BP Executive Says Explosion Was Known Risk





NEW ORLEANS – On the first day of court testimony in a suit over BP’s Gulf oil spill, the company’s top  executive in North American operations at the time of the disaster conceded Tuesday that a well explosion was identified as a risk before the blowout.




 “There was a risk identified for a blowout,” said Lamar McKay, the former president of BP America and now chief executive in charge of global upstream operations. “The blowout was an identified risk, and it was a big risk, yes.”


 Bob Cunningham, a lawyer for private plaintiffs, tried to pin Mr. McKay down on BP’s responsibility for the 2010 disaster that left 11 workers dead and dumped millions of gallons of oil into the gulf. Mr. Cunningham suggested that BP’s cost-cutting and risk-taking culture were at the heart of the explosion and spill. He pressed Mr. McKay on the fact that a BP report on the accident did not cite management failures as a cause for the accident, while contractors were held responsible.


  But Mr. McKay repeatedly responded by saying that while BP was responsible for designing the well, the rig, cement and other contractors shared responsibility for safety on the drilling operations.  


  “It’s a team effort,” he said. “It’s a shared responsibility to manage the safety and risk.”


The Federal District Court trial in New Orleans is bundling suits brought by the Justice Department, state governments, private business and individual claimants against BP and several of its contractors. Decisions on culpability and damages could be a year or more away, but they are likely to have profound impacts on environmental law and determine the viability of BP as a major oil company with global ambitions.


Mr. McKay testified for about an hour at the end of the day, and will continue on Wednesday. He told the court that there were risks drilling both in deep waters and in shallow waters, but that a blowout could be more damaging in deep waters because it is more difficult to control. There was little if anything in Mr. McKay’s comments that diverged from what BP executives have said in the past.


After the April 2010 spill, internal BP documents showed that in March, after several weeks of problems on the rig, BP was struggling with a loss of “well control.” And for months earlier, it was concerned about the well casing and the blowout preventer, which are considered critical pieces in the chain of events that led to the disaster on the rig.


On June 22, 2009, for example, BP engineers expressed concerns that the metal casing the company wanted to use might collapse under high pressure.


“This would certainly be a worst-case scenario,” Mark E. Hafle, a senior drilling engineer at BP, warned in an internal report. “However, I have seen it happen so know it can occur.”


  At times on Tuesday, Mr. McKay shifted and appeared uncomfortable on the witness stand. He acknowledged that he had never read a textbook on safety system engineering before or after the accident or a safety report written by a BP consultant, who had testified earlier in the day.


   Mr. McKay was the second witness to appear in a multiphase trial that will find who was responsible for the accident, whether they were grossly negligent, and how much oil was spilled. He followed Robert Bea, a professor emeritus of engineering at the University of California, Berkeley, and former safety systems consultant for BP, who largely blamed the British company’s culture for the accident.


   “It’s a culture of every dollar counts,” Mr. Bea said. “It’s a classic failure of management and leadership.” 


  Under the Clean Water Act, fines against BP could range from $1,100 for every barrel spilled through simple negligence to as much as $4,300 a barrel if the company were found to have been grossly negligent. The federal government has estimated that about 4 million barrels of oil spilled in the accident, meaning liabilities of as much as $5.4 billion to $21 billion. BP has claimed that 3.1 million barrels should be the uppermost spill limit. 


This article has been revised to reflect the following correction:

Correction: February 26, 2013

An earlier version of this article misstated Lamar McKay’s title when he headed BP America. He was president, not chief executive.



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Global Health: After Measles Success, Rwanda to Get Rubella Vaccine


Rwanda has been so successful at fighting measles that next month it will be the first country to get donor support to move to the next stage — fighting rubella too.


On March 11, it will hold a nationwide three-day vaccination campaign with a combined measles-rubella vaccine, hoping to reach nearly five million children up to age 14. It will then integrate the dual vaccine into its national health service.


Rwanda can do so “because they’ve done such a good job on measles,” said Christine McNab, a spokeswoman for the Measles and Rubella Initiative, which will provide the vaccine and help pay for the campaign.


Rubella, also called German measles, causes a rash that is very similar to the measles rash, making it hard for health workers to tell the difference.


