What is an example of a gig economy impact on state unemployment fund balances?

A chef sharing service that is being used by NYC restaurants to handle limited pool of employees

How is chef sharing impacting state unemployment funds?

Gig employees are mostly considered contract employees & thus do not pay into unemployment funds.

Donga Ilbo | ‘Chef sharing’ booms in New York as restaurants experience labor shortage

ChefShare

Where:

Wyoming

What committee?

The Legislature’s Management Council created a special committee to address negative impact of coal industry bankruptcies

What special issues will the special committee consider?

• health care benefits for employees
• funds for reclamation work at mining facilities
• ensuring wages owed are paid
• ensuring local governments receive tax revenue from mining operations

Casper Star Tribune | Wyoming Legislature creates group to tackle fallout from coal bankruptcies

Where is this an issue? Nevada

What requirements for sports betting does Nevada have? No online registration process, a person must appear in person

What are other states doing? 9 of 20 that have legal sports better permit mobile registration

How are most sports bets placed in Nevada? By mobile device

Las Vegas Review Journal | Nevada regulators may need to revisit sportsbook registration rules

What divestments have local museums made? Natural Science museums have divested from oil and gas to support climate change

What investments have museums made to local social justice reform?

• Building for the Arts and Creative Capital & NYC Inclusive Creative Economy Fund supporting low income communities
• Soils Grown Deep Foundation endowment promotes social justice and economic opportunity in arts

What is the goal? Align an institution or foundation’s investments with its values

Financial Times | Museums should lead in socially responsible investing

Where: Pennsylvania

What is the old school tax system?  land value tax from a 19th-century idea to encourage more productive use of large properties

How does a land value tax work?

• levying rates on the land itself
• no tax levy on the structures built

How does this benefit property tax bills?

• tax burden shifts from residential property owners
• homeowners tax bills cut nearly by 1/3

Governing | Leaning on the Land

Where: North Carolina

What type of legislation: An agriculture bill S315 (2019 | NC)

What is the new cannabis lingo? Smokeable hemp

What is smokeable hemp?

• smokeable hemp = marijuana
• hemp includes products includes cannabidiol, or CBD

Watauga Democrat | Smokable hemp debate fired up in NC legislature

Where: Queen Anne’s County, Maryland

What: Releasing balloons =littering, so cities look to ban the practice

How would the balloon ban work?

• except balloons that are  biodegradable or photodegradable
• except balloons released by the government, weather balloons, hot air balloons recovered after launch, or unintentional balloon releases
• maximum $250 fine

Are balloon bans happening elsewhere? YES

• San Francisco
• Baltimore
• Wrightsville Beach, N.C
• Statewide ban in California
• Statewide ban in Connecticut
• Statewide ban in Florida
• Statewide ban in Tennessee
• Statewide ban in Virginia

Are other states or cities considering it? Yes

•  New York
• Massachusetts
•  New Jersey
•  Maine
• Arizona
• New Hampshire 
• Rhode Island

Route Fifty | Why Local Governments Are Considering Balloon Release Bans

Where: Arizona

What: Arizona passed a bill to make cities pay the cost to the state of raising the minimum wage

How: HB 2756 (2019 | AZ) The administrative head of each budget unit, not later than September 1 of each year or at a later date not to exceed thirty days after September 1 if approved by the director of the governor’s office of strategic planning and budgeting, shall submit to the governor, with five copies, estimates of the financial requirements and of receipts, including appropriated and nonappropriated monies in no less detail than the state general fund, of the budget unit for the next fiscal year.  THE ESTIMATES SHALL INCLUDE A DETAILED ESTIMATE OF THE COST TO THE BUDGET UNIT IN THE NEXT FISCAL YEAR ATTRIBUTABLE TO A COUNTY’S, CITY’S OR TOWN’S ESTABLISHMENT OF A MINIMUM WAGE IF THAT MINIMUM WAGE EXCEEDS THE MINIMUM WAGE ESTABLISHED BY THIS STATE PURSUANT TO SECTION 23-363.  The estimates shall be on the forms and in the manner prescribed by the governor with explanatory data that may be required, together with additional information the head of the budget unit desires to submit.  The estimates submitted shall bear the approval of the administrative head of the budget unit.

Arizona Repulic | New law would make Arizona cities pay for raising the minimum wage

Where: Arizona

Who studied the numbers? The Goldwater Institute, the impetus for the ESA program

What numbers are the Arizona Education Savings Account reaching?

• 6,423 participating students in 2019,
  • up from 5,042 in 2018
  • 3,360 in 2017
  • 144 in its first year, 2012
• award amount averages $6,148 per pupil in 2019 for non-special needs participants
  • $10,120 average cost for an equivalent student in public schools
• over $4.2 million per year in education dollars back will be redirected to other public school pupils

SB 1431 (2017 | AZ) , 2017 statewide expansion of ESAs

Proposition 305 (2018 | AZ) to overturn SN 1431, which failed to pass

KPVI | Study measures success of Arizona’s education savings accounts

Where are the roots of this US Supreme Court case? Montana

What happened in Montana?

• Montana’s State Supreme Court voided a law that allows for small tax credits by donating to school scholarship foundations

How many states have similar provisions to Montana’s constitution that voided its law? 37

The Complete Colorado | Natelson: Supreme Court to review anti-school choice provision common in state constitutions

Where: San Antonio TX

Who: San Antonio Chamber of Commerce

What are their legislative goals:

• new funding mechanisms for transportation projects
• aid to our military installations
• workforce development partnerships that promote postsecondary and career readiness
• evaluating the benefits of economic development incentives in attracting capital investments and jobs to Texas

Who is tracking public pension achievements in legislation? National Public Pension Coalition

Where can I find their analysis? NPPC State Coalition Analysis

What achievements is NPPC highlighting in 2019?

