A proposed bill in Nevada makes it possible for tech companies to become independent governments.
"We The People" more like "We The Tech Companies"
Last month, I wrote about how the United States government was not doing enough to combat the growing power of "Big Tech" in my view. Well, it seems as if big tech no longer needs to worry about potential government involvement. New legislation proposed in Nevada's state by Governor Sisolak on January 19th, 2021, will make it possible for tech firms to come into the form and function as "independent governmental bodies" -Las Vegas Review-Journal.
According to a Colton Lochhead report at the Las Vegas Review-Journal, Tech firms with enough money can acquire land in Nevada and set up their firms. These companies can only qualify if they have "innovative technology." Areas, where these firms operate will be known as "innovation zones." Over time, these zones will be granted the ability to impose taxes, form school districts, justice courts, and provide other governmental services.
To be considered by Nevada state to start your government under the shield of being an innovative "tech company," you will need to purchase 50,000 acres of unused land inside of a single county and plan to invest 1billion over ten years into the zone. Each zone would be required to have a three-member board of supervisors. BUT, the company itself has a significant say over who sits on that board, according to the Las Vegas Review-Journal. According to the proposed bill, there will be an "industry-specific tax" imposed on any firm that sets up an "innovation zone" this would "benefit the state."
Blockchains LLC is the first company looking to move into Nevada and set up an innovation zone. Cryptocurrency millionaire Jeffery Berns founded the company in 2014. In 2018 Blockchains LLC purchased 67,125 acres of land in northern Nevada. That same year, according to the Nevada state campaign finance record, $10,000 was donated to the campaign of Governor Sisolak. Who made the generous donation? You guessed it, Blockchains LLC. Another $50,000 was presented on behalf of Blockchains LLC to the Home Means Nevada PAC, a large democratic super PAC in the state that helped Sisolak transition into office. That donation was made in January of 2019. I will let you determine how to take that information. I see it as blatant political corruption.
This speaks to the more significant issue of money in politics, especially big business' money in politics. Here you have an extremely wealthy man with a company that creates "Nonstop Software," literally trying to purchase governmental power. If this Nevada law passes, he will have done just that.
In January, it was free speech. Now in February, it's becoming an "independent governmental body." It is not crazy to think that "imposing tax, creating justice courts, and forming school districts" are just some of the first things these new governments will do. What is next? Forming police forces? Having their own immigration or trade policy? We have never seen this before, so who knows the real possibilities if this law passes.
The bill proposed a tax that the state will implement on the Innovation zones, but it does not say how the state will use it. Shouldn't that be apart of a pending bill? Also, other than creating jobs (number unclear), what do the county residents get? How does this benefit them? If the innovation zones can implement taxes of their own, can we assume that the people who live in the counties where these firms set up shop have first access to whatever "innovative tech" these companies claim to have?
If Blockchains LLC sets its own taxes for the people who live in the county, perhaps they can have first entry to SandBox city? I doubt it. I am sure the entrance into a "smart city" where "life is better" under an independent governmental body is not cheap. It will not be easy to get into, even when the independent governmental body takes money out of your paycheck. The area where Blockchains LLC is setting up is Storey County. In Storey County, 4010 people live there according to the 2010 census, and in 2018 there were over 18,000 people who worked in Storey County.
If a 25 member tech company purchasing over 60,000 acres of land to set up an “innovation zone” that will eventually operate as an independent government and is planning on building a smart city where life is better sounds too good to be true or the plotline in a dystopian SyFy movie trust your gut.
“We the people” is looking more and more like “we the tech companies” If this law passes in Nevada, people will be watching closely. It would not be crazy to think this idea won’t cross state lines. States like Texas or California will be perfect candidates if this bill becomes law. Who knows what will happen. I hope it’s nothing tragic.
Best
-Grant