Topics
Finance & Revenue
Finance & Revenue
Appellate Court Finds Fantasy Sports Violates Gambling Prohibition
Where: New York
What court: New York Supreme Court’s Appellate Division
How did the court get to fantasy sports laws violate the state Constitution prohibition on gambling? It found fantasy sports a game of chance
How is fantasy sports a game of chance? fantasy sports involves chance in that variables such as player injury, illness, bad weather or poor officiating impact fantasy sports
Harris Beach PLLC | New York State Appeals Court Finds Daily Fantasy Sports Law Unconstitutional
New Tax Cap Horror Story
What: A billionaire’s $238 million condo in Manhattan is taxed at 0.22%, the same rate as the lowest, property tax rate in the country, Laredo, Texas
How did this happen: a tax cap
What has been the response: City Commissioners are proposing to eliminate the caps + have all homes are assessed and taxed at full-market value
Habitat | Billionaire’s Condo Taxed at Rate of Laredo, Texas
UPDATE. California Bans State Travel to Texas. Texas Sues.
Why is Texas suing? California bans state travel to 11 states that restrict or limit LGBTQ persons in ways others are not restricted or limited
What 3 issues does Texas raise against the travel ban equated?
- economic sanctions that deprive Texas of tax revenue from the travel
- violates federal laws on interstate commerce
- discriminates against Texas business owners
Politico | Texas sues California over law banning state-sponsored travel
Previously on InfoHive:
+1 New State Travel Ban
Where: California
How many states are on California’s travel ban? 11, including Texas, Oklahoma, North Carolina, Mississippi and Kentucky
What’s the newest travel ban? Iowa
What did Iowa do to earn a travel ban? removed gender protections under Medicaid
Sacramento Bee | California adds an 11th state to its travel ban. No taxpayer-funded trips to Iowa
Texas Comptroller: Sales Tax Loophole.
An Opinion piece by Texas Comptroller points out this loophole in Texas Tax law:
“some cities and businesses have cut deals to source local sales tax on sales made over the internet solely to particular cities”
What impact does this loophole have:
- companies are rebated tax dollars
- local sales tax dollars are leaving communities
Where are these sales tax agreements found: in economic development agreements
The regulatory fix: Changes to “Rule 3.334 to clarify that local sales tax is tied to the place of business from which internet orders are fulfilled or the location to which items are shipped or delivered.”
Its a $275.8 million problem: In January 2020 $763.8 million in monthly sales tax revenue was distributed to Texas local governments. 1,200-plus cities received $488.7 million. That’s a discrepancy of $275.8 million
New Report. Economic Development & Distilleries. 2 Regulatory Goals.
The report authors: UTSA Institute for Economic Development
The report release date: February 2020
The 2 regulatory goals distillers want:
- raise their production limits
- tax break on their sales
- + permanent extension of the federal Craft Beverage Modernization and Tax Reform Act
The economic benefits of distilleries in Texas:
- bolster the agriculture community
- 162 distilleries in 2019, up from 127 in 2017
UTSA Today | UTSA researcher brews up business plan for Texas distilleries
TREND. Economic Development Meet Sustainability.
The property development transaction types: Commercial Property Assessed Clean Energy (C-PACE) transactions
An example: Petros PACE Finance, LLC , an Austin Texas based finance group + Ross Group, a Tulsa, Oklahoma developer
What sustainability will be included in the economic development project? efficient heating, cooling, plumbing and lighting systems, along with building envelope improvement on historic property including the 1920s Tulsa Club
The economic benefits:
- alternative to mezzanine debt and equity
- lowers overall capital costs
- allows investment in higher efficiency building designs
Tulsa World | Austin, Texas, finance company backs two Tulsa hotels for energy-saving measures
Coalition supporting Gig Companies on Labor Bills.
What is an example of a gig economy labor bill? Like California’s AB 5 that classifies gig economy workers as employees and not independent contractors
What allies have started backing the gig economy tech companies in fighting legislation?
- MADD
- law enforcement
- Flexible Work for New York
- bars
- breweries
- Chambers of Commerce
NPR | Uber, Lyft, Postmates Refuse To Comply With California Gig Economy Law
By the Numbers. Tax Revenue from Sports Betting in the South
Where: Mississippi
How long has sports betting been legal in MS? 18 months
What has revenue looked like?
- $59.6 million in tax revenue
- $526.3 million wagered
- 8% to the state
- In 2019, that was $3.56 million in tax revenue
- 4% to local governments where casinos are located
- In 2019, that was $1.78 million
The 2017-2018 legislation: House Bill 967 (2017 | MS)
Mississippi Today | Mississippi’s gamble pays off; Supreme Court strikes down sports betting ban
The Dispatch | Going all in: 18 months after legalization, sports betting brings big bucks to Mississippi
Funding Local Pensions with Marijuana Revenue
Where is this unfolding? South Beloit, Ill
What does the mayor look to fund with marijuana revenue?
- firefighter and police pensions
- pave some cracked streets
Estimated revenue for the little town? $1 million annually
Wall Street Journal | Is Your City’s Pension Fund a Little Short? Marijuana Might Help
Marijuana State Tourism Revenue
Where: Illinois
Why is a Governor talking about state revenue from marijuana tourism? Illinois recently legalized cannabis while neighboring states, Indiana, Iowa, Missouri, & Wisconsin have not
When did the Governor say this? In the 2020 State of the State
What else did he say about legalization?
- 63,000 new jobs
- new opportunities for entrepreneurs
- new opportunities for those from communities that have been left behind
- a second chance to hundreds of thousands of people who had a low level cannabis conviction or arrest on their record
Chicago Business | Pritzker’s State of the State address: Full text
+1 State Pension System Divestment from Coal
Last statewide pension system looking to divest from coal: New York State Common Retirement Fund
Who is pushing divestment? lawmakers and advocates
The legislation: Fossil Fuel Divestment Act (S.5873/A.8011-A)
Background: the Pension system CIO opposed it in 2019. The New York Comptroller supports it.