• COLAs for the first time in 10+ years in Texas and New Hampshire
• Wyoming and Oklahoma added COLAs to their 2020 legislative agenda
• Colorado eliminated a contribution increase

Pensions & Investments | National Public Pension Coalition’s legislative analysis shows gains in 2019

Where: Beaumont, TX

What: City Council enacting a master list of local contractors that will be emailed when an opportunity to bid on a project arises

Why: Keep local tax dollars with local entities

Who supports this local contractor notification system? Associated General Contractors of Southeast Texas

Beaumont Enterprise | Beaumont takes step to keep tax dollars local

Where: Phoenix AZ

What is the proposition? Prop 106 would require additional annual assessment of all of its pension liabilities

What happens if the pension assessment shows less than 90% funding?

• cap on City budget growth for City programs
• does not apply to budgets for police, fire, first responders, and labor contracts executed before January 1, 2018

Who is opposed? Greater Phoenix Chamber

Greater Phoenix Chamber | Prop 106 would be fiscally irresponsible for the City of Phoenix

AZ Central | Prop. 106 balances Phoenix pension debt on kids and seniors. That’s unfair

Where: New Mexico

Who appointed the Pension Task Force? New Mexico Gov. Michelle Lujan Grisham

What recommendations did the task force make?

• increase in contributions
• 3 years of reducing COLAs
  • maximum COLA would be set at 3% per year
  • With 100% funded pension, increase to 5% per year
  • Minimum adjustment of 0.5%
•  profit-sharing model to have benefits fluctuate with returns
• eliminate the current earnings cap of 90% to encourage longer employment

Chief Investment Officer | New Mexico Governor Pitches Plan to Bring State Pension to Solvency

Where: Pennsylvania

Why did Pennsylvania legislators move from SB 725 (2019 |IN) that funds broadband in rural areas to a natural gas tax?

• Pennsylvania is having challenges funding last mile broadband in rural areas
• the impact fee imposed in Marcellus is not enough

What is Pennsylvania Manufacturers’ Association office saying? ““We agree that Pennsylvania should be more like Texas,” Taylor said. “Texas has no impact fee, it has no corporate net income tax, no personal income tax, it is a right-to-work state. Texas has enacted very meaningful limits on lawsuit use. If the administration is interested in trading those reforms for a severance tax, we think that’s a discussion worth having.””

Indiana Gazette | Broadband hearing reopens debate on gas tax

Where: Massachusetts

What agency is promulgating home delivery cannabis rules? Cannabis Control Commission

What were the policy considerations?

• Allow home delivery in communities that have banned marijuana dispensaries?
• Should delivery persons travel in pairs? Should they wear body cameras?
• Should marijuana cafes be options for people who live in non-smoking apartment buildings?

WAMC | Rules Proposed For Marijuana Home Delivery And Cafes

Where: Texas

Who: Professor of Government, University of Texas at Austin

What are the arguments against tax incentives?

• there is a long list of scandals involving economic development programs
• no ROI for taxpayers
• it is a waste of tax dollars, investments would have occurred anyway in 75% to 98% of the cases
• cause harm to local governments and state coffers

Gainesville Daily register | THE CONVERSATION: Why states and cities should stop handing out billions in economic incentives to companies

Where: Utah

What: Utah voters approved medical marijuana in November 2018

Immediately after the law was effective, the Governor calls a special session and the Legislature overturns the voter approved law.

Utah’s highest court upholds the ability of the Legislature to overturn a voter approved referendum.

Courthouse News | Utah High Court OKs Legislative Gut of Voter-Approved Pot Law

Where: California

What is this lawsuit about? By failing to collect adequate sales taxes from Amazon the state’s tax collectors gave Amazon an unfair competitive advantage and failed to fulfill its duty to the state

Sacramento Bee | California failed to collect billions from Amazon and hurt taxpayers, shop owner says in lawsuit

Where: California

The Cannabis coalition: state advocates teaming with local (city & county) advocates

Why? Cannabis regulation and taxation is local level in California and is a legal patchwork

Sacramento Bee | ‘Political heavyweights’ unite to fight for cannabis from the capitol to the counties

Where: Florida

What drafting occurred in the Florida decriminalization bill? the bill did not remove all criminal punishments and retained a reference to misdemeanor offenses

The bill: HB 25 (2019-2020 | FL)

Marijuana Moment | Florida Lawmaker Files Bill To Decriminalize Marijuana

Where: Austin TX

What: Electronic tipping of musicians and artists via Dipjar for digital tips

How: Pilot program launches Summer 2019 with artists applying to participate

NYDaily News | Austin, Texas, takes new initiative to support city’s struggling musicians with cashless tipping pilot program

Where are impact fees being considered? Waco TX

What factors contributed to impact fee discussion?

• economic growth
• population growth

What are impact fees?

• onetime charge
• imposed on new development
• funding infrastructure such as roads, water & sewer lines required to serve the new development

How does this shift a burden from rate payers and taxpayers?

• Downtown and long established residents aren’t footing the bill for new development infrastructure
• Its a work around property tax revenue limitations
• Those who are paying the impact fee, benefit directly from the fee

Waco Tribune-Herald Editorial | EDITORIAL: Impact fees overdue amid vigor of local growth

Where: Mexico

Which industry will be paying less tax revenue? oil and gas via PEMEX

Which industries will Mexico add to an existing tax?