Rubella is generally mild, even in children, but in pregnant women, it can kill the fetus or cause serious birth defects, including blindness, deafness, mental retardation and chronic heart damage.


Ms. McNab said that Rwanda had proved that it can suppress measles and identify rubella, and it would benefit from the newer, more expensive vaccine.


The dual vaccine costs twice as much — 52 cents a dose at Unicef prices, compared with 24 cents for measles alone. (The MMR vaccine that American children get, which also contains a vaccine against mumps, costs Unicef $1.)


More than 90 percent of Rwandan children now are vaccinated twice against measles, and cases have been near zero since 2007.


The tiny country, which was convulsed by Hutu-Tutsi genocide in 1994, is now leading the way in Africa in delivering medical care to its citizens, Ms. McNab said. Three years ago, it was the first African country to introduce shots against human papilloma virus, or HPV, which causes cervical cancer.


In wealthy countries, measles kills a small number of children — usually those whose parents decline vaccination. But in poor countries, measles is a major killer of malnourished infants. Around the world, the initiative estimates, about 158,000 children die of it each year, or about 430 a day.


Every year, an estimated 112,000 children, mostly in Africa, South Asia and the Pacific islands, are born with handicaps caused by their mothers’ rubella infection.


Thanks in part to the initiative — which until last year was known just as the Measles Initiative — measles deaths among children have declined 71 percent since 2000. The initiative is a partnership of many health agencies, vaccine companies, donors and others, but is led by the American Red Cross, the United Nations Foundation, the Centers for Disease Control and Prevention, Unicef and the World Health Organization.


Read More..

Global Health: After Measles Success, Rwanda to Get Rubella Vaccine


Rwanda has been so successful at fighting measles that next month it will be the first country to get donor support to move to the next stage — fighting rubella too.


On March 11, it will hold a nationwide three-day vaccination campaign with a combined measles-rubella vaccine, hoping to reach nearly five million children up to age 14. It will then integrate the dual vaccine into its national health service.


Rwanda can do so “because they’ve done such a good job on measles,” said Christine McNab, a spokeswoman for the Measles and Rubella Initiative, which will provide the vaccine and help pay for the campaign.


Rubella, also called German measles, causes a rash that is very similar to the measles rash, making it hard for health workers to tell the difference.


Rubella is generally mild, even in children, but in pregnant women, it can kill the fetus or cause serious birth defects, including blindness, deafness, mental retardation and chronic heart damage.


Ms. McNab said that Rwanda had proved that it can suppress measles and identify rubella, and it would benefit from the newer, more expensive vaccine.


The dual vaccine costs twice as much — 52 cents a dose at Unicef prices, compared with 24 cents for measles alone. (The MMR vaccine that American children get, which also contains a vaccine against mumps, costs Unicef $1.)


More than 90 percent of Rwandan children now are vaccinated twice against measles, and cases have been near zero since 2007.


The tiny country, which was convulsed by Hutu-Tutsi genocide in 1994, is now leading the way in Africa in delivering medical care to its citizens, Ms. McNab said. Three years ago, it was the first African country to introduce shots against human papilloma virus, or HPV, which causes cervical cancer.


In wealthy countries, measles kills a small number of children — usually those whose parents decline vaccination. But in poor countries, measles is a major killer of malnourished infants. Around the world, the initiative estimates, about 158,000 children die of it each year, or about 430 a day.


Every year, an estimated 112,000 children, mostly in Africa, South Asia and the Pacific islands, are born with handicaps caused by their mothers’ rubella infection.


Thanks in part to the initiative — which until last year was known just as the Measles Initiative — measles deaths among children have declined 71 percent since 2000. The initiative is a partnership of many health agencies, vaccine companies, donors and others, but is led by the American Red Cross, the United Nations Foundation, the Centers for Disease Control and Prevention, Unicef and the World Health Organization.


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HTC Settles F.T.C. Charges Over Security Flaws in Devices


WASHINGTON — More than 18 million smartphones and other mobile devices made by HTC, a Taiwanese company that is one of the largest sellers of smartphones in the United States, had security flaws that could allow location tracking of users against their will and the theft of personal information stored on their phones, federal officials said Friday.