San Francisco Chronicle | New York pension to coal firms: Evolve or we’ll divest
12 States with Elected Insurance Commissioners?
Florida may become the 12th state to make its Insurance Commissioner a statewide elected official
The legislation: SJR 1460 (2020 | FL)
+1 Red State Tries a Consumption Tax
Where: Nebraska
What is the tax proposal? LR300CA (2020 | NE)
- Eliminate the state’s property, sales and income tax system
- Adopt a constitutional amendment with a single-rate consumption tax
What would the consumption tax apply to? new goods & services
Who is backing this? Republicans who want to think “outside the box” to make the state the #1 state for business
How many other states are considering consumptions taxes in 2020? 9 including Alabama
Lincoln Journal Star | Surprise plan would replace state tax system with consumption tax
Lege TREND. Gas Tax Increases Back in Full Force in 2020
Where: Wyoming
What: HB 63 (2020 | WY)
How will HB 63 in Wyoming change its current gas tax?
- Increase the tax to 27 cents from 24 cents
Are the revenues dedicated? Yes, constitutionally to costs of construction, maintenance and traffic enforcement of Wyoming Highways, roads, and streets.
KGAB | Bill To Increase Wyoming Fuel Tax To Be Proposed In Legislature
3 Arguments that Sports Betting Increases State CyberSecurity Risks
- Cyber vulnerabilities increases exponentially during major sporting events like the Super Bowl
- Online Gaming has to be treated, legislatively & regulatory, separately from traditional gaming because of the data
- As the industry grows, so do cyber threats
Legal Gambling & the Law | Cyber Security Threats May Increase Due To Sports Betting Expansion
Governments + Cryptocurrencies
Current list of government central banks considering implementing a cryptocurrency:
- Bank of England
- Canadian central bank
- Japanese central bank
- Swedish central bank
- Swiss central banks
New Caucus. Gaming Caucus.
Where: Congress
Who: Republicans are establishing the Congressional Gaming Caucus
Why: “the gaming industry helps create jobs and drives economic growth in our communities.“
What issues will it focus on:
- Anti-money laundering compliance
- Responsible gaming
- State regulation of gaming, including sports betting
Play Pennsylvania | PA CONGRESSMAN RESCHENTHALER REVIVES CONGRESSIONAL GAMING CAUCUS
Why is Texas 4th from the bottom on corporate taxes?
- gross receipts tax in Texas is economically problematic
- impose taxes on intangible personal property
- tax treatment of net operating losses
Talking Points from Republicans Supporting State Gaming Laws.
- “protect Michigan consumers”
- “modernize the state’s gaming laws”
- constituents “will no longer have to settle for traveling to other states or playing through risky, offshore operators.”
- “Our students and schools will have more revenue because of these reforms — without raising general taxes”
- “competitive tax rate and regulatory framework “
- “will improve essential public services without asking Michigan taxpayers to pay more at the gas pump or grocery store.”
2 Ways Colorado Changing Marijuana Regulation
- Billboards
- new rules will permit billboards with distance requirements
- distance requirements call for 500-feet billboard buffer from schools, places of worship, and public playgrounds
- Advertising
- rules will begin to parallel alcohol regulations
12 Days of Cannabis Revenue in Illinois.
Total tax revenue in 12 days from cannabis sales: $19.7 million
Total cannabis transactions in 12 days: 495,385 transactions
How is the tax revenue dedicated?
- 25% of cannabis sales tax revenues will support the Restore, Reinvest and Renew (R3) program
- to fund economic disinvestment, violence & historical overuse of the criminal justice system
KHQA | Illinois generates nearly $20M from adult-use cannabis sales in first 12 days of new year
Economic Development Negotiations. Cover Employee Salaries?
Which economic development deal included an offer for a government to pay salaries? Amazon and NYC negotiations
Which salaries were to be covered by the economic development deal? 25% of some graduates’ 1st year salaries
What was the government goal of paying salaries? To help Amazon reach diversity goals
Wall Street Journal | New York Dangled Extra Incentives in Initial Bid to Lure Amazon HQ2
Top 15 Issues for Legislatures in 2020
- Abortion
- Climate
- infrastructure hardening
- Funding to mitigateclimate-related problems
- Criminal Justice Reform
- “ban the box” laws and policies that stop job application forms that ask for a yes or no answer about a prior criminal record
- Election Security
- stop the hackers
- Health Care
- rural hospital closures
- pharmaceutical costs/opioid crisis
- Highway Funding
- gas taxes. repeal of EV credits. how do we pay for underfunded road maintenance?
- Housing
- Pre-emption by states to limit what a city can do or dictate policy
- Immigration
- no federal action, means states are clamoring
- Net Neutrality
- 34 states have introduced net neutrality bills after Trump FCC repeal of net neutrality
- Pensions
- funding rations, funding ratios, funding ratios
- Pre-emption
- block local governments from having single-family zoning regulations in place
- Zoning regulations impact short term rentals and multifamily housing
- Quelling Recession Fears
- Whether to spend down state savings accounts
- Redistricting
- Bonjour, Census
- Vaping
- 200 municipalities have banned flavored e-cigarettes
- Workforce
- Minimum Wages
- Defining Gig Workers as Employees/Independent Contractors
3 New Gig Labor Legislative Efforts
What 3 jurisdictions could follow California’s footsteps to classify gig workers as employees and not independent contractors?
- New York
- Utilizing a coalition of labor experts including: unions, legal aid, and legal think tanks
- Assembly Bill 8343 (2019-2020 | NY)
- New Jersey
- Illinois
Is there a revenue connection? Yes, unemployment taxes paid to the state.
Politico | Coalition takes shape in New York to challenge gig economy’s business model
20 States Approve Sports Betting.
Which was the 20th state? Michigan
Did Michigan approve more than sports betting? yes, it also included online gaming and fantasy psorts
How was the legislative package organized?