•  Amazon
• Uber
• AirBnB
• digital platforms
• ecommerce

How are they talking about it? It isn’t a new tax, it is expanding the tax base

Reuters | Mexico to adjust tax framework to realities of digital economy

Where: Arizona

What: Arizona Attorney General oversees a fintech sandbox

Texans, why does this sound familiar? A much discussed bill was filed by Sen. Paxton to create a finch sandbox at the Attorney General’s Office. The bill did not advance, at all.

Who is behind the cannabis bitcoin?

• ALTA (www.whatisalta.com)
• an Arizona startup

Why a sandbox solution? to solve the banking issue of cash intensive cannabis industry

Arizona Attorney General | Arizona Attorney General’s Office Accepts ALTA into FinTech Sandbox

Where: Stanton CA

What is the marijuana tax on the ballot?

• $12/sq.ft. tax on marijuana and industrial hemp cultivation facilities for canopy space
• 6% gross receipts tax on dispensaries and weed delivery services

Estimated annual tax revenue: $1 million to $1.4 million annually

City is dedicating revenue to: public safety, road repair and other service

Voice of Orange County | Stanton Residents Will Vote on Marijuana Tax Nov. 5

Where: Nevada

What: SB 32 (2019 | NV)

Why did this happen? A court is looking into the agency head who approves applications and the close relationship with cannabis industry, including removing issues from applications

What did the bill do? Clarifies that disciplinary actions and law enforcement records for cannabis applicants are not confidential and privileged under state law

Nevada Independent | As state’s cannabis license questions linger, tax department official takes a grilling

The opinion request: RQ-0298-KP

Who is requesting the opinion? Goliad County Attorney

What tax are they seeking instructions on to repeal? a special road tax approved by voters in the early 1900s

What issues are lurking about?

• Does the vote to repeal the special road tax have to follow Transportation Code §256.053?
• If yes, can” 50% plus one of the registered voters that sign the petition requesting the commissioners court to call for an election to repeal the special road tax, be satisfactory proof to the commissioners court ?”

Where: California

What was the rate of growth of California pension costs?

• from 2007 to 2016 the increase was up $7,022 per employee
• national median increase of $1,216
• California cost increase was 6 times the nations

How did this happen?

• correlation between pension cost increases & unions/collective bargaining
  • cities with 50% union membership saw 4times the cost increase

Funding for this researcher’s study provided by

• Laura and John Arnold Foundation
• Berkeley Institute for the Future of Young Americans
• Institute for Research on Labor and Employment

Sacramento Bee | Local Pension Costs Grew in California at Nearly Six Times National Rate

Where: Tennessee, Texas, & Alaska

What: invest funds in Innovative Industrial Properties, that will operate in Illinois where recreational marijuana becomes legal Jan. 1

Other pension investments in cannabis?

• New York State Common Retirement Fund.
• Arizona State Retirement System.
• California State Teachers Retirement System.
• California Public Employees Retirement System.
• Public Employees Retirement System of Ohio.
• New York State Teachers Retirement System.
• Oregon Public Employees Retirement Fund.
• State Board of Administration of Florida Retirement System.
• Louisiana State Employees Retirement System.
• Commonwealth of Pennsylvania Public Schools Employees Retirement System.
• Teachers Retirement System of the State of Kentucky.
• Municipal Employees’ Retirement System of Michigan.
• State Teacher Retirement System of Ohio.
• Public Sector Pension Investment Board — Canada.

Chicago Sun Times | 3 other states, numerous public pension funds aiming to profit off legal weed in Illinois

Where: Colorado

What regulator? Colorado Economic Development Commission

What policy concerns are addressed by the tax incentive ? need for additional affordable housing

What is the tax incentive look like? economic development funds and incentives to manufacture modular housing and hire unskilled and disadvantaged workers in Colorado

Denver Post | Colorado commission addresses affordable housing by extending incentives to manufacturer of modular homes

The audit: SAO 19-042

What part of state contracting does this concern?

• Vendor Performance Tracking System
• at the Office of the Comptroller of Public Accounts
• Use by the Texas Workforce Commission & Parks and Wildlife Department

What are the 2 takeaways important to procurement?

• more scrutiny on the data submitted by contractors to verify accuracy
• greater reliance on the reported data by the agencies prior to contract approval

What question will Opinion Request 0296-KP answer?

Can a city council provide tax revenue to improve a Chamber of Commerce Facility not owned or operated by the city?

Where: City of Big Lake, Texas

What happened? City Council spent $65,000 to repair the Chamber facilities, not owned or operated by the city, and received a complaint

If I’m drafting bills for 2021 what do I need to watch for? Clarifying Tax Code Section 351.l0l(a)(l) that visitor center includes Chamber of Commerce facilities

And yes, you should be drafting 2021 bills now.

Who conducted the research? Federal Reserve Board, Bank of England, & the Brookings Institute

What are 3 reasons it found to not panic over unfunded pension liabilities?

• fully funding pensions is not necessarily right, it’s just assumed to be the right thing
• pension debt is stable if its size relative to the economy doesn’t increase
• analysis of pensions should be from a “public finance [and sustainability] angle” which would not find a crisis

Governing | What Crisis? The Case for Not Panicking Over Pension Debt.

Where: Congress’ SAFE Banking Act HR 1595 (116th Congress)

What sparked the legislation? Federal law and some state banking laws prevent providing banking services to the cannabis industry

Why is the legislation good for states and cities? It is estimated that cannabis taxes are underpaid by 20%

Why is this good for the economy?