The Federal Trade Commission charged HTC with customizing the software on its Android- and Windows-based phones in ways that let third-party applications install software that could steal personal information, surreptitiously send text messages or enable the device’s microphone to record the user’s phone calls.


The action is the first attempt by the commission to police a manufacturer of mobile devices. As smartphones and tablets become a common way for consumers to shop, bank and chat online, personal information and privacy will need to be guarded.


HTC America, based in Bellevue, Wash., agreed to settle the civil suit with the commission by issuing software patches that close the security holes, and by creating a security program that will be monitored by an independent party for the next 20 years. The F.T.C. does not have the authority to assess fines in consumer protection cases.


“The company didn’t design its products with security in mind,” Lesley Fair, a senior lawyer in the commission’s Bureau of Consumer Protection, wrote in a blog post. “HTC didn’t test the software on its mobile devices for potential security vulnerabilities, didn’t follow commonly accepted secure coding practices and didn’t even respond when warned about the flaws in its devices.”


An HTC official said Friday that the company had already started to update its software and distribute it to users of some, but not all, of the affected phones.


“Working with our carrier partners, we have addressed the identified security vulnerabilities on the majority of devices in the U.S. released after December 2010,” Sally Julien, an HTC spokeswoman, said in a statement. “We’re working to roll out the remaining software updates now and recommend customers download them once available.”


“Privacy and security are important,” the statement added, “and we are committed to improving practices that help safeguard our customers’ devices and data.”


The trade commission charged that the security flaws resulted from HTC’s modifying the operating system software used on most of the affected phones. In the case of Android, created by Google, the system is designed to protect sensitive information and phone functions through what is known as a permission-based security model.


That requires a user, when installing an application that is not a standard part of the operating system, to be notified and to agree that the application could gain access to certain information or functions.


HTC, however, preinstalled certain apps on its phones in a way that, in addition to preventing consumers from removing them, disabled the permission-based model and allowed newly installed apps to have immediate access to personal data.


“The analogy isn’t exact,” wrote Ms. Fair of the F.T.C., “but it’s like giving a friend the combination to a safe only to find out he’s handing it over to anyone who asks.”


That security hole could, for example, let the rogue software secretly record users’ phone conversations or track their location.


Flaws in the security system could also give third-party apps access to phone numbers, contents of text messages, browsing history and information like credit card numbers and banking transactions. Those flaws also affected HTC phones that used Windows-based operating systems.


While HTC’s actions introduced numerous security vulnerabilities to its phones, a commission official said it was not clear how many users experienced illegal incursions into their phones and personal information.


The flaw in the company’s phones has been known since at least 2011. HTC acknowledged the problems at that time and developed software patches for at least some of the deficiencies that year.


But the problems were far from minor. The F.T.C. said that text-message toll fraud, in which a hacker causes a phone to send text messages to a number that charges the user for delivery of the message, “is one of the most common types of Android malware,” or malicious software.


HTC’s user manuals either said or implied that a user was protected against malware because of the permission-based security, the commission said.


The commission will collect public comments on the proposed remedies for 30 days, after which it will decide whether to formally carry out the order. If HTC subsequently violates the order’s restrictions and requirements, it faces civil penalties of up to $16,000 a violation.


This article has been revised to reflect the following correction:

Correction: February 25, 2013

A picture with an earlier version of this article was published in error. The settlement between HTC and the F.T.C. involves phones running Windows Mobile; it did not involve the later operating system Windows 8, which the phone in the picture was running.



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Kerry Promises Not to Leave Syrian Rebels ‘Dangling in the Wind’


Hussein Malla/Associated Press


In a cave in Idlib Province, Free Syrian Army fighters did a traditional dance and sang songs critical of President Bashar al-Assad.







BERLIN — Secretary of State John Kerry said on Monday that the Obama administration has been considering new steps to increase support for the Syrian opposition and hasten the departure of President Bashar al-Assad and that some of them would be decided at an international conference in Rome this week.




“We are determined that the Syrian opposition is not going to be dangling in the wind wondering where the support is or if it’s coming,” Mr. Kerry said at a news conference in London. “And we are determined to change the calculation on the ground for President Assad.”


Mr. Kerry’s comments came amid diplomatic maneuvering and some drama over the Rome meeting, scheduled for Thursday.


