Finance & Revenue

The Bureau of Labor Statistics tell us that 78 percent of the new workers between 2020 and 2030 will be Latino. The UCLA’s Latino Policy and Politics Institute found that the Latino population increased at a greater rate than the entire state population in every state. The U.S. Latino GDP would be the fifth largest GDP in the world according to this report.

Governing | Hispanic Heritage Month Spotlights Growing Latino Population and Economic Impact

 CivicPlus National Community Survey  found that 41% of residents are content with the information coming from their local governmental agencies.  82% say local governments should be transparent and allow access to administrative decisions. 69% support local governmental app use for things like potholes, leaking fire hydrants, trash collection, etc…

Route Fifty | Survey: Residents want local governments to be more transparent

The Oklahoma Legislature is in special session for tax fairness. So what does that mean? It means that the Governor wants the Lege to pass “A trigger law mandating that if a state or federal court finds that some individuals, due to their race, heritage, or political classification, don’t have to pay a state tax, then no Oklahoman will have to pay the tax.”

KSWO | Oklahoma Legislature special session on ‘Tax Fairness’ begins

Add California to the list of states that will begin/are manufacturing pharmaceuticals to bring down costs for their residents. Colorado was the first state to cap the cost of certain pharmaceuticals in 2019. In 2023, more than 20 states were taking action. California will be partnering with a drug manufacturer to produce pharmaceuticals with established controlled costs for Californians.

Route Fifty | California enters the ring of drug manufacturing. Could others follow?

You know how we talked about a constitutional provision in Oregon that prevents Republicans, who busted quorum,  from appearing on the ballot because of the  unexcused absences from quorum busting to prevent certain legislation. Well, the Oregon SoS is keeping the candidates off the ballot. But, the Oregon Supreme Court is entering this game. A first amendment right in quorum busting? This is going to be fun to watch.

Fox 12 Oregon | Oregon Supreme Court asked to decide whether GOP senators who boycotted Legislature can be re-elected

The bipartisan, federal Secure and Fair Enforcement Regulation Banking Act, was voted out of Senate Committee. Sounds exciting, right? Well, it is would allow cannabis businesses access to banking, including small business loans. Talk about unintended consequences, these legally operating businesses cannot use banks.

Schumer, Merkley, Daines, Sinema, Lummis Announce SAFER Banking Act

CNBC | Landmark marijuana financing bill clears big hurdle in the Senate

$218 million: the annual tax revenue if Ohio adopts a cannabis tax. According to a study by Ohio State, by year 5, the tax revenue is estimated to be $404 million. Voters are set to approve a cannabis tax this November. Ohio will place a 10% excise tax plus the state sales tax at 5.75% plus the local sales tax from 0.25% to 2.25% on sales of cannabis. 

We’ve talked about states luring workers with economic incentives as a method of economic development. We kicked off the conversation a few years ago with $10,000 relocation incentives in Oklahoma. Vermont has offered a $10,000 incentive too. Ascend WV offers $20,000 in incentives to move to West Virginia. State, local, and regional incentives have been successful, bring in new talent, and demand has been high.

Governing | Pay People to Move to Your State or Region? Maybe It’s Not Such a Bad Idea.

 Politics and the need for personal security is not just for Presidents any more. California is clarifying that elected officials can use campaign funds for personal security, including at their homes. AB 37 (2023 | CA)

California is taking on junk fees added to concert tickets, hotels, and online retails. SB 478 (2023 | CA) , The Consumers Legal Remedies Act, will define junk fees as unfair and deceptive.

I read a lot of Texas Attorney General Opinions. In Opinion AC-005, the interim Attorney General has recused themselves and the opinion is signed by Brent Webster. A name we all heard if we listened to the historic impeachment trial of suspended Texas Attorney General Ken Paxton. The recusal is rare. There’s a statement about it in the link. The question the opinion answers is whether a Governor’s Executive Order under Chapter 418 Government Code, has the force of law under the Penal Code. The answer: yes, yes it does.

SB 58 (2023 | CA) is on Governor Newsom’s desk and will decriminalize psychedelics. As this bill works its way to a new taxable revenue source,  it also requires study of the use of psychedelics for mental health treatments.

The Department of Energy is offering $61 million for clean manufacturing investments. The projects selected “will drive innovation to advance the next generation materials and manufacturing and related energy technologies.” What projects are we talking about? Hydrogen, fuel cells, wind energy, conductivity metal-based material systems, AI/machine learning for aerostructures, domestic EV battery manufacturing, and circular supply chains.

New Mexico, Colorado, Minnesota, Vermont, Michigan, Massachusetts, California, and Maine have all fully funded breakfasts and lunch for all students. @good

Say this really fast to yourself- night mayor. The English language is weird. There’s an uptick in the number of night mayors in the U.S.   Denver is considering adding a night mayor. Supporters include entertainment, bars, and restaurants because a night mayor would be the go-to person inside City Hall for the hospitality industry. Seattle, Ft. Lauderdale, New Orleans, and Austin all have a night mayor.