• without banking options, the industry has no start ups
• without banking options, it is cost prohibitive to enter the industry

Sacramento Bee | Sacramento audit finds pot dispensaries under-report taxable revenue, other violations

Governing | Support Grows for Marijuana Banking Bill in Congress

Where is this happening? Missouri & Kansas

What limits are they putting on tax incentives for corporations?

• In lieu of tax incentives for corporations
• The money is being put into development by the local government

Why? Is this something unique to these two states? Yes, Kansas City two state geography created a stalemate so the states wouldn’t take companies back and forth across the state line.

NY Times | Editorial | Can States Just Say No to Corporate Giveaways?

What question is KP-0261 answering? Are there limits on economic development funds under subsection 381.004(h) LGC programs?

Are there limits on these economic development funds?

• No, the limits of 381.004(g) do NOT apply to (h)
• BUT there are constitutional parameters
• Generally, the Commissioners Court gets to set the term for the funds

What made the requestor think there were limits? Limitations in 381.004(g)

Tax Foundation | How Well-Funded are Pension Plans in Your State?

Where: Illinois

What: SB 2023 (2019 |IL)

How is Illinois tackling the cannabis industry banking issue?

• Prohibiting state regulators from penalizing state banks for working with the industry
• Prohibiting state regulators from discouraging banks from working with the industry

Which state official pushed the legislation? The Illinois State Treasurer

Governing | How Nevada Plans to Solve the Marijuana Banking Problem

Where: Oregon

What 3 lessons can be learned from Oregon’s legalization?

• SURPLUS PRODUCT SALES. What can producers do with it? Can it be transferred out of state?
• SURPLUS PRODUCT LIMITATIONS. Oregon found it had product on shelves to supply sales levels for 6 years. What state controls can be placed on production?
• WHICH AGENCY OVERSEES IT? In Oregon the Oregon Liquor Control Commission oversees cannabis industry

How did Washington and Colorado handle surplus?

• Limit the production licenses people can hold
• Limit. the number of plants businesses can grow

How did Oregon adapt to control for surplus? Passed legislation to allow regulators to stop issuing new production licenses when supply > demand

What key for lawmakers/regulators to know? The existing, illegal, production levels. Oregon found a lot of illegal operators adapted to the legal market

Stateline | Enough Marijuana for 6 Years: Oregon’s Cautionary Tale for Other States

Legal types are talking about the US Supreme Court’s ruling this term in Gundy as an act by the Court to reign in the delegation of rule making authority to agencies.

Look for the argument in a State House near you.

The New Yorker | The Supreme Court Is One Vote Away from Changing How the U.S. Is Governed

Where? California

The bill? SB 347 (2019 | CA)

Why did it fail?

• Strong opposition from this coalition:
  • soda industry
  • California Restaurant Assn.
  • California Grocers Assn. 
  • California Chamber of Commerce
• The bill is too narrow and doesn’t touch syrupy coffee drinks or other drinks containing sugars

LA Times | California bill requiring warning labels on sodas, sugary drinks is shelved

Where: Arizona

The potential state contract ban: NIKE

How is this going to work? The Governor wants to stop economic development deal made by a city for a Nike facility 

Why is this happening? Nike withdrew a shoe at the request of former NFL quarterback Colin Kaepernick

The tweet that started it: “Nike has made its decision, and now we’re making ours. I’ve ordered the Arizona Commerce Authority to withdraw all financial incentive dollars under their discretion that the state was providing for the company to locate here,” Ducey, a Republican, wrote in a series of 3 a.m. tweets Tuesday.

Governing | Arizona’s Governor Wants to Cancel a City’s Contract With Nike. Can He Do That?

Where: Long Breach CA

What travel ban? Prohibiting taxpayer funded travel to Alabama and Georgia due to abortion restrictions

Is Long Beach alone? No, similar travel bans are also in the works by Los Angeles, the State of Colorado and the State of Maryland 

AL.COM | Another California city looks to ban travel to Alabama over abortion law

Where: Texas

What question will the Texas Attorney General Answer? 

• Did TDHCA follow requisite statutes when awarding the 2019 Competitive (9%) Housing Tax Credit Application Cycle?

What’s really going on here?

• 2 Region 11 Urban applications violated TDHCAs 1000 foot rule
• TDHCA accepted these 2 appeals
• By accepting these appeals, did the agency violate the time requirements to file an appeal?
  • Does the appeal deadline clock start when the Application Log goes public on the TDHCA website?
  • Does the appeal deadline clock start when the list serve information is sent?

RQ-0293 – KP Texas Attorney General 

Where: Key West

What is being banned? RoundUp weed killer & anyt herbicides that contain glyphosate

Why? A $2 Billion lawsuit that has found the weed killer to be a carcinogen

CBS 4 Miami | Key West Bans Weed Killer In Wake Of Costly Cancer Lawsuit 

Where: Ingelwood, CA

The stadium: L.A. Clippers Arena

What was Council’s violation? The meting notice did not provide sufficient notice of what was to be discussed

What should have been described? Any information of the location and scope of the contemplated development project

The impact: Courts could rule the counsil action null and void

Los Angeles Times | Inglewood meeting to approve Clippers deal violated state law, D.A. says

New Jersey State Investmetn Council voted to cut hedge fund investments in half.

Total NJ fund investments in hedge funds will herafter total approximately $2billion.

What other funds/systems have cut hedge fund investments?

