which Congress” acted). Traditionally, laws governing illegal content distinguished between publishers or speakers (like newspapers) and distributors (like newsstands and libraries).

Publishers or speakers were subjected to a higher standard because they exercised editorial control. They could be strictly liable for transmitting illegal content.

But distributors were different. They acted as a mere conduit without exercising editorial control, and they often transmitted far more content than they could be expected to review. Distributors were thus liable only when they knew (or constructively knew) that content was illegal. See, e.g., Stratton Oakmont, Inc. v. Prodigy Services Co., (N.Y. trial ct. 1995); Restatement (Second) of Torts §581 (1976); cf. Smith v. California (1959) (applying a similar principle outside the defamation context).

The year before Congress enacted §230, one court blurred this distinction…. The court determined that [a service provider’s] decision to exercise editorial control over some content “render[ed] it a publisher” even for content it merely distributed. Taken at face value, [in relevant part,] §230(c) alters the Stratton Oakmont rule … [by] indicat[ing] that an Internet provider does not become the publisher of a piece of third-party content—and thus subjected to strict liability—simply  by  hosting  or  distributing  that  content. [But a] dopting the too-common practice of reading extra immunity into statutes where it does not belong, see Baxter v. Bracey (2020) (Thomas, J., dissenting from denial of certiorari [and writing about qualified immunity]), courts have relied on policy and purpose arguments to grant sweeping protection to Internet platforms….

Courts have discarded the longstanding distinction between “publisher” liability and “distributor” liability. Although the text of §230(c)(1) grants immunity only from “publisher” or “speaker” liability, the first appellate court to consider the statute held that it eliminates distributor liability too—that is, §230 confers immunity even when a company distributes content that it knows is illegal. In reaching this conclusion, the court stressed that permitting distributor liability “would defeat the two primary purposes of the statute,” namely, “immuniz[ing] service providers” and encouraging “selfregulation.” And subsequent decisions … have adopted this holding as a categorical rule across all contexts.

To be sure, recognizing some overlap between publishers and distributors is not unheard of. Sources sometimes use language that arguably blurs the distinction between publishers and distributors…. Yet there are good reasons to question this interpretation.

First, Congress expressly imposed distributor liability in the very same Act that included §230. Section 502 of the Communications Decency Act makes it a crime to “knowingly … display” obscene material to children, even if a third party created that content. This section is enforceable by civil remedy. It is odd to hold, as courts have, that Congress implicitly eliminated distributor liability in the very Act in which Congress explicitly imposed it.

Second, Congress enacted §230 just one year after Stratton Oakmont used the terms “publisher” and “distributor,” instead of “primary publisher” and “secondary publisher.” If, as courts suggest, Stratton Oakmont was the legal backdrop on which Congress legislated, one might expect Congress to use the same terms Stratton Oakmont used.

Third, had Congress wanted to eliminate both publisher and distributor liability, it could have simply created a categorical immunity in §230(c)(1): No provider “shall be held liable” for information provided by a third party. After all, it used that exact categorical language in the very next subsection, which governs removal of content. §230(c)(2). Where Congress uses a particular phrase in one subsection and a different phrase in another, we ordinarily presume that the difference is meaningful….

[Internet companies’ selecting and editing decisions:] Courts have also departed from the most natural reading of the text by giving Internet companies immunity for their own content. Section 230(c)(1) protects a company from publisher liability only when content is “provided by another information content provider.” Nowhere does this provision protect a company that is itself the information content provider. And an information content provider is not just the primary author or creator; it is anyone “responsible, in whole or in part, for the creation or development” of the content.

But from the beginning, courts have held that §230(c)(1) protects the “exercise of a publisher’s traditional editorial functions—such as deciding whether to publish, withdraw, postpone or alter content.” Only later did courts wrestle with the language in §230(f)(3) suggesting providers are liable for content they help develop “in part.” To harmonize that text with the interpretation that §230(c)(1) protects “traditional editorial functions,” courts relied on policy arguments to narrowly construe §230(f)(3) to cover only substantial or material edits and additions.

Under this interpretation, a company can solicit thousands of potentially defamatory statements, “selec[t] and edi[t] … for publication” several of those statements, add commentary, and then feature the final product prominently over other submissions—all while enjoying immunity. Jones v. Dirty World Entertainment Recordings LLC (CA6 2014) (interpreting “development” narrowly to “preserv[e] the broad immunity th[at §230] provides for website operators’ exercise of traditional publisher functions”). To say that editing a statement and adding commentary in this context does not “creat[e] or develo[p]” the final product, even in part, is dubious….

