Topics
Finance & Revenue
Finance & Revenue
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
Gig Economy + State Unemployment Funds
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
Special Legislative Committee to Handle an Industry in Recession
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
Key Element in State Sports Betting Regulations
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
Local Cultural Institutions. Leaders in Socially Responsible Investments.
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
Revival of Old Land Tax.
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
New lingo. Cannabis Debate in State Legislatures
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
Local TREND. The new plastic bag ban is the balloon ban
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
Route Fifty | Why Local Governments Are Considering Balloon Release Bans
State Law Makes Cities Pay for State Fiscal Cost of Ordinances
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
Education Savings Accounts. By the Numbers.
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
School Finance. US Supreme Court review of state constitution obstacle to School Choice
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
3 Business Chamber Interim Legislative Goals in Texas
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
2019 Achievements of Public Pension Legislation
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
Local Procurement to Keep Tax Dollars Local.
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
Anatomy of a local pension proposition
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
Pension Task Force Recommendations for Statewide Pension Reform
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
Broadband Funding Debate Opens Natural Gas Tax Debate
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
Local Rules. Cannabis Delivery.
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?
New Researcher Opposes Tax Incentives to Companies
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
Cannabis Policy Strategy lesson
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
Small Business Sues over uncollected Amazon sales taxes.
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
Anatomy of a Cannabis Coalition
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
Cannabis Legislation. Drafting Error in the Sunshine State
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
New Eco Devo Tool for funding Creative Communities.
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
City Impact Fees. Shifting the Burden from Ratepayers & Property Taxpayers
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
Industry Tax Swap. Less Oil Tax. More Tech Tax.
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
Fintech + Sandbox = State Open to Cannabis Bitcoin
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
Anatomy of a local cannabis tax ballot
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
Lege Increases Transparency of Cannabis Applicants
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
TX A.G. Opinion. How to Repeal a Road Tax
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 ?”
Reason Why State Pension Costs Rapidly Grew
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
STATE FUND INVESTMENT TREND. Cannabis investments.
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.
Regulatory TREND. Tax Incentives for Modular Homes.
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
TX State Auditor. State Contracting System.
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
TX Attorney General Opinion. Tax Revenue and Chambers of Commerce.
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.
New Research. 3 Reasons to Remain Calm over Pension Unfunded Liabilities.
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.
Anatomy of a Cannabis Banking Bill
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
Governing | Support Grows for Marijuana Banking Bill in Congress
2 Red States Limiting Corporate Tax Incentives. 3 Reasons Why.
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?
TX Attorney General Opinion Tax Abatements. 3 Key Points
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)
Pension Funding TRENDs.
| The lowest pension funding: Kentucky (34%)New Jersey (49%)Illinois (38%)Colorado and Connecticut (47%) |
| The highest pension funding:Wisconsin (103%)South Dakota (100%)Tennessee (97%)New York (95%)Idaho (91%) |
Tax Foundation | How Well-Funded are Pension Plans in Your State?
Lege TREND. Decriminalizing State Banking of Cannabis Proceeds.
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
Lege TREND. 3 Lessons from Cannabis Legalization Unintended Consequences
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 TREND. Reigning in Delegating Rule making to Agencies
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
Lege TREND. Soda Tax Becomes Warning Label. Still Fails, Anatomy of a dying legislation
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
State Government + Local Contracts = Bans with Certain Corporations announced by Tweet
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?
+1 Local Government Travel Bans
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
Attorney General Opinion. Texas TDHCA
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?
Local TREND. City Councils Banning Chemicals
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
Local TREND. Stadium Building. District Attorney Declares Council Action Violated State Law
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
Pension TREND. Cutting Hedge Funds. +1 State.
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
Regulatory TREND. How is sports betting rule making looking?
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
TX Attorney General Opinion. Violate Open Meetings with Emails
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.
Lege TREND. Fantasy Sports Amendment requires Bouncers.
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
Lege TREND. 10 Local Ordinances to be Preempted by Legislatures in 2019
- 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?
Lege & Regulatory TREND. Education Spending Focus 2 State Comparison.
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
Lege TREND. +1 Divestment from Fossil Fuels
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
3 Ways Pew Charitable Trust Gets Texas Pensions Wrong According to TEXPERS
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
School Finance TREND. Business Tax Revenue Dedicated to Education in this tax bill.
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
Revenue TREND. How much did Fantasy Sports bring to the Keystone State?
After 1 year of fantasy sports, Pennsylvania has generated $22.5 million from the industry.
State Funds College Fund for Every Kid Adopted or Born
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
3 Sports Betting Amendments.
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
Lege TREND. Business TREND. Texas Neighbor Legislature Working on Beer Delivery
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
Revenue Cap Support By the Numbers Throughout Texas
- 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
Lege TREND. Taxing Uber Lyft
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
Lege TREND. Local Preemption Veto in a Red State.
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
Local TREND. New Revenue Source. Psychedelic Mushrooms.
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
TREND. Banking Regulations and Marijuana Sales
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
Lege TREND. School Safety Tax.
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
TREND. Pensions and Alternative Investments. What do I need to know?
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?
Local TREND. Business TREND. Banning Cashless Stores.
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
Lege TREND. Increasing Legislator Pensions in a Red-ish State
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
Public Private Partnership. Restaurant Surcharge to Fund State Agriculture & Fight Climate Change
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
3 Reasons that NO State has passed a statewide Sugar tax. Or Soda Tax./
- 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
Local TREND. CityBanning Certain Ads on City Property
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
3 Reasons the Statewide Soda Tax Died in California
- 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
Legel TREND. Divestment Bills = New Citizens United?
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
TX Attorney General Opinion. Open Records.
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?
Local TREND. Forgetting Plastic Ban Bans. Bonjour Local Plastic Bag Taxes
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
Local TREND. NEW Local Government Officer. Storyteller. (Not for Children's hour at the Library)
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
New Uses for P3 Projects. Put Your thinking Caps on for New Opportunities.
- 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
Lege TREND. End the Gas Tax. Real;ace it with this tax:
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?
3 Reasons Rural Opportunity Zones Are NOT attracting Investment
- 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’
Lege TREND. Anatomy of a Sports Betting Bill
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
Local TREND. Education Tax.
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
Local TREND. Local Incentives for Opportunity Zones
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
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