• New York City’s pension for civil employees
• California Public Employees’ Retirement System

Bloomberg | New Jersey’s Pension Fund to Cut Hedge Fund Allocation in Half

State: Iowa

Legislation: SF 617 (2019 | IA)

Rulemaking by Iowa’s Racing and Gaming Commission:

• Open to Iowans 21 or older
• Rquires a visit to any of Iowa’s 19 state-licensed casinos to register for online wagering
•  6.75% rate
• drafting rules in June
• public hearings in July
• Require vetting of sports betting partners to the extent that casinos are currently vetted in Iowa

Go to sample regulations for sports betting:

• New Jersey
• West Virginia
• technical standards from Gaming Laboratories Inc

The Gazette | Commission works to set rules on Iowa sports betting

KP-0254 (2019) answers the question whether after the Court of Criminal Appeals ruling in State v. Doyle which invalidated part of this act still prohibits multiuple email communications that are less than a quorum. 

What does this mean for school districts? if a school district board of trustees deliberates public business in emails that are sent to fewer than a quorum, TEA continues to ahvae authority to seek enforcement regardless of the Doyle decision. 

Louisiana legislative committee added language to its fantasy sports bill that requires fantasy sports to occur only if a person is at a “card checking over-21 only establishments”  like video poker stops, bars, or casinos

KPEL | BILL TO RESTRICT WHERE YOU CAN PLAY FANTASY SPORTS HEADS TO HOUSE FLOOR

• House Paint colors. Local government limited paint selections in its jurisdiction.
• Roof types.
• Porch Design.
• Windows & Doors
• Number of rooms and types of rooms in a residence
• Timber use. not to use timber in construction of buildings more than three stories in height

The policy goal of local governments: avoid shoddy, quick builders

Governing | Should Cities Regulate How You Design Your Home?

Iowa & Virigina are focusing their public education funding on career and technology. Here’s their stories:

Iowa is spending on public education by:

• Gap Tuition Assistance Program
• Pays tuition, books and fees for lower-income students pursuing credentials from approved program
• Boasts an 89% completion rate
• $2M in state funding

Virginia is spending on public education by:

• New Economy Workforce Credential Grant Program covers 2/3 cost of a credentialing program,
• pay-for-performance model that pays community colleges when students complete a class
• AND, the student has obtained an approved credential aligned with the state’s annual “hot jobs” list
• State Funding Levels are $4.5 million in 2017 &  a projected $13.5 million by 2020

The economic benefits of their investment in career in technology have netted big returns by:

• raising workers’ wages
• closing skills gaps
• driving economic development
• at a lower cost than “free college” inititatives in other states

Governing | Commentary | The Education Investment States Should Be Making

Where: Great Britain

What: 1/3 of British lawmakers are calling on the parliamentary pension fund to divest its holdings in fossil fuel companies 

Why? to address the climate change “emergency”

What’s the largest fund to divest from fossil fuels? Norways $1 trillion sovereign wealth fund (the world’s largest fund

Reuters | British lawmakers demand their pension fund divests fossil fuels

Background: The Pew Chairtable Trust Report

Why is the PEW Report wrong?

• Bias against defined benefit plans for police, firefighters, teachers, and state and municipal employees
• Bad Data. Pew focused on 2015 and did not include 2017 pension reforms in Texas
• Bad Metric for measurement. Pew relies on the “funded ratio.” Amortization periods is a better metric.

TEXPERS REPORT: Pew Charitable Trusts Misleads On Texas Pension Funds

Where: Oregon

The Legislation: HB 3427 (2019 | OR), the Student Success Act

What’s the tax? a 0.57% tax on businesses that have more than a million dollars in Oregon sales

How would the allocations work for schools?

• 1/2 to grants to state school districts for programs aimed at improving things such as graduation rates, reading levels and attendance
• 20% to  early childhood learning programs
• 30% to  career-technical education programs and free meals at school for low-income students

Any notable events in the process?

• Republican Senators unsuccessfully tried to break quorum to prevent the bill from passing
• Business leaders struck a deal for this tax to forgoe other anti-business legislation

OPB | After Tumultuous Week, Oregon Senate Passes Historic School Funding Bill

After 1 year of fantasy sports, Pennsylvania has generated $22.5 million from the industry.

Play Pennsylvania | PENNSYLVANIA GAMBLING EXPANSION REVENUE

Where: Colorado

How much will the state invest per kid born or adopted between 2020 and 2040? $100

The legislation: HB19-1280 (2019 | CO)

Funding mechanisms:

• CollegeInvest, a division within the Department of Higher Education
• no tax dollars
• Before the kid is 5, parents must open their college savings account

Governing | A College Fund for Newborns: Colorado Will Invest $100 in Each

Denver Post | Colorado to set aside $100 for each newborn’s college savings through 2040

New Hampshire may soon legalize sports betting with 5 operators in the state.

While the legislative journey continues these amendments are being considered:

• Allow Lottery Commission rulemaking to allow caps on retail sportsbooks & mobile operators
• Allow, tier 2 betting, during play betting at brick-and-mortar locations
• Clarify that multiple mobile operators are permitted

Legal Sports Report | New Hampshire Senate Poised To Pass Amended Sports Betting Bill

State: Lousiana

Legislation:  HB508 (2019  | LA)

How would beer delivery work?

• applies to grocers and liquor stores
• could hire their own drivers
• deliver to anywhere that is not near a college campus
•  the bottles are factory-sealed 

Is there a business to fill this niche? Yes, yes there is.  Drizly alcohol delivery

Louisiana is also considering HB 349 (2019 | LA) that would allow ine and beer delivery when you order food.