- Sports Betting HB 4916 (2019 | MI)
- Online Gambling HB 4311 (2019 | MI)
- Fantasy Sports HB 4308 (2019 | MI)
13 states currently offer sports betting:
- Nevada, Delaware, New Jersey, Rhode Island, Pennsylvania, New York, West Virginia, Mississippi, Indiana, Iowa, Arkansas, New Mexico, and Oregon
7 states have enacted legislation: New Hampshire, North Carolina, Tennessee, Illinois, Montana, Colorado, the District of Columbia, and now Michigan.
The tax rates:
- 8.4% at tribal sports betting
- Detroit’s will be taxed at 11.75% due to the city’s mandatory 3.25% add-on tax on all forms of gambling
Casino.org | Michigan Becomes 20th State to Pass Sports Betting Regulations
TX Attorney General Opinion. Fees Yes. Taxes No. Local Dam Fees.
In Opinion KP-0283 fees may be collected by the Guadalupe-Blanco River Authority
What question is this opinion answering? Whether the Guadalupe-Blanco River Authority has authority to impose fees or to by election establish a taxing district to fund the replacement, operation, and maintenance of dams.
What justifies the River Authority’s fees?
- The enabling legislation for the River Authority
- Limits revenue to that revenue reasonably needed for regulation, otherwise courts will find the revenue to be from a tax
Can tax revenue be passed from a separate special district that can tax? With constraints, probably yes
- If the special district that taxed includes “safeguards in its contract to prevent concerns that the transfer amounts to an impermissible lending of credit”
- The special district cannot be created by the River Authority under its current statutes
Law 360 | Texas AG Says River Authority Is Allowed Dam Fees, Can’t Tax
Local TREND. Cities & States Funding College Savings Plans. Anatomy of the plan in Colorado.
What entity will control the state funded college plan? Colorado created a non profit, CollegeInvest
How much is the state investing per Colorado Child? $100
Is CollegeInvest in Colorado limited to 4 year colleges? No, funds can be applied to vocational training, community college, and graduate programs
Which kids are included in Colorado?
- kids born in Colorado
- proof of a Social Security number or tax ID number for both the baby + 1 of their parents or legal guardians
Who else is following suit?
- St. Paul, Minnesota
- Massachusetts
- Rhode Island
Education Dive | More cities and states are paying into children’s college savings plans
Legislative TREND. Tightening Tourism via Helicopter
What legislative body looks to limit helicopter tourism? Congress
What will the legislation do?
- impose strict regulations on commercial tour operations
- prohibit pilots from also serving as tour narrators
- Require that tour flights fly above the 1,500-foot altitude over actual ground at all times
- Noise limitations over residential areas
- Prohibit tour flights over military installations, national cemeteries, national wilderness areas, national parks, and national wildlife refuges
How much economic impact does helicopter tourism have in Hawaii?
Hawaii Helicopter Association estimates that air-tour operators annually contribute $150 million to the state’s economy
Congressman Case Moves to Impose Strict Regulations on Commercial Air Tour Operations
Washington Post | Police: All 7 killed in Hawaii tour helicopter crash
Lege TREND. Using Film tax Credit to Promote Women in Entertainment.
Where: New York
What: Assembly Bill 6683 (2019 | NY)
What does the Television Diversity Tax Credit Bill do?
- Allows for a $5million tax credit
- Qualifying projects can receive up to 30% of the qualifying salaries and fees paid
- for hiring minority or female TV writers or directors
- who work or reside in New York
- Tax credit caps:
- $150,000 in salaries or fees per person
- $50,000 for such fees or salaries for work done for a single episode of television
- Creates a study to demonstrate the underutilization of minority and women directors and screenwriters who will benefit from this tax credit
The Hill | Amy Schumer, Samantha Bee among 400 writers urging Cuomo to sign TV tax credit bill
Lege TREND. New Way for States to Limit City Revenue.
Where: Florida
What: Limit the permitted uses of revenue from municipal utilities to prevent utility revenue from being used in the general fund
Which taxes would cities then rely on the continue a revenue status quo?
- Raise property taxes
- Raise sales taxes
WUFT | Utilities Revenue Bill In Florida Legislature Threatens City Budgets Statewide
TRS New Executive Panel
Adieu to a single leader of Texas Teacher Retirement System. TRS will now be led by an executive committee including:
- CIO Jase Auby
- COO Sylvia Bell
- Chief of Staff and Chair of Internal Investment Committee Katy Hoffman
- Head of Private Markets Eric Lang
- Head of Public Markets Dale West
Pensions & Investments | Texas Teacher fund to be led by executive panel
Lege TREND. Fantasy Sports Advertising Limitations.
Which state is implementing new advertising rules on fantasy sports? New Jersey
When did New Jersey permit fantasy sports? 2017
What advertising limitations are placed on fantasy sports?
- No ads at sports venues used for elementary and high school sports activities
- Ads at college sports events are ok
Chicago Tribune | Rules governing fantasy sports operations go into effect
3 Reasons Supporting Statewide Ride Share Taxation
Who is offering the support for statewide ride share taxation? R Street institute
What arguments support statewide ride share taxation?
- Rides don’t start and stop at city limits which makes municipal taxes hard to collect & allocate
- Its complicated for companies to comply with multiple tax systems
- Statewide taxation “limit[s] the economic damage from any taxes that states allow”
Is there an exception to statewide taxation? Yes, taxes and fees levied by cities to address congestion
Streamlining Online State Services. Texas 2.0
What is the new project called? My Government My Way
How did the previous Texas online government services portal, Texas.gov, function?
- 260 million online transactions
- across 30 state agencies
- linked by 5 different portals
What is the ROI on the new platform?
- 6% increase in online drivers license transactions
Expand use of 529 Savings Accounts to Workforce Development
Where: Congress
The bill: Invest in Tomorrow’s Workforce Act H.R. 654 (116th Congress)
What would 529 savings pay for under this legislation? workforce training & credentialing programs
CBS 19 | Bill to let students use 529 accounts for training, credentialing programs
New Report. Climate Change Harming Pension Returns.