[Internet companies’ decisions to remove certain material:] The decisions that broadly interpret §230(c)(1) to protect traditional publisher functions also eviscerated the narrower liability shield Congress included in the statute. Section 230(c)(2)(A) encourages companies to create content guidelines and protects those companies that “in good faith … restrict access to or availability of material that the provider or user considers to be obscene, lewd, lascivious, filthy, excessively violent, harassing, or otherwise objectionable.” Taken together, both provisions in §230(c) most naturally read to protect companies when they unknowingly decline to exercise editorial functions to edit or remove third-party content, §230(c)(1), and when they decide to exercise those editorial functions in good faith, §230(c)(2)(A).

But by construing §230(c)(1) to protect any decision to edit or remove content, courts have curtailed the limits Congress placed on decisions to remove content, see e-ventures Worldwide, LLC v. Google, Inc. (MD Fla. 2017) (rejecting the interpretation that §230(c)(1) protects removal decisions because it would “swallo[w] the more specific immunity in (c)(2)”). With no limits on an Internet company’s discretion to take down material, §230 now apparently protects companies who racially discriminate in removing content.  Sikhs for Justice, Inc. v. Facebook, Inc. (CA9 2017), aff ‘g (ND Cal. 2015) (concluding that “‘any activity that can be boiled down to deciding whether to exclude material that third parties seek to post online is perforce immune'” under §230(c)(1)).

[Internet companies’ decisions about structuring their output and user interface:] Courts also have extended §230 to protect companies from a broad array of traditional product-defect claims. In one case, for example, several victims of human trafficking alleged that an Internet company that allowed users to post classified ads for “Escorts” deliberately structured its website to facilitate illegal human trafficking. Among other things, the company “tailored its posting requirements to make sex trafficking easier,” accepted anonymous payments, failed to verify e-mails, and stripped metadata from photographs to make crimes harder to track. Jane Doe No. 1 v. Backpage.com, LLC (CA1 2016). Bound by precedent creating a “capacious conception of what it means to treat a website operator as the publisher or speaker,” the court held that §230 protected these website design decisions and thus barred these claims.

Consider also a recent decision granting full immunity to a company for recommending content by terrorists.  Force v. Facebook, Inc. (CA2 2019). The court first pressed the policy argument that, to pursue “Congress’s objectives, … the text of Section 230(c)(1) should be construed broadly in favor of immunity.” It then granted immunity, reasoning that recommending content “is an essential result of publishing.” Unconvinced, the dissent noted that, even if all publisher conduct is protected by §230(c)(1), it “strains the English language to say that in targeting and recommending these writings to users … Facebook is acting as ‘the publisher of … information provided by another information content provider.'”

Other examples abound. One court granted immunity on a design-defect claim concerning a dating application that allegedly lacked basic safety features to prevent harassment and impersonation. Herrick v. Grindr LLC (CA2 2019). Another granted immunity on a claim that a social media company defectively designed its product by creating a feature that encouraged reckless driving. Lemmon v. Snap, Inc. (CD Cal. 2020).

A common thread through all these cases is that the plaintiffs were not necessarily trying to hold the defendants liable “as the publisher or speaker” of third-party content. §230(c)(1). Nor did their claims seek to hold defendants liable for removing content in good faith. §230(c)(2). Their claims rested instead on alleged product design flaws—that is, the defendant’s own misconduct.  Cf. FTC v. Accusearch, Inc. (CA10 2009) (Tymkovich,  J.,  concurring)  (stating that §230 should not apply when the plaintiff sues over a defendant’s “conduct rather than for the content of the information”). Yet courts, filtering their decisions through the policy argument that “Section 230(c)(1) should be construed broadly,” give defendants immunity.

[Conclusion:] Paring back the sweeping immunity courts have read into §230 would not necessarily render defendants liable for online misconduct. It simply would give plaintiffs a chance to raise their claims in the first place. Plaintiffs still must prove the merits of their cases, and some claims will undoubtedly fail. Moreover, States and the Federal Government are free to update their liability laws to make them more appropriate for an Internet-driven society.

Extending §230 immunity beyond the natural reading of the text can have serious consequences. Before giving companies immunity from civil claims for “knowingly host[ing] illegal child pornography,” Doe v. Bates (EDTex. 2006), or for race discrimination, Sikhs for Justice, we should be certain that is what the law demands. Without the benefit of briefing on the merits, we need not decide today the correct interpretation of §230. But in an appropriate case, it behooves us to do so.