KALB | Beer to your front door? Alcohol delivery bills advance in legislature

• 77% strongly support a revenue cap
  •  84% among rural Texans
  • 72% among those in metro Bexar, Dallas, Harris, Tarrant and Travis
  • 81% of voters in suburban counties such as Brazoria, Collin, Denton, Fort Bend, Montgomery and Williamson
  • 80% of voters in mid-size regional hub counties such as Jefferson (Beaumont), Lubbock, McLennan (Waco), Midland, Nueces (Corpus Christi) and Smith (Tyler)
  • 76% in the urban border counties of Cameron, El Paso, Hidalgo and Webb
  • 89% of the  Silent Generation
  • 78% Boomers
  • 78% GenX
  • 72% Millenials
  • 72% Post-Millenials
  • 73% Hispanics
  • 84% blacks
  • 77% of whites
  • 90% Republicans
  • 66% Democrats
  • 92% of white Republicans
  • 84% of Hispanic Republicans
  • 85% of black Democrats
  • 72% of Hispanic Democrats
  • 56% of white Democrats.
• 23% strongly oppose a revenue cap

Texans Support Property Tax Caps, Some More than Others |  Renée Cross, Jim Granato, Mark P. Jones and Pablo M. Pinto

Where: Ohio

The tax proposal: Built into the OHio budget is an extension of the state sales tax to ride share

Background: Before the budget proposal, the Ohio Department of Taxation was trying to collect $1.6 million in sales taxes and penalties from Uber, saying the company is  a “vendor of transportation services,” and as such must pay sales taxes

Dayton Daily News | Uber, Lyft could pay sales taxes under Ohio budget proposal

Where: Florida

What legislation was vetoed? A bill that would have prohibited local bans on plastic straws

How did the ban function?

• “each ordinance or regulation adopted”  would be reviewed
•  Department of Environmental Protection would do the review
• Then the ordinance would be reviewed by the Leader of the Senate & House
• The review would look at “data and conclusions” used in adopting local ordinances

Why? What was the Governor’s rational?

•  cities have not “frustrated any state policy”
• cities have not”harmed the state’s interest” by panning straws

Governing | In First Veto, Florida Governor Allows Local Governments to Ban Plastic Straws

City: Denver

The Initiative 301 election results: set to pass narrowly with 50.6%

Other ballot initiatives on psychedelic mushrooms? Yes, Oregon & California in 2020

Governing | Denver First in U.S. to Decriminalize Psychedelic Mushrooms 

33 State Attorney Generals are calling for federal banking reforms

Why? To allow reglated dispensaries to be able to use banks like other businesses.

How much money are we talking about? The industry represents $8.3 billion 

The Attorneys General: Alaska, Arizona, Arkansas, California, Connecticut, Colorado, Delaware, Hawaii, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin

  Governing | 33 State AGs Ask Congress for Marijuana Banking Reform

Where: Montana

What: schools offer a new tax specifically for school safety costs such as:

• Tech upgrades
• Trauma-informed programs
• school resource officers

The legislation: SB 92 (2019 | MT)

Governing | A New Tax for School Safety Aims to Protect Students in Montana

What entity is studying it now?  Fitch Ratings

How has alternative investments increased? tripled from 2007 to 2017

The returns? median average returns on overall investments were 6.2%

What were the overall returns before alternatives? 6.4%

Governing | Pensions Have Tripled Their Investment in High-Risk Assets. Is It Paying Off?

Where: San Francisco

What: An ordinance to prohibit cashless brick and mortar establishments.

Why: Business should be inclusive to all, including those who are cash only

Have any state legislatures banned cashless establishements? Yes, New Jersey and Massachusetts

Have other cities banend cashless estbalishments? Yes, Philadelphia

Los Angeles Times | Essential California: Why San Francisco banned cashless stores  

Where: Georgia

The pension bill: SB 14 (2019 | GA) and SB 259 (2019 | GA) 

What do I need to know?

• they look to triple their pension
• $17,324 a year is how much a Georgia legislator makes
• vest in 8 years of service,
• receive $36 a month for every year they are in the Legislature
  • the bills move this amount to $50

Atlanta Journal Constitution | Legislative panel looks at options to boost Georgia lawmakers’ pensions

Where is this complicated sounding program happening? California

What entities are in the private-public partnership?

• California Department of Food and Agriculture, the California Air Resources Board, and farms, ranches and restaurant
• Perennial Farming Initiative, a Bay Area nonprofit organization created by veterans of San Francisco restaurant
• Caliornia Air Resources Board
  Check please!’ Californians can fight global warming with restaurant surcharge

How does this program work?

• particiapting restaurants implement a 1% surcharge
• the surcharge will:
  • go into a fund
  • the fund will help farmers remove carbon from the atmosphere & adopt climate-friendly practices

Sacramento Bee | Check please!’ Californians can fight global warming with restaurant surcharge

• its regressive, like any sales tax
• hurts small businesses
• litigation, the tax is heavily litigated if its enacted

What states have attempted it in recent years?

• California
• Massachusetts
• New York
• Rhode Island
• Vermont

What 3 states have passed bill to preempt local soda taxes?