The report: California Public Employees’ Retirement System first climate change risk report
What did the report find? 20% of CALPERS investments negatively impacted by climate change
Why did CALPERS issue this report? Required by the California legislature in 2018
What 4 sectors are economically impacted?
- energy stocks (including utility holdings) 8% of CALPERS equity
- materials and building sector 6 % of CALPERS equity
- transportation 3% of CALPERS equity
- agriculture, food, and forestry 3% of CALPERS equity
Chief Investment Officer | One-Fifth of CalPERS Equity Portfolio Faces Climate Change Risk
Another State Adding Online Gaming
The state: Michigan
The key to passage of the legislation: holding school funding harmless so that any revenue hit to lottery funds from online gaming does not reduce school funding
The tax rates:
- 8.4% for sports betting
- 20-28% for internet poker and other games played online
Woodtv.com NBC 8 | Online gaming bills closer to passing in MI Legislature
+1 State Considering Gas Tax Indexing
Where: Virginia
What is Virginia’s current gas tax? 22 cents, the 12th lowest of any state
What are elected officials saying?
- Funding increases and sources should be shared among all types of transportation
- A tax increase should not effectively limit one type of transportation
- A miles traveled fee could be a better route for the state than a gas tax increase
WTOP | Virginia considers gas tax hike to cover growing transportation needs
New Cannabis Trade Association
Who: The Association for the Cannabinoid Industry
What are the association’s tenets?
- legal compliance
- quality control
- offering a a kitemark that will appear on products which meet its standards and assurances on product quality, efficacy and safety to build consumer trust
Local Government TREND. Dedicated Cannabis Taxes.
Where: Evanston, Illinois
What: Proposes to dedicate its tax on cannabis to create a reparations fund for its African American community
How will the dedicated fund operate?
- estimated annual revenue of $500,000 – $750,000
- Cap of $10 million over the next 10 years
- Workforce skills & home downpayment funds will be available to all of the city’s black residents
The Telegraph | US city to pay reparations to African-American community with tax on marijuana sales
Business TREND. A Venmo-like App for Cannabis
When cannabis companies can’t bank in traditional banks, the industry needs alternatives.
Who: Hypur, the company behind the Venmo like app
How it works:
- Customers enter a code at the dispensary to transfer funds from their checking account
Concerns about this mode of payment:
- Hypur charges 3% per transaction, higher than the 1-2% of credit cards
- No federal oversight
- Privacy concerns
Columbus Dispatch | Arizona company starts Venmo-like service to buy medical marijuana
Local Government: Smart City Coordinator
Where: Seattle
What does a smart city coordinator do?
- how that data is going to be used
- how city data is going to be protected
- how the city can innovate
Workforce Education Savings Account
Where are they talking about this? West Virginia
Why? Laborers should be able to have tax benefits for funds used to acquire training, licenses and tools
Who are we talking about?
- tradesmen
- truck drivers
- laborers
Who is promoting this new workforce tax benefit program? Republican Candidiate for West Virginia State Treasurer
The Inter-Mountain | State needs a savings account option for tradesmen
Sports Betting State Revenue
What state makes the most revenue from sports betting? New Jersey
How much was wagered by state?
- $4.6 Billion in New Jersey
- $6.6 Billion in Las Vegas
How does New Jersey end up with more revenue?
- A higher tax rate 8.5% for in person betting, and 13% for online betting, while NV taxes all sports betting at 6.75%
- 80%+ of sports betting in NJ is online
What does sports betting revenue look like for states from June 2018 to September 2019?
- $36.12 M for New Jersey
- $27.51 M for Nevada
- $19.76 M for Pennsylvania
- $9.53 M for Delaware
- $6.1M for Rhode Island
- $4.7 M for Mississippi
- $2.56 M for West Virginia
- $0.81 M for Indiana
- $0.48 M for Iowa
- $0.35 M for New York
- $0.04 M for Arkansas
Market Watch | This state makes the most tax revenue from sports betting — and it’s not Nevada
Institutional Investors Lead ESG Investing. New Study
Who conducted the study? Willis Towers Watson’s Thinking Ahead institute
Why do institutional investors, like state pension funds lead the way in ESG investments?
- Institutional investors face pressure from the public & have sustainable investment strategies
- Institutional investors success is contingent on adapting to sustainable investment strategies
Chief Investment Officer | Large Asset Owners Lauded for Pushing Sustainable Investing
State Need Revenue? Anatomy of State Plan to Recoup Ride Share Company Revenue
Where: New Jersey
What? NJ looks to collect $640Million from Uber for misclassifying drivers as independent contractors
Does this seem familiar? Yes, similar labor law approach was successful in California
What are the arguments for the $640 Million taxes and fine for Uber?
- taxpayers foot the bill for unemployment or disability insurance when independent contractors file for benefits
- Otherwise, honest business owners are at an unfair disadvantage
Burlington County Times | NJ seeks $640M from Uber for misclassifying workers
Local TREND. Wage Setting Ordinances for Ride Share
Where: Seattle
What? The Seattle Mayor Jenny Durkan’s “Fare Share” plan creates a study to determine a fair wage for ride share. Recommendations are due spring 2020.
Who is conducting the study? 2 economists who did a similar study for NYC
What data will the economists look at? driver earnings, work time, & expenses to calculate a minimum wage
KOMO News | Seattle begins effort to establish minimum wage for Uber, Lyft drivers
New Kid on the Block. Austin TX Procurement Software
Where is the software being used? State of Oregon
What is the Austin, TX based company? Periscope Holdings
How does periscope change state procurement?