After the Syrian opposition signaled that it would boycott the Rome conference to protest what it sees as negligible help from Western nations, Mr. Kerry called Moaz al-Khatib, the leader of the Syrian opposition coalition, and persuaded him to attend.


American officials have said that their goal in supporting the Syrian resistance is to build up its leverage in the hope that Mr. Assad will agree to yield power and a political transition can be negotiated to end the nearly two-year-old conflict.


In Moscow, however, Syria’s foreign minister, Walid al-Moallem, appeared to be making a competing initiative. In a statement during a visit to Russia, which has been one of the Assad government’s main backers, Mr. Moallem said that Syrian authorities were “ready for a dialogue with anyone who’s willing, even with those who carry arms.”


It was the first time that a high-ranking Syrian official had signaled that the government is open to talking with Syrian rebels who have taken up weapons against the armed forces.


It was unclear whether Mr. Moallem’s offer came with caveats, such as a precondition that the Syrian rebels must disarm first. More fundamentally, if the aim of Mr. Moallem’s offer was to achieve a cease-fire while perpetuating Mr. Assad’s hold on power it would be fundamentally at odds with the demand of the opposition that the Syrian leader must be ousted.


Mr. Kerry, for his part, was skeptical of Mr. Moallem’s intentions as well.


“What has happened in Aleppo in the last days is unacceptable,” Mr. Kerry said, referring to the Scud missile attacks the Assad government directed at the city last week. “It’s pretty hard to understand how, when you see these Scuds falling on the innocent people of Aleppo, it’s possible to take their notion that they’re ready to have a dialogue very seriously.”


London was the first stop on Mr. Kerry’s nine-nation tour and Syria figured prominently in his discussions with William Hague, the British foreign secretary, who reinforced the message that more had to done to support the Syrian opposition because the possibility of a political solution was “blocked off.”


“Our policy cannot stay static as the weeks go by,” Mr. Hague said at a joint news conference with Mr. Kerry. “It will have to change and develop.”


The European Union agreed to a British proposal that nonlethal assistance could be sent to armed groups inside Syria. Discussions were now under way among European nations to determine just what sort of aid could be sent, but some American officials had said it might include night-vision equipment or armored cars.


Mr. Kerry declined to say whether the United States would also be willing to send nonlethal assistance to armed factions fighting Mr. Assad, saying that a variety of ideas was under discussion.


“We are not coming to Rome simply to talk,” he said. “We are coming to Rome to make a decision about next steps and perhaps even other options that may or may not be discussed further after that.”


Mr. Obama last year rebuffed a proposal from the C.I.A., State Department and Pentagon that the United States train and arm a cadre of Syrian rebel fighters.


After his meetings in Britain, Mr. Kerry flew to Germany for meetings on Tuesday with German officials and Sergey V. Lavrov, the Russian foreign minister.


Michael R. Gordon reported from Berlin, and Anne Barnard from Beirut, Lebanon. Hania Mourtada contributed reporting from Beirut, and Rick Gladstone from New York.



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Johnson & Johnson Told to Pay $3.35 Million in Vaginal Mesh Case





A jury said on Monday that Johnson & Johnson should pay a South Dakota woman $3.35 million for failing to warn her doctor adequately of the potential dangers of a vaginal mesh implant made by the company’s Ethicon subsidiary, and for misrepresenting the product in brochures.




It was the first verdict among some 1,800 vaginal mesh cases pending in New Jersey against Ethicon and Johnson & Johnson, and it could affect thousands of lawsuits against other manufacturers of similar products.


The lawsuit, in state Superior Court in Atlantic City, was brought by Linda Gross, 47, of Watertown, S.D., in November 2008. It asserted that the Gynecare Prolift vaginal mesh was not safe and that J.& J. and Ethicon were liable, among other things, for “their defective design, manufacture, warnings and instructions.”


The Ethicon product, before being taken off the American market last year, was used to treat pelvic organ collapse, a condition for which the plaintiff, a nurse, was treated in November 2008. That condition occurs when tissue that holds the pelvic organs in place is weak or stretched and bulges into the vagina.


Ms. Gross filed her lawsuit after having an operation in 2006 to install a Gynecare Prolift for pelvic prolapse. Her suit said the operation led to a variety of problems, including mesh erosion, scar tissue, inflammation and “neurologic compromise.”