• Arizona
• California
• Michiga

What was the last state to do it? Arkansas in 1992 when Governor Bill Clinton was running for President

GOVERNING | Why, Despite Trying, No State Has Passed a Soda Tax Since 1992

Where: New York City

The ban: No alcohol ads

Where does the ban apply: on any city property

How far reaching is this: newsstands and bus shelters are included

Was this by ordinance? No, mayoral executive order

Governing | No More Alcohol Ads: NYC Mayor Issues Ban for City Property 

​

• Vote Threshold. Couldn’t reach the 2/3 vote reqwuired for tax legislation in California
• Counter Point. “The beverage coalition had threatened a ballot measure that would make it harder to raise local taxes and fees of any kind”
• Legislative Soda Distractions. 2 bills. safety warnings on sugary drinks & ban soda discount coupons, took up legislative attentions

Daily Democrat | Soda tax loses its fizz in Legislature

A federal judge in Texas blocks a Texas divestment law that prohibits Texas from doing business with contractors who are boycotting Israel for these 2 reasons:

• the law affects “the public debate through coercion rather than persuasion.”
• Prohibited by the 1st Amendment

Governing | Judge Temporarily Blocks Texas Ban on Contractors That Boycott Israel

Want to watch this Request for an Atorney General Opinion: RQ-0285-KP

Why? TEA is asking whether civil remedies apply to violations of open meetings act?

What’s that mean? Private law suits against public entities for violations of the open meetings act

Why is this important? NEW COURT RULING. 

• The Court ofCriminal Appeals
• Ruling: provision criminalizing the conspiracy to circumvent the Texas Open Meetings Act is unconstitutionally vague

How many open meetings bills can you count in the Texas Legislature? 

Where: Oklahoma

What: SB 1001 (2019 | OK) prevents cities and towns from imposing a fee on single-use plastic and paper bag

Norman Transcript | No regulations: Stitt signs plastic bag pre-emption bill

A paid story teller position at local goverenments, what is this? people who talk about the city’s culture to visitors, journalists, businesses

What cities are doing this? Detroit & Denver

Governing | A New Gig in Government: Chief Storyteller

• student housing at Perdue University & Univeristy of Georgia
• courthouse in Maryland
• prison in Kansas
• a non-toll road on I-75 in Michigan
• airports (LAX, Austin , St. Louis, Kansas City & LaGuardia)
• rennovate a great hall in Denver
• hotels in Jackson, MS, Nashville, TN, Phoenix AZ & NY’s JFk Airport

Why is this thinking outside the box important?

• rating agencies downgraded municipal bonds used to build luxury dorms at Texas A&M and Oklahoma universities
• why?  cost-conscious students shunned the luxury living quarters

Governing | Not Just Toll Roads Anymore: Governments Find New Uses for P3s  

Colorado’s SCR019-003 (2019 | CO) would repeal its gas tax and replace it with a sales and use tax.

Why? The gas tax isn’t bringing in enough revenue to cover transportation costs. Time to modernize.

Colorado Politics | Could dropping the state gas tax help fund transportation in Colorado? 

• investment in rural areas is seen as too risky unless state and local governments intervene
• until there is a “risk free” model there is no momentum for rural opportunity zones
• the Governance Project suggests local and state governments insure investments to move investors to rural Opportuity Zones

Governing | Investors Are Hesitant’: Rural America Might Miss Out on ‘Opportunity Zones’

State: Colorado

The legislation:  HB19-1327 | Authorize And Tax Sports Betting Refer Under Taxpayers’ Bill Of Rights

What would this legislation do?

• Voter approval required
• Sports betting operators would have a 10% tax on revenue
• Allows the 17 companies that own Colorado’s 33 casinos to apply for something called a master license
• Likely allow sports betters to register online, to keep them from traveling to register at the betting location and then returning upon approval
• Estimated revenue to the state: $7 million to $9 million annually

Denver Post | Colorado lawmakers introduce bill to legalize sports betting

Where: Los Angeles

How would the education tax work? It would have to be approved by voters and would be a parcel tax to fund local schools.

Los Angeles Times | Garcetti Calls for New Education Tax in State of the City

5 Cities offering Opportunity Zone investments?

• Erie, Pa.;
• Louisville, Ky.;
• Oklahoma City; 
  • ​tax increment financing district overlapping incentives and benefits i
  • bouyed by a  2017 ballot initiative in which voters approved $50 million for job creation
• South Bend, Ind.,
• Stockton, Calif

Governing | States, Cities Add Sweeteners to Attract ‘Opportunity Zone’ Investors

How many opportunity zones in the US?  8,700 opportunity zones

So what are states and cities offering as Opportunity Zone incentives?

• income tax exemption in West Virginia
• preexisting enterprise zone benefits by overlapping districts in Florida
• exempt historic preservation requirements for Connecticut Opportunity Zones
• tax credits to opportunity zone businesses that hire former inmates in Maryland
•  historic preservation tax credits to businesses in Maryland

Governing | States, Cities Add Sweeteners to Attract ‘Opportunity Zone’ Investors 

• Others agree. WalletHub says Texas is 7th in services received for taxes paid
• Caution.Texas scored a lowly 38 on some services.  Long-term prosperity is not optimized when education, health and infrastructure are falling behind on the altar of low current tax levies. 
• Growth needs revenue. “additional resources will definitely be required to keep Texas at the forefront of growth and prosperity in the coming decades”

Waco Tribune | Ray Perryman, Board of Contributors: Texas taxpayers getting money’s worth in government services

An initiative in Oregon would create a constitutional provision that moves state workers to a 401 K hybrid system.

• workers would chose a 401K or a pension
• would apply to state workers, teachers, firefighters

Opponents say the proposals do not:

• tackle unfunded liabilities
• reduce benefits
• will create costly legal battles for the state and local school districts

Is the Legisalture making considerations to address unfunded liability? yes, using surplus from the state’s workers compensation fund to partially pay down unfunded liabilities

East Oregonian | Ballot measures could tackle pension challenge

• film industry generates more tourism dollars
• film industry generates 150,000 jobs and $2.02 billion in wages for Florida in 2016
• Florida saw the effects of their film incentives sunsetting
  • jobs, wages, and tourism goes to other states

Pensacola News Journal | The future of Florida’s film industry is in the hands of the Legislature | Guestview

Arizona Governor signed a bill that grants any person that moves to Arizona with a professional license, in good standing, including doctors, automatic licensure in Arizona.