- BuySpeed e-procurement system
- standardize the procurement process across all state agencies
- automates some of the procurement process
- tracks & manages government purchases of goods and services
Governing | Oregon to Launch Statewide Procurement Marketplace in 2020
3 Failings of a State’s Pension Consolidation Plan
Where: Illinois
What: Illinois looks to consolidate 650 suburban and downstate police and fire municipal pension funds
How much will the state save? Estimated savings to the state is $850 million to $2.5 billion over 5 years
3 concerns over the consolidation:
- savings will be overwhelmed by the weaknesses of the pension systems
- there are no reforms to contributions or distributions
- Moody’s Investors Service has warned that without major cuts, tackling the state’s pension debt is futile
Chief Investment Officer | Plan to Merge Strapped Illinois Local Pension Plans Raises Doubts
Local TREND. Cities Partner to Fund 529 plans for Young Students.
Where: Miami
What: Kindergartners attending public schools in the City of Miami are eligible for a savings account with a deposit of up to $50
Who is Miami partnering with? Future Bound Miami
News 7 Miami | Thousands of Miami kindergartners will now be eligible for savings accounts
State College Fund Partnership.
Where: Oregon
Who is partnering? BottleDrop and the Oregon College Savings Plan
What will be the result? Funds from collecting cans and bottles for recycling can be automatically deposited into a college savings plan
Salem Reporter | Oregon now lets you turn empty bottles and cans into college savings
Sustainable Investing by the Numbers.
50% decrease in skeptics of sustainable investing in 3 years
11% are skeptical this year, down from a high of 20% in 2017
75% Three-quarters of investors expect sustainable investing to increase in importance
84% of investors in Europe believe sustainable investing will increase in importance
Who is behind the numbers? Schroders’ Institutional Investor Study 2019 involving managers of $25.4 trillion in assets
Chief Investment Officer | Sustainable Investment Skeptics are Becoming Believers
Regulatory Issue. Cannabis Industry & Tax Payments. Regulatory Shutdown of an industry.
Where: Missouri
What: Missouri Department of Health and Senior Services
Proposed rule from the MO DHSS: “…shall pay all fees, penalties, or taxes due to Missouri state governmental agencies via any payment method normally acceptable to those agencies other than cash.”
Anatomy of a Sports Betting Constitutional Amendment
Where: California, 1 of 2 “holy grails” in sports betting frontier
The proposed legislation: SCA 6 (2020 | CA)
Voting would occur: November 2020
What’s the key language? “(h) Notwithstanding subdivisions (a) and (e), the Legislature by statute may authorize and provide for the regulation of sports wagering.“
2019 Elections and Sports Betting
- COLORADO legalized sports betting 50.62% to 48.38%
- revenue will fund WATER PLANNING
- New Hampshire 5 OF 9 cities legalize sports betting
- Legislation allows the NH lottery to operate sports betting retail locations
Sports Handle | Colorado Voters Legalize Sports Betting
Concord Monitor | 9 N.H. cities to vote on whether to allow sports betting
Legislative TREND. Sports betting + Fantasy Sports
Where: Michigan
What is the legislation?
- HB 4916 (2019 | MI) , HB 4917 (2019 | MI) , HB 4918 (2019 | MI) Sports Betting Act
- HB 4308 (2019 | MI) Fantasy Sports
- HB 4323 (2019 | MI) Prohibiting Offshore Online Betting
How will the sports betting framework function?
- Michigan Gaming Control Board will regulate internet gaming
- Casinos prohibited from offering online games that directly compete with the Michigan Lottery
- $80-$100 Million in estimated annual tax revenue
- 8.75% tax rate on sports betting
- 4%-23% rate on online betting
- 19% tax rate for existing casino gaming
Texas New Statewide Executive Director for Economic Development
Who: Adriana Cruz
What’s her title? Executive Director of the Economic Development and Tourismdivision within the Office of the Governor.
What is her background?
- Most recent gig: President of the Greater San Marcos Partnership
- Vice President of Global Corporate Recruitment for the Austin Chamber of Commerce
- B.B.A. in Marketing from the University of Texas at Austin
When does she start? December 5, 2019
Governor Abbott Names Adriana Cruz Executive Director Of Economic Development And Tourism
Tax Free Medical Cannabis Donations
Where: California
What: Starting March 1, 2020, up to $ 53 million “compassionate” medical cannabis donations will be recognized in California
How: SB 34 (2019 | CA)
Why: Medical marijuana advocates recognized an oversight in the state’s medical marijuana laws that did not allow for tax free gifting for patients of need
Leafly | Gifting cannabis to the terminally ill becomes tax-exempt in California
Business TREND. Workforce Development Opportunity in your state.
What: Lyft is partnering with nonprofits to offer rides to job interviews, job training & the first 3 weeks of new employment
Who are Lyft’s nonprofit partners?
TREND. Gig Economy. Employee Classification Constitutional Amendments.
Where: California
Who is championing a constitutional amendment to define gig workers? Uber, Lyft, Door Dash
Why? In response to the Legislature enacting a law that classifies the gig workers as employees
Is the proposition more than this law doesn’t apply to our companies? Yes, it will offer gig workers:
- Guarantee that drivers would make 20% more than the minimum wage
- 30 cents per mile for expenses such as gas & wear and tear
CNN Business | Uber, Lyft, DoorDash unveil ballot measure to fight California gig economy law
Houston Chronicle via AP | Lyft, Uber will ask California voters to block employee law
City Adopts User Fee
Where: Wheeling, WV
What’s a User fee? $2 weekly tax on people who work within the city limits
Why a user fee? A method to fund a $21 million public safety building which failed to gain voter approval
How would the user fee be implemented?
- Employers will take the fee out of paychecks
- Self-employed individuals will make quarterly payments
- $1 of the fee will fund the public safety building
- $1 would go toward infrastructure
The Intelligencer | City Officials Talk User Fee, Public Safety Building
Faith Based Tax Credits & U.S. Supreme Court
Hello to new legislation from all State Legislatures once this case gets decided.
What’s happening? The US Supreme Court will decide a case from Montana on educational savings accounts/vouchers that permit tax dollars to be used for religious, private schools
What’s the issue the court will decide?Whether the US Constitutional permits religiously neutral student-aid program simply because the program affords students the choice of attending religious schools.