The suit said she had to seek medical treatment and had 18 operations to repair the damage caused by the mesh.


Ben Anderson, a member of the trial team for the plaintiff, called the jury verdict “a strong statement to Johnson & Johnson and Ethicon that they cannot put profits before women’s safety.”


The verdict, by a panel of six women and three men, followed a six-week trial before Judge Carol Higbee. After the verdict was delivered, the judge ruled that she would allow arguments on punitive damages, beginning on Tuesday.


Sheri Woodruff, a spokeswoman for Ethicon, said, “While we are always concerned when a patient experiences medical conditions like those suffered by the plaintiff, all surgeries for pelvic organ prolapse present risks of complications.”


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The Texas Tribune: Advocates Seek Mental Health Changes, Including Power to Detain


Matt Rainwaters for Texas Monthly


The Sherman grave of Andre Thomas’s victims.







SHERMAN — A worried call from his daughter’s boyfriend sent Paul Boren rushing to her apartment on the morning of March 27, 2004. He drove the eight blocks to her apartment, peering into his neighbors’ yards, searching for Andre Thomas, Laura Boren’s estranged husband.






The Texas Tribune

Expanded coverage of Texas is produced by The Texas Tribune, a nonprofit news organization. To join the conversation about this article, go to texastribune.org.




For more articles on mental health and criminal justice in Texas, as well as a timeline of the Andre Thomas case: texastribune.org






Matt Rainwaters for Texas Monthly

Laura Boren






He drove past the brightly colored slides, swings and bouncy plastic animals in Fairview Park across the street from the apartment where Ms. Boren, 20, and her two children lived. He pulled into a parking spot below and immediately saw that her door was broken. As his heart raced, Mr. Boren, a white-haired giant of a man, bounded up the stairwell, calling out for his daughter.


He found her on the white carpet, smeared with blood, a gaping hole in her chest. Beside her left leg, a one-dollar bill was folded lengthwise, the radiating eye of the pyramid facing up. Mr. Boren knew she was gone.


In a panic, he rushed past the stuffed animals, dolls and plastic toys strewn along the hallway to the bedroom shared by his two grandchildren. The body of 13-month-old Leyha Hughes lay on the floor next to a blood-spattered doll nearly as big as she was.


Andre Boren, 4, lay on his back in his white children’s bed just above Leyha. He looked as if he could have been sleeping — a moment away from revealing the toothy grin that typically spread from one of his round cheeks to the other — except for the massive chest wound that matched the ones his father, Andre Thomas (the boy was also known as Andre Jr.), had inflicted on his mother and his half-sister as he tried to remove their hearts.


“You just can’t believe that it’s real,” said Sherry Boren, Laura Boren’s mother. “You’re hoping that it’s not, that it’s a dream or something, that you’re going to wake up at any minute.”


Mr. Thomas, who confessed to the murders of his wife, their son and her daughter by another man, was convicted in 2005 and sentenced to death at age 21. While awaiting trial in 2004, he gouged out one of his eyes, and in 2008 on death row, he removed the other and ate it.


At least twice in the three weeks before the crime, Mr. Thomas had sought mental health treatment, babbling illogically and threatening to commit suicide. On two occasions, staff members at the medical facilities were so worried that his psychosis made him a threat to himself or others that they sought emergency detention warrants for him.


Despite talk of suicide and bizarre biblical delusions, he was not detained for treatment. Mr. Thomas later told the police that he was convinced that Ms. Boren was the wicked Jezebel from the Bible, that his own son was the Antichrist and that Leyha was involved in an evil conspiracy with them.


He was on a mission from God, he said, to free their hearts of demons.


Hospitals do not have legal authority to detain people who voluntarily enter their facilities in search of mental health care but then decide to leave. It is one of many holes in the state’s nearly 30-year-old mental health code that advocates, police officers and judges say lawmakers need to fix. In a report last year, Texas Appleseed, a nonprofit advocacy organization, called on lawmakers to replace the existing code with one that reflects contemporary mental health needs.