I like the broad reading of § 230 as a policy matter, and I think it’s defensible as a statutory matter. And I think some of the distinctions that Justice Thomas’s opinion draws, for instance between platform design features and platform publishing decisions isn’t consistent with the text: Deciding how to organize your newspaper, magazine, or book, and what communicative “features” to include in it (e.g., what information to include connected to photographs), is indeed the function of a “publisher,” and I think § 230 should reasonably be read as applying that to web sites and other platforms.

But on balance I think Justice Thomas’s argument is a forceful and thoughtful analysis of the statutory text, and the common-law backdrop against which the text (especially terms such as “publisher”) should be interpreted. And of course it will be especially important in the debate, because it’s coming from a Supreme Court Justice (and one who is so admired by some and so disapproved of by others); so I thought I’d pass it along.

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Desperate Illinois To Borrow From Fed’s “Lender Of Last Resort” Facility A Second Time

Desperate Illinois To Borrow From Fed’s “Lender Of Last Resort” Facility A Second Time

Tyler Durden

Tue, 10/13/2020 – 11:20

Authored by Ted Dabrowski via Wirepoints.org,

Illinois is set to borrow several billion from the Federal Reserve’s Municipal Liquidity Fund (MLF) for a second time if a new U.S. stimulus package and a progressive tax hike scheme for Illinois don’t come through, according to comments from Illinois Gov. J.B. Pritzker. Illinois already borrowed $1.2 billion from the MLF earlier this year in an attempt to close some of the state’s 2020 budget shortfall.

The borrowing is significant since Illinois is the only state in the country to tap the MLF. The Fed created the MLF in April to be a “lender of last resort,” where cities, states and other government entities can go if they can’t raise money as a result of COVID-19. The governor’s comments are an admission that the normal financial markets aren’t willing to lend money to Illinois at competitive terms. 

Normally, billions are raised by cities and states in the municipal bond market, where banks, insurance companies and all types of financial entities lend money directly to governments. But COVID put all that at risk, leading the Fed to step in to make sure governments had somewhere to go if the markets weren’t working.

Fortunately, despite some initial hiccups early on in the pandemic, the financial markets have worked just fine. Billions have been raised by cities and states across the country without having to tap the Fed.

The only exception so far, when it comes to city and state governments, is Illinois. The state borrowed from the MLF in June after the state failed to successfully raise $1.2 billion from the markets one month earlier. New York’s Metropolitan Transportation Authority is the only other borrower in the country to tap the MLF.

COVID-19 has brought to full view all of Illinois’ pre-pandemic problems. The increased stress is highlighting Illinois’ extreme outlier position nationally when it comes to finances, notably pension debts and the state’s unwillingness to reform. Gov. Pritzker continues to count on a federal bailout and more tax hikes to keep the state afloat, but neither will reverse the problems of overwhelming pension costs, the “nation’s least-tax-friendly-state” status and the increasing outmigration of Illinois residents. Wirepoints laid out the state’s outlier status in its recent special report linked here.

Fiscal reality kicks in

Fiscal reality began setting in for Illinois after the state was forced to pay punitive rates when it borrowed $800 million from the markets in May. Illinois’ borrowing rate then was 5.65 percent, five times higher than what well-run, AAA-rated states were paying to borrow money – around 1.1 percent.

It’s a massive penalty that ordinary Illinoisans are being forced to pay through higher taxes or cuts in core government services. The penalty reflects the continued collapse in the state’s finances. Unpaid bills of more than $8 billion$261 billion in state pension debts, and the legislature’s unwillingness to pass any reforms has destroyed confidence in Illinois’ ability to manage its finances. Gov. Pritzker refuses to pursue pension reform, calling any attempts a “fantasy.”

As the below graphic shows, Illinois’ borrowing “penalty” – what the state pays over and above what well-run states pay to borrow – spiked to 4.50 percentage points at the time of the $800 million borrowing in May. That means Illinois’ debt was effectively trading like junk bonds, even though the state was still rated one notch better than junk by all three rating agencies.

Gov. Pritzker has increased Illinois’ dependence on the federal government since the first $1.2 billion MLF borrowing. The governor “balanced” the state’s 2021 budget by including a planned $5 billion borrowing from the Fed, with a further hope to repay that debt via another federal stimulus package.

The governor’s refusal to pursue structural reforms has not gone unnoticed by the rating agencies. Neither has the governor’s failure to pursue budget savings since the pandemic started, though the governor has finally begun talking about cuts. He recently asked his agencies to submit proposals for 5 percent cuts in 2021 and 10 percent in 2022.

That hasn’t impressed the S&P, which noted in a recent report:

 “The magnitude of the current budget gap and reliance on one-time measures make us question Illinois’ ability to achieve structural balance in a reasonable time. Even if Illinois receives federal aid in fiscal 2021, we expect that it will face challenging budget gaps beyond the current fiscal year.”