How many states could this impact? 37 states
UPDATE. Pension Divests From Private Prisons
Which pension system? CALPERS
Who else has divested from private prison operators?
- As of November 2018, California State Teachers’ Retirement System (CalSTRS) divested $13.7 million
- Bank of America
- Wells Fargo
The impetus: Operation of ICE facilities in Dilley & Karnes, Texas
+1 State Setting Up College Savings Plan for Kinder Students
Where: Oregon
What: Oregon is setting up college savings accounts with $25
How have Oregon universities responded? Willamette University is matching investments made by students before they start high school up to $40,000
KATU 2 | Willamette University offers to match savings for Oregon’s Kinder Grad participants
ISD partners with Bank. Sets of Savings Accounts for Students.
Where: Feria ISD, Texas
Who: Students in Kinder and 1st will receive college savings accounts, set up by the ISD for the students
CBS 4 Valley Central | La Feria ISD to provide savings account for students
+1 State. Fair Pay for NCAA Play Legislation.
Which state followed California’s lead? Florida
What does Florida’s NCAA fair pay for play bill look like? HB 251 – Students Participating In Intercollegiate Athletics (2019 | FL)
Are other states considering similar legislation? Yes, South Carolina and North Carolina
UNF Spinnaker | Florida legislature proposes bill allowing athletes to profit
Lege TREND. Adding racial impact statements to bills in a Red State.
Where: Nebraska
What: adding racial impact statements to fiscal notes
Is this a new thing? No, Iowa started minority impact statements in 2008
Why did Iowa add racial impact statements? A response to prison populations that were heavily black and Latino
Lincoln Journal Star | Legislative Rules Committee considers racial impact statements for bills
State Contract Canceled for Statements by Contractor. Hello, words matter. Be kind.
Which state ended a state contract over something a contractor said? Michigan
What contract? A $600 M investment contract for a state pension system
Who said what and where? CEO made “completely unacceptable” comments at an investment conference in Tiburon, CA. His comments included references to dropping acid & his moral opposition to charities.
What did the pension system say? “There is no excuse to not treat everyone with dignity and respect.”
AP via Star Tribune | Michigan ends pension contract over investor’s comments
Au revoir Banning Plastic Bags. Bonjour Taxing Plastic Bags.
Where: Sweden
What’s the background: Swedish retailers have charged for plastic bags for decades. Charging 1-2 SK (50 cents approx.)
What’s the proposed tax?
- 3SK tax on single use plastic bags
- 0.3SK tax on fruit & vegetable plastic bags
- tax would be paid by those who produce or import the plastic bag
12th State to Legalize Cannabis Tax Plan
Which state wants to the 12th state to legalize? New Mexico
How did the proposal for legalization come to fruition? A stakeholder group formed by the Governor
What is the tax revenue proposal for legalized cannabis?
- An average tax rate of 17%
What other requirements would be implemented?
- testing and labeling requirements
- state-level licensing
- Revenue would fund the state’s medical cannabis program
- Local governments will determine where cannabis dispensaries are located
Pitfalls legislation in New Mexico looks to avoid?
- Over taxation that drove growth in the blackmarket
- In cases of shortage, medical patients get preference for purchasing
+1 TX City Short Term Rental Tax
Where: Corpus Christi
What: a short term rental tax for rentals booked through short term rental sites like Airbnb and Homeaway
How would the tax be collected?
- added to a guest’s bill
- paid directly to the city by the rental sites
KRIS 6 News | City Council to vote today on vacation rental tax increase
Lodging Tax Revenue Conundrum. Double Taxation on Short Term Rentals.
Which state is considering statewide short term rental law? New York
What do the bills look like? AB 2928 (2019 | NY)
Where does double taxation come into play?
- Currently local governments have imposed local lodging taxes and permit fees for short term rentals
- Does a statewide tax system replace existing local taxes? Or, is statewide taxation system on top of existing lodging taxes?
Hudson Valley 360 | State eyes regulation of short-term rentals
Lege TREND. Tax Deductions for Cannabis industry
Where: California
What tax breaks?
- 3 year reduction of the cannabis excise tax to 11%
- suspend the flower cultivation
The legislation: AB 286 (2019 | CA)
Why the tax breaks? To allow legal industry to overtake the blackmarket
Prisons and Drones. An economic threat to prisons?
Where: Virginia
How many drone sightings carrying contraband into prisons are we talking about? 33 in January 2018 alone
Do Virginia’s drone laws limit flight over prisons? No
Which states have banned drones over prisons? California, Florida, Kentucky
Governing | Drones Dropping Off Packages Pose New Threat to Prisons
Local TREND. Prohibit the Use of Self Deleting Apps by city officials
Where: Missouri
What are self deleting apps? Apps that delete information
Why are self deleting apps a problem?
- The auditor say they fly in the face of open government & transparency
- The State Records Commission has new guidelines related to electronic communications that prohibit self deleting apps
Democrat News | Auditor calls on local governments to ban use of self-deleting applications
New Support for Cannabis Legalization
Where: Oregon
The new group leaning to support: Oregon Teachers Union
The decriminalization proposition: Oregon Votes
Why are the teachers backing decriminalization?
- access to affordable and effective treatment
- support services and stable housing
The catch in cannabis tax revenue appropriations:
- transfer of all revenues in excess of $11,250,000 ($11.25 million) quarterly into the new drug treatment fund
Examples of Cities Use of Cannabis Tax Revenue.
Grover Beach, California
- Cannabis revenue makes up 10% of its revenue base
- Funding:
- law enforcement
- fire personnel
- pedestrian safety
- parks
- public service
KSBY | $950,000 from Grover Beach cannabis tax spent on police, fire and parks, city says
Lee, Massachusetts
- $140,000 in revenue for the first 3 months, for a town with an annual budget of $25M
- Benefits to the city:
- Jobs
- Strengthened the local economy
3 Ways Banking Regulations Not Keeping Up with Cannabis Legislation
- State banking regulations are not keeping up with federal changes in cannabis laws
- States struggle with how to test hemp for THC levels and that leaves the industry without clear banking guidance
- Unclear regulatory structure & guidance keeps banks and credit unions from servicing the hemp industry
Lege TREND. Local Public Banks. A Cannabis solution?