“It was last fully revised in 1985, and clearly the mental health system has changed drastically since then,” said Susan Stone, a lawyer and psychiatrist who led the two-year Texas Appleseed project to study and recommend reforms to the code. Lawmakers have said that although the code may need to be revamped, it will not happen in this year’s legislative session. Such an undertaking requires legislative studies that have not been conducted. But advocates are urging legislators to make a few critical changes that they say could prevent tragedies, including giving hospitals the right to detain someone who is having a mental health crisis.


From the time Mr. Thomas was 10, he had told friends he heard demons in his head instructing him to do bad things. The cacophony drove him to attempt suicide repeatedly as an adolescent, according to court records. He drank and abused drugs to try to quiet the noise.


bgrissom@texastribune.org



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The Texas Tribune: Advocates Seek Mental Health Changes, Including Power to Detain


Matt Rainwaters for Texas Monthly


The Sherman grave of Andre Thomas’s victims.







SHERMAN — A worried call from his daughter’s boyfriend sent Paul Boren rushing to her apartment on the morning of March 27, 2004. He drove the eight blocks to her apartment, peering into his neighbors’ yards, searching for Andre Thomas, Laura Boren’s estranged husband.






The Texas Tribune

Expanded coverage of Texas is produced by The Texas Tribune, a nonprofit news organization. To join the conversation about this article, go to texastribune.org.




For more articles on mental health and criminal justice in Texas, as well as a timeline of the Andre Thomas case: texastribune.org






Matt Rainwaters for Texas Monthly

Laura Boren






He drove past the brightly colored slides, swings and bouncy plastic animals in Fairview Park across the street from the apartment where Ms. Boren, 20, and her two children lived. He pulled into a parking spot below and immediately saw that her door was broken. As his heart raced, Mr. Boren, a white-haired giant of a man, bounded up the stairwell, calling out for his daughter.


He found her on the white carpet, smeared with blood, a gaping hole in her chest. Beside her left leg, a one-dollar bill was folded lengthwise, the radiating eye of the pyramid facing up. Mr. Boren knew she was gone.


In a panic, he rushed past the stuffed animals, dolls and plastic toys strewn along the hallway to the bedroom shared by his two grandchildren. The body of 13-month-old Leyha Hughes lay on the floor next to a blood-spattered doll nearly as big as she was.


Andre Boren, 4, lay on his back in his white children’s bed just above Leyha. He looked as if he could have been sleeping — a moment away from revealing the toothy grin that typically spread from one of his round cheeks to the other — except for the massive chest wound that matched the ones his father, Andre Thomas (the boy was also known as Andre Jr.), had inflicted on his mother and his half-sister as he tried to remove their hearts.


“You just can’t believe that it’s real,” said Sherry Boren, Laura Boren’s mother. “You’re hoping that it’s not, that it’s a dream or something, that you’re going to wake up at any minute.”


Mr. Thomas, who confessed to the murders of his wife, their son and her daughter by another man, was convicted in 2005 and sentenced to death at age 21. While awaiting trial in 2004, he gouged out one of his eyes, and in 2008 on death row, he removed the other and ate it.


At least twice in the three weeks before the crime, Mr. Thomas had sought mental health treatment, babbling illogically and threatening to commit suicide. On two occasions, staff members at the medical facilities were so worried that his psychosis made him a threat to himself or others that they sought emergency detention warrants for him.


Despite talk of suicide and bizarre biblical delusions, he was not detained for treatment. Mr. Thomas later told the police that he was convinced that Ms. Boren was the wicked Jezebel from the Bible, that his own son was the Antichrist and that Leyha was involved in an evil conspiracy with them.


He was on a mission from God, he said, to free their hearts of demons.


Hospitals do not have legal authority to detain people who voluntarily enter their facilities in search of mental health care but then decide to leave. It is one of many holes in the state’s nearly 30-year-old mental health code that advocates, police officers and judges say lawmakers need to fix. In a report last year, Texas Appleseed, a nonprofit advocacy organization, called on lawmakers to replace the existing code with one that reflects contemporary mental health needs.


“It was last fully revised in 1985, and clearly the mental health system has changed drastically since then,” said Susan Stone, a lawyer and psychiatrist who led the two-year Texas Appleseed project to study and recommend reforms to the code. Lawmakers have said that although the code may need to be revamped, it will not happen in this year’s legislative session. Such an undertaking requires legislative studies that have not been conducted. But advocates are urging legislators to make a few critical changes that they say could prevent tragedies, including giving hospitals the right to detain someone who is having a mental health crisis.