The rating agency’s analysis reads like it is setting the stage for downgrading Illinois to junk: 

“With the need for additional borrowing, an elevated bill backlog, and lingering substantial structural imbalance, Illinois could exhibit further characteristics of a non-investment-grade issuer.”

Illinois is like the financial basket case down the street whose credit score is so poor he has to borrow at crazy rates from payday lenders. The solution isn’t to keep doing the same things over and over. Instead, it’s to cut up the credit cards, change the bad spending habits and restructure the massive debts.

Read more about Illinois’ fiscal mismanagement:

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Federal Court Rules Against Louisiana High School After Painting Over Student’s Trump Mural

Federal Court Rules Against Louisiana High School After Painting Over Student’s Trump Mural

Tyler Durden

Tue, 10/13/2020 – 10:47

Authored by Jonathan Turley,

Many of us in the free speech community have long complained that the 1969 case of Tinker v. Des Moines Independent Community School District is often dismissed in cases addressing the free speech rights of students. The famous decision declared that students “do not shed their constitutional rights to freedom of speech or expression at the schoolhouse gate.”

Yet, courts have regularly curtailed free speech rights in deference to school officials maintaining discipline and order in their schools, even in the regulation of speech outside of schools. One rare victory emerged this week in Louisiana where a federal judge ruled that Superintendent Frances Varnado and Washington Parish School District board violated the rights of a high school senior by painting over his mural of President Donald Trump. U.S. District Judge Eldon Fallon relied on Tinker and declared the mural to be protected political speech.

Seniors at Pine Junior-Senior High School can pay $25 for an assigned parking spot and paint the spot as they deem fit, so long as the painting does not include profanity, lewd images and other students’ names. Ned Thomas painted an image of President Trump donned in stars and stripes sunglasses and a bandana.

Superintendent Varnado and the school board declared the mural “too political” and ordered it painted over.

Varnado insisted that she was merely trying to “to avoid controversy, not stir it up.”  Of course, many crackdowns on free speech are justified as an effort to avoid controversy or unrest. Thomas said that he was given no chance to contest the decision and that the mural was painted over ten minutes after he received a call from the school.

The case is a classic example of how school officials have become emboldened in acts of censorship and speech regulation. We have been discussing the alarming rise of speech limitations and sanctions imposed by school officials. We have seen a steady erosion of the free speech rights of students in the last decade. The Supreme Court accelerated that trend in its Morse decision. Former JDHS Principal Deb Morse suspended a student in 2002 during the Olympic Torch Relay for holding up a 14-foot banner across from the high school that read “Bong Hits 4 Jesus.” The case ultimately led to the Supreme Court which ruled in Morse v. Frederick ruling in 2007 for the Board — a decision that I strongly disagreed with and one that has encouraged over-reaching by school officials into protected areas.  Cheerleaders are expected to conform their free speech to accept positions or risk removal from their teams and even liking images on social media can get students suspended.

Fallon’s decision is a refreshing endorsement of the free speech rights of high school students. Fallon held:

The parties do not dispute that Tinker governs this case.

The painting of President Trump cannot reasonably be described as obscene or plainly offensive on its face, nor can it be construed as school-sponsored speech. The Court concludes that N.T.’s portrait constitutes pure political speech under the fourth category. Accordingly, the school’s actions will be analyzed under the framework that student speech cannot be restricted on the basis of viewpoint “unless there is a showing of material and substantial disruption.”

N.T.’s painting, while it is certainly a stylized and colorful image, depicts the sitting President of the United States. This is not a case involving a symbol such as a Confederate flag, which has an established meaning as a “symbol of racism and intolerance, regardless of whatever other meanings may be associated with it.” A.M. ex rel. McAllum v. Cash, 585 F.3d 214, 224 (5th Cir. 2009). Moreover, the painting conforms with all Pine Sr. High School rules regarding senior parking spots. In fact, the student obtained the Principal’s approval before the parking spot was ever painted. Because the Washington Parish School Board opened its schools for student speech by enacting its “Senior Paint Your Parking Space” policy, the First Amendment requires that students be allowed to express their political views freely, absent any conflict with school guidelines.

N.T. stated that he intended the painting to reflect his support for the President’s re-election campaign. Had N.T. worn a Trump lapel pin or displayed a Trump bumper sticker on his car, surely this would have amounted to political speech protected under the First Amendment. The Court sees no difference between those acts of expression and N.T.’s painting at issue here.

Bravo.

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