Where: California
The legislation: AB 857 (2019 | CA) signed by Gov Newsom
What are the bill’s policy goals?
- Make tax dollars work for our communities
- Tax revenue should serve a public purpose
What limitations are placed on local public banks?
- 10 public banks maximum
- 7 year authorization
Opposition: California Banker Association
+1 Pension Divestment from Private Prisons
Where: Pennsylvania
What sparked the PA pension divestment from private prisons?
- negative press for the private prison firms
- whether teachers and law enforcement should financially benefit from prisoner telephone call proceeds
Philadelphia Inquirer | PA’s millions: Pensions split on private-prison protest
Lege TREND. Student Athlete Compensation.
Where: California & Alabama
What: legislation that allows student athletes to receive compensation for endorsements for their likeness and allows for contract limitations between players and universities
The Opposition: NCAA & quietly universities who lose the revenue
Washington Post | California did the right thing. Don’t buy into the NCAA’s propaganda.
Local TREND. Pilot Project for Polite Tourism.
Where: Kyoto, Japan
What is this pilot program for politeness? A smartphone update with proper etiquette and protocol in popular tourist spots
How will Kyoto measure the effectiveness of the pilot program? Footage from security cameras looking for offenders who walk and smoke, stop in the middle of the road, or take pictures of geishas without permission
Time Out |Tokyo | Kyoto starts pilot project to promote polite etiquette among tourists
Local TREND. City Tackles Homelessness with $40M in private funds
Where: Anchorage Alaska
Who contributed $40M in private funds support?
- Providence Health & Services – $15 million over five years
- Weidner Apartment Homes – $10 million over five years
- Premera Blue Cross Blue Shield – $5 million over three years
- The Rasmuson Foundation
The strategic plan to curb homlessness will be a partnership between these entities, the city, and local non-profits.
KTUU | Private funders donate $40 million towards solving Anchorage’s homelessness problems
Pension TREND. ESG Investment Prominence.
Where: UK
What: UK’s Pension Minister is establishing ESG investment criteria for pensions to focus not only on the sustainability and ESG metrics of investments but to also consider the pension members ethical and environmental views
How does this impact returns?
- ESG is no longer about just being good to the environment
- ESG is talking about the risks facing a portfolio
- An ESG conversation is also necessary to protect a pension audit trail
IPE | UK: ESG moves up the trustee agenda
How a State Rolled Out Online Sports Betting with no Specific Legislation.
Where: Oregon
What agency will oversee online sports betting in Oregon? Oregon Lottery Commission
How does the Oregon Lottery Commission have this authority? The Lottery Commission is delegated broad authority to decide what games occur in Oregon
Is there retail sports betting? Not yet. Online sports betting contract was awarded prior to the NFL season
Must people register in person?No, people can register online to use the online sports betting
European Gaming | GAMBLING IN THE USAOregon Lottery to Launch its Online Sports Betting Game in October
Anatomy of State Procurement Plan.
Where: Texas
What’s the timeline for agencies to complete this procurement plan? Must to be to the Comptroller by November 30, 2019
What information goes into a state agency procurement plan?
Texas Comptroller of Public Accounts
Statewide Procurement Division
FY20 Agency Procurement Plan Template
Instructions:
Please complete the information below and submit it with the requested attachments to procurement.plans@cpa.texas.gov by November 30, 2019.
General Information
Agency Name:
Agency Number:
Procurement Director Contact Information
Name:
Phone Number:
E-mail Address:
Purchasing Capacity Assessment
Dollar value of agency delegated purchases for FY19:
Number of purchasing FTEs:
Automated purchasing tools used by the agency (if applicable):
Please attach the following:
- Copy of agency’s purchasing and contract management procedures which include protest procedures developed by the agency.
- Credit card procedures regarding the issuance and security of payment cards and the use of those cards by the agency’s employees.
- Attach or provide links to any SAO audits of purchasing and contract management functions for FY19-FY20
- Attach or provide links to any Comptroller post payment or procurement audits for FY19-FY20
Certified Procurement Professionals
Number of certified purchasing FTEs:
Number of certified contract management FTEs:
Please attach the following:
- Name, title and certification number for each purchasing FTE
- Name, title and certification number for each contract management FTE
Training Projections for the Fiscal Year
Number of seats needed for CTCD certification courses for FY20:
Number of seats needed for CTCM certification courses for FY20:
Delegated Purchasing Assessment
Please list the names of personnel with delegated signature authority for proprietary justifications:
Please complete the table below with the requested information on your agency’s five delegated purchases anticipated to have the highest expenditure for commodities or services (excluding professional services) not available on an existing contract through CPA or DIR for FY20.
| Delegated Purchases | Est. Value FY20 | Previous FY Value same/similar purchase: | Name of current vendor: | Has the agency looked for the item on CPA or DIR contract? (Y/N) |
Drafting Error in Medical Marijuana Law Allows Other State Residents to Buy
Where: New Mexico
What drafting error occurred in New Mexico’s medical marijuana bill that allows residents of other states to partake in the program? The bill dropped a residency requirement for purchase
Who backed the lawsuit to enforce that medical marijuana in New Mexico be open to nonresidents? A Medical cannabis entrepreneur
AP | Judge says nonresidents can obtain New Mexico medical pot
Local Jail Revenue. Texas Attorney General Opinion.
Who is requesting an Attorney General Opinion? Washington County, Texas
How do I track the opinion process? RQ-0309-KP via Pending Opinions
What question does Washington County want answered? Is revenue from allocating money from the Inmate Trust Fund to a PIN debit system to pay for phone time at the request of an inmate to be credited to the commissary account or to the general fund ofthe county?