From the time Mr. Thomas was 10, he had told friends he heard demons in his head instructing him to do bad things. The cacophony drove him to attempt suicide repeatedly as an adolescent, according to court records. He drank and abused drugs to try to quiet the noise.


bgrissom@texastribune.org



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French Tax Proposal Tackles Data Harvest by Google and Facebook


PARIS — Only a few weeks after the French Constitutional Council rejected one new tax idea — a 75 percent levy on annual incomes of more than 1 million euros ($1.3 million) — another began percolating through the halls of the finance ministry here: a proposal to tax the collection of personal data on the Internet.


Google and Facebook know that John Doe “likes” wine, is shopping for a Volkswagen and often e-mails Jane Doe. The new idea would require the companies to pay for gathering that information.


Nicolas Colin, one of the authors of a report in which the idea of taxing data collection was floated in January, said the immediate goal would be to promote sound practices for data collection and protection.


While the report does not specify how much revenue the tax would yield, Mr. Colin said it would probably be minimal.


“It’s meant to incentivize everyone to operate at a higher level, not to raise a lot of money,” he said. “You can’t go from zero to collecting hundreds of millions overnight.”


Like other European countries, France has been frustrated by its inability to raise significant tax revenue from the billions of dollars in sales and profits that Internet companies, many of them American, generate in Europe every year.


And despite so-called austerity measures, budget deficits remain large.


“Every government needs revenues,” Mr. Colin, a government auditor and technology entrepreneur, said in an interview. “If they can’t get them from the most profitable companies, then they have to get them from the rest of us — individual taxpayers and smaller, struggling companies.”


Internet companies like Amazon.com, Facebook and Google stay largely out of reach of tax collectors in large European countries like Britain, France and Germany by routing their sales through smaller countries, like Ireland and Luxembourg, where corporate tax rates are lower. The companies insist that such practices are permitted under European Union law and international taxation treaties.


France and other countries have begun talks to change those conventions, so Internet companies could be taxed in the country where a sale takes place, rather than in the location where the transaction is recorded. But that could take many years, with no guarantee of any change.


On the other hand, France could impose a tax on data collection unilaterally and quickly, Mr. Colin said.


The prospects for his proposal are unclear. While the report was commissioned by the government, it is not an official policy document, and the finance ministry has yet to take a position on the idea.


On other issues involving the digital economy, the administration of President François Hollande has sent mixed signals. After threatening Google with a law that would have let publishers charge the search engine for links to their Web sites, for example, the government backed down and accepted a negotiated deal that maintains Google’s existing business model, under which links are free.


The French data protection agency, which is known by the initials C.N.I.L. and is independent of the government, has been more forthcoming about the taxation proposal.


“Personal data are the fuel of the digital economy,” Edouard Geffray, the agency’s secretary general, told the French version of the online magazine Slate. “Given that, it would seem like a natural idea to envision taxing the use of them.”


While business plans built on mining consumers’ personal information from the Internet are proliferating, so are concerns about the use of the data.


Last week, the data protection authorities of the 27 European Union countries threatened Google with punitive action over a privacy policy that the company put in effect last year, under which it harvests data from a range of services. The agencies, led by C.N.I.L., gave Google four months to make changes or face legal action. Google insists its policy complies with European Union law.


A recent study by Ovum, a research firm in London, showed that 81 percent of Internet users in France would use a “do not track” feature on Web sites if it were readily available. That was the highest percentage in any of the 11 countries surveyed.


“The privacy market is heating up,” said Mark Little, an analyst at Ovum. “There is a move away from what I would call data fracking to consumers’ creating their own contracts governing data use, and corporations’ having to abide by those.”


Mr. Colin said the main goal of his tax plan would be to reward companies for providing their customers with useful information, while penalizing those that did not do so.


Internet companies, for example, could be taxed if they collected “cookies” — digital markers of the Web sites that Internet users visit — without enabling consumers to see how the information was used. Companies that did provide that information readily would be exempt.


Analysts call such a practice “smart disclosure” because it can help consumers make informed decisions. Utilities that provide consumers with more detailed information on, for example, their patterns of electricity or natural gas consumption could help them reduce their bills.