Bonjour Texas, sounds like an culmination of TPPF licensure bills, yes?

Governing | Arizona Governor Signs First-in-Nation Job Licensing Bill

This week focused on proposed rules at the Texas Workforce Commission that would classify gig economy workers as indpendent contractors.

Why does this sound familiar? becuase informed:intel subscribers know we’ve been in this exact situation from 2015 in California. 

Houston Chronicle | Texas rule limiting worker benefits in gig economy would hurt local businesses, owners say

To keep Draft Kings and Fan Duel out of Illinois, this amendment was proposed:

No sports wagering operator license or Internet sports wagering vendor license shall be granted to an applicant that has accepted, that has or had an affiliate that has accepted, or that has officers or directors who are or have been officers or directors of another party that accepted wagers through the Internet in contravention of any United States law, Illinois law, or any substantially similar laws of any other jurisdiction before the application date …

The legislators tied it to Attorney General opinions that found the two daily fantasy sports operators had operated illegally in Illinois.

Legal Sports Report | Bad-Actor Amendment Proposed In Illinois Sports Betting To Target DraftKings, FanDuel

• MONTANA SB 330 (2019 | MT)
  • licenses & permit fees for sports-book operators
  • 8.5% tax on gross betting receipts 
• ALABAMA HB 315 (2019 |AL)
  • Creates a new oversight agency
  • 10% gross receipts tax
  • 7 licenses at existing racetracks
  • $100,000 application fee
  • yes to online wagering
• LOUISIANA SB 153 (2019 | LA)
  • Will follow its Daily Fantasy Sports law, which allows local parishes to opt into wagering
  • Exisiting racetracks and casinos would offer sports betting
  • fees and taxes are not in the bill 

KPAX | Bill to legalize sports betting in Montana advances in the Legislature

Why are state legalized marijuana laws adapting? Over-regulation at the outset

What revisions are being made?

• out of state ownership. Initially prohibited in CO and WA.
  • New legalization in NV, CA, OR & MI have been more permissive about out of state ownership
  • CO revisions include up to  15 out-of-state owners per license
  • WA is considering out of state ownership up to 40% if licensees permit unions
• financial restrictions
  • WA is easing financial restrictions
  • since banks do not support the investments, licensees rely on private investment
• rules enforcement stepping away from licensure forefeiture 
  • WA is considering allowing licnesees to ask compliance guidance from the agency without risking the license

Oregon Live | Washington, Colorado move to loosen rules on marijuana businesses

The study:  State and Local Government Review by The University of Texas at Dallas researchers

Why are pensions in cities that rely on property taxes better funded?

• Higher contribution rates. tend to contribute more to their pension systems
• State funded local pension funding declines. cities that rely on state aid for the pension systems have lower contribution rates
• Reliable revenue source. property taxes are more reliable & weather fiscal stress

“Overall, the study reports that every 1 percentage-point increase in reliance on property taxes as a share of own-source revenues corresponds with a $3.22-per-capita drop in unfunded pension liabilities.”

Governing | What Cities’ Revenue-Raising Methods Say About Their Pension Funding

California’s AB 161 (2019 | CA) would bar retailers from printing paper receipts, unless requested by the customer, and offer electronic receipts.

• The bill would phase in by 2022.
• The bill exempts cash-only and smaller businesses with gross receipts under $1 million

Opponents, the American Forest and Paper Assn., say paper receipts is only a small fraction of paper use annually.

LA Times | Sick of those long paper receipts? California lawmakers are weighing a bill to ban them

The Institute for Justice lays out 3 reasons to support leveling the playing field for craft brewers in Texas:

• businesses should not  “use public power for private gain”
• that TX craft brewers “can no longer negotiate the sale of their distribution rights”
• statutorily transfering craft brewer distribution rights to distributors is a “blatant forced transfers of wealth”

TribTalk  | Texas courts shouldn’t “protect” businesses from competition

Add Rhode Island to states that will tax all online sales into the state to level the playing field with local small businesses.

GoLocalProv | General Assembly Passes Bill to Collect Sales Taxes from Online Retailers 

California’s AB 147 (2018/2019 | CA) what qualifications is California building in before an online sales tax is triggered?

• Out-of-state online retailers
• that make more than 200 transactions or $100,000 in California
• 4 days before they must begin collecting and remitting state sales tax from shoppers
• An amendment is being pushed to raise the $100,000 to $500,000
• 3rd party sellers on sites like eBay, Amazon and Etsy, to collect and pay the taxes on behalf of its sellers
• retailers will have to register with the state

Tennessee SB 16 and HB 1 (2019 | TN)   built on a message that TN was losing $3 Billion in revenue to neighboring gaming states.

The opposition arguments:

• morality
• young sports stars will be prey to offers to fix a game
• “Some things we just don’t do,”
• its like the legislature peddling cocaine, other legislators said it was like crack cocaine

Tennessean | Sports betting bill faces opposition from both Republicans and Democrats

Ohio SB 111 (2019 |OH) was filed with no intergrity fee and authors commit to no integrity fee ever.

What interests the bill’s author? NFL official data

What about online wagering? Follows the New Jersey model for mobile and online wagering permitting remote sign-up

Regulation by the state lottery commission? No, the Casino Control Commission will have regulatory oversight

Legal Sports Report | No Integrity Fee In Ohio Sports Betting Legislation, Key Lawmaker Says