Why does this matter? The phone funds either can be used for other purposes in the general fund of a county or for purchases within the jail to fund the operator of the jail
+1 New State Travel Ban
Where: California
How many states are on California’s travel ban? 11, including Texas, Oklahoma, North Carolina, Mississippi and Kentucky
What’s the newest travel ban? Iowa
What did Iowa do to earn a travel ban? removed gender protections under Medicaid
Sacramento Bee | California adds an 11th state to its travel ban. No taxpayer-funded trips to Iowa
Divestment. State Funds. Private Prisons.
Where: California
How is the divestment being pushed legislative or regulatory? Regulatory
Which fund is being asked to divest from private prisons in 2019?
- CALPERS
- The rational: Private Prisons operate detention facilities under contracts with Immigration and Customs Enforcement
Who has divested from private prison investments? Yes, CalSTRS in 2019 voted to get divest $12 million
Sacramento Bee | Two women allege misconduct by Brough + Private prison divestment + Why veto SB 1?
Gig Economy. 2 Reasons Gov. Signed Employee Classification Bill. 2 Industry responses.
Who signed a gig employee classification bill? California Governor Newsom
What bill defined gig workers as employees and not contract workers? AB 5 (2019 | CA)
What did Governor Newsom say in support of the bill and in defiance of tech companies?
- need to create lasting economic security for the workforce
- announced stakeholder group of legislators, business and labor to support more worker protections while preserving innovation
How did industry respond?
- Lyft Agrees with Gov. that rideshare drivers want thoughtful solution balancing flexibility with earnings guarantees and protections
Gizmodo | AB5, Landmark Bill Protecting Gig Workers in California, Becomes Law
Courthouse News Service | Defying Big Tech, Newsom Signs Landmark Gig-Economy Labor Bill
Industry Targeted. Executive Orders. Vape Edition.
Who issued an executive order against the vape industry? California Governor Newsom
What does the Executive Order do?
- creates a $20 million digital and social media public awareness campaign
- Department of Public Health will develop recommendations to reduce smoking rates
- Department of Tax and Fee Administration increase enforcement of e-cigarettes
- Warning signs of the dangers of vaping
Governor Gavin Newsom Signs Executive Order to Confront Youth Vaping Epidemic
Sacramento Bee | Watch Gov. Gavin Newsom explain executive order cracking down on vaping industry
Drafting Error. Delays Weed Revenue to Cities.
Where: Illinois
What was the drafting error? Legalization begins January 1, 2020 but local tax revenues cannot be collected until Sept. 1, 2020
How do I prevent this? Hire people who watch for these mistakes.
Bloomberg Tax | Glitch in Illinois Weed Law Could Delay Towns’ Tax Revenue
Anatomy of a Historical Building Tax Credit Revamp
Where: California
What is authorizing new historic building tax credits? SB 451 (2019 | CA)
How are historic tax credits going to be administered?
- tax credit will equal 20-25% rehabilitation costs IF
- inclusion of affordable housing in the project
- or is part of a military base reuse authority
How many states offer tax credits/incentives for rehabilitating historical property? 35
KPBS | Legislature Passes Bill For Tax Credit For Preservation Of Historic Buildings
State Chartered Cannabis Banking Fails to Pass.
Where: California and Illinois
Which bill failed to pass this week? California’s SB 51 (2019 | CA)
How far did the bill move? Through both chambers but failed to final passage before sine dine adjournment for that legislative session.
Are statewide elected officials behind the passage? Yes, the State Treasurer
Marijuana Legalization: End Run Around Banking Issues. Bitcoin.
Where:
California
How do bitcoin purchases of marijuana help the economics of the industry?
- reduce transaction fees for dispenceries
- improves financial transparency
Statewide legislation for bitcoin and cannabis:
Marijuana Moment | California Lawmakers Use Cryptocurrency To Buy Marijuana From Dispensary
Marijuana Legalization baby step: Expungement
Where:
New Jersey
What happened in New Jersey?
When legalization failed, the Governor proffered legislation to expunge low level offenses
NJ.com | Murphy’s changes to bill clearing weed convictions up for vote Thursday. But no deal yet
Industry Supports Reducing Amount of Recycled Material in Glass Bottles. Read the Legislation.
Where:
California
What’s the legislation?
Which industries support reducing the amount of recycled material in glass bottles?
- Wine Institute
- California Craft Brewing Association
- Beer Institute
- California Manufacturers & Technology Association
Why does industry support this?
- Aligns with standards in Europe and other states
- reflects the Toxics Packaging Clearinghouse model
- reduces the amount of glass that goes to landfills
Woodland Daily Democrat | Legislature OK’s cleanup of glass recycling bill
TX Attorney General Opinion. What is the purchasing authority of a criminal district attorney?
The Attorney General Opinion
Who requested this opinion?
Tarrant County Criminal District Attorney
What question is answered?
Does a criminal district attorney’s office must comply with purchasing procedures and rules adopted by a county purchasing agent?
The answer: no. but there are other rules to follow:
- A county district attorney is a specialized local entity
- As a specialized local entity
- Don’t have to follow the county purchasing agent
- 2 exceptions:
- Could contract with the county purchasing agent
- Any rules that the county purchasing agent adopts under the County Purchasing Act that apply to the county, also apply to the specialized local entity
- 2 exceptions:
- Overall, Chapter 262, Local Government Code, the County Purchasing Act, applies and a specialized local entity is treated like a county
- Don’t have to follow the county purchasing agent
What does this mean?
Competitive Bidding applies
TX Attorney General Opinion. How can cities get around the TX Constitution prohibition against being paid for 2 different governmental roles?
The Attorney General Opinion:
Who requested the opinion?
The City of Ranger, TX
What is the question answered by the opinion?
“whether a city manager in a home-rule municipality may simultaneously serve as the interim or permanent police chief”
The Answer:
- Follow your City Charter & Combine the roles of city manager & police chief by city action
- Create your own loophole around the Texas Constitution
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