Mr. Colin said there was no intention to stop Internet companies from collecting data.


“That would be bad for business, and it would hurt French companies too,” he said.


While Internet companies are not alone in collecting vast amounts of data, Mr. Colin made it clear that the proposal was aimed at the likes of Google and Facebook, which are making inroads in more and more areas.


“I’m convinced the telecoms, even car manufacturers, will be disrupted by these companies,” Mr. Colin said. “We’d better learn to tax them before they eat the whole economy.”


A secondary purpose of the proposal, Mr. Colin said, would be to provide leverage in negotiations for a change in international conventions on corporate taxes. If those were altered so that France could tax foreign Internet companies on their profits, then the data tax could be dropped, he said.


“In France, we are seen as a nation of tax lovers, which isn’t always good for the French image, and isn’t always true, either,” he said. “But it is true that we are leaders in this area. Maybe the French government has the opportunity to make the case for accelerated negotiations.”


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Kerry’s Meeting With Syrian Opposition at Risk






Pool photo by Jacquelyn Martin

Secretary of State John Kerry spoke to reporters on the way to London on Sunday. Mr. Kerry has said that he has new ideas on how to force President Bashar al-Assad from power in Syria.








Mr. Kerry and foreign ministers from Europe and the Middle East are scheduled to meet in Rome on Thursday with opponents of President Bashar al-Assad of Syria, including Sheik Ahmad Moaz al-Khatib, who leads the opposition. But they are threatening to boycott the conference to protest what they see as fainthearted international support.


To try to rescue the meeting, Robert S. Ford, the American ambassador to Syria and chief envoy to the opposition, was sent to Cairo on Sunday to implore opposition leaders to attend the session in Rome.


“The Syrian opposition leadership is under severe pressure now from its membership, from the Syrian people, to get more support from the international community,” said a senior administration official who was traveling on Mr. Kerry’s plane. “And in that context, there’s quite a bit of internal discussion about the value of going in international conferences.”


The issue upset the first day of a carefully choreographed trip that is intended to introduce Mr. Kerry as the chief American envoy and to give a lift to the diplomatic stalemate on Syria. Mr. Kerry, who took office this month, is traveling to Britain, Germany, France, Italy, Turkey, Egypt, Saudi Arabia, the United Arab Emirates and Qatar over 11 days.


Even before his trip was formally announced, Mr. Kerry raised expectations by saying he had new ideas on how to change Mr. Assad’s calculations that he could remain in power.


Mr. Kerry has not publicly explained the proposals, but they appear to include marshaling support from Russia, which has been providing arms and financial help to Mr. Assad. Toward that end, Mr. Kerry plans to meet in Berlin on Wednesday with Sergey V. Lavrov, Russia’s foreign minister.


The meeting with the Syrian opposition is to be hosted by Italy. Last week, the European Union agreed to extend its embargo on weapons shipments to Syria for another three months, a move that precludes European arms shipments to the opposition.


But the European Union did agree to a British proposal that nonlethal assistance be expanded. As a result, body armor, night-vision goggles, armored vehicles and other equipment can be sent to armed opposition groups in Syria, an American official said.


So far, the Obama administration has not gone that far in its support. While the United States provides nonlethal assistance like computers and radios to the opposition, it has not been willing to provide nonlethal aid to armed factions within Syria, an approach that experts say has limited its influence with these groups.


State Department officials traveling with Mr. Kerry declined to discuss whether the United States would soon be prepared to take that step.


President Obama rebuffed a proposal last year from the State Department, the Pentagon and the C.I.A. that the United States arm and train a cadre of opposition fighters.


With the violence escalating, Aleppo under attack by Scud missiles and members of a quarrelsome Syrian opposition challenging the value of the Rome meeting — which was supposed to be a highlight of Mr. Kerry’s trip — the State Department issued a statement on Saturday evening that condemned the rocket attacks “in the strongest possible terms” and prodded the Syrian opposition to attend the session.


The statement continued, “We look forward to meeting soon with the leadership of the legitimate representative of the Syrian people, the Syrian Opposition Coalition, to discuss how the United States and other friends of the Syrian people can do more to help the Syrian people achieve the political transition that they demand and that they deserve.”


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