Denver Post | Should Denver Have a Night Mayor?

Massachusetts’ State Auditor has asked the state Attorney General for permission to take the Legislature to court. Why? ” in an effort to get the two branches to open up their finances and divulge details on active and pending legislation, processes for appointing committees, adoption and suspension of rules, and policies and procedures of the Massachusetts General Court.”

Boston Herald | State auditor’s threat against Massachusetts legislature ‘rare,’ Andrea Campbell says

Minnesota’s first month of hemp derived THC revenue collection neared $600,000. The collections come from 571 licensed businesses selling gummies and beverages containing THC and the tax rate is 10%. Doing the math, this means $6 million in total sales in one month.

KSTP | Department of Revenue collected over half a million in cannabis tax revenue since July 1

Seattle’s Revenue Stabilization Workgroup was created to recommend progressive taxes. The workgroup offered the following tax proposals to increase Seattle’s local tax revenue: increase the rate of the existing Jumpstart payroll tax, create a city level capital gains tax, tax companies with wide gaps between CEO pay and the median worker pay, vacancy tax, an additional tax on the sale of high-value properties, estate tax, inheritance tax, congestion tax on local roads, and a local income tax.

Governing | 9 New Ways Seattle Could Raise Taxes to Balance Its Budget

The Oregon Secretary of State has interpreted Oregon’s  Measure 113 as disqualifying Oregon lawmakers who received 10 or more unexcused absences during the 2023 legislative session from running for reelection in 2024. This captured a group of Republican Senators who broke quorum. Quorum busting consequences in the land of the Ducks.

The Oregonian | Republican senators who boycotted work can’t run for reelection, secretary of state rules

Nebraska Legislature has appointed inspectors general to look into issues concerning child welfare and prisons. This week the the state Attorney General issued, Opinion 23-008, a 38 page opinion calling the Legislature created inspectors general an unconstitutional violation of separation of powers. The AG Opinion says “immediate access to the Departments’ and Division’s documents, information, and facilities” violates the  “constitutional responsibilities and interests.” of the executive and judiciary branches.

Nebraska Examiner | Attorney general’s opinion casts doubt on powers of Legislature’s inspectors general

California is selling state office buildings to developers who will convert the state office buildings into affordable housing. It started with an executive order,  Executive Order N-06-19  in 2019. The project is expected to produce more than 400 new affordable homes.

Office of the Governor | Conversion of Vacant Office Buildings to Affordable Housing Moves Forward

Courts are interpreting emojis. Money bags, a rocket ship, and a chart pointing up were interpreted by a court in New York as supporting investment returns. Hello, state laws and regulations are you up to date with communication methods?

@bloomberglaw

Colorado open records and open meetings laws require legislative caucuses to meet in the open. Now each party is suing the other alleging violations. Colorado’s law is unique. Some Colorado lawmakers want open records laws to apply to messaging apps, including messaging apps with disappearing messages.

Colorado Public Radio News | What really happens behind closed doors at the Colorado legislature?

Briefing time for the alcoholic beverage industry in Texas. The Texas Attorney General is considering Opinion Request RQ-0004-AC from Jacksonboro. The Jack County Attorney wants clarification of what the Texas Alcoholic Beverage Code means when it prohibits an excessive discount. For example, if a package store advertises a bottle for $27 but rings it up as $11, is that an excessive discount?

Fresno, California is piloting new street vendor rules for Thursday through Sunday, 5pm to 8am. The new rules will require street vendors to be 100 ft from residential areas, 50 feet from the entrance or exit of a business and not within 10 feet of another street vendor.

ABC 30 | New rules to be enforced for street vendors in Tower District

Even if Legislatures aren’t passing divestment bills concerning China, pension systems are cutting investment exposure to China. CalSTRS is limiting its exposure to investments in China.

Deal Street Asia | CalSTRS becomes latest pension to cut its China exposure

 The Smart Surfaces Coalition  is a bipartisan coalition of mayors and 40 partners representing health, business, justice and more. So what options are there to cool cities? reflective, porous and green surfaces, along with trees and solar photovoltaic panels; can cool the air & reduce mold and flooding.

Governing | We Need Cooler Cities. Here’s How to Build Them.

To counter abortion restrictions 4 states are offering tax breaks for expectant parents. Georgia defined dependent to include a fetus to qualify for its dependent personal exemption. Utah passed a similar law. While Missouri and Louisiana incentivize donations to crisis pregnancy centers.

Route Fifty | After enacting strict abortion laws, many states are turning to tax breaks for expectant parents

The County of Miami Dade has hired the world’s first Chief Heat Officer. The CHO position was created in 2021 by Mayor Daniella Levine Cava in partnership with the Adrienne Arsht-Rockefeller Foundation Resilience Center. Miami is said to be the largest city affected by the extreme heat belt. The CHO also works to achieve the county’s goal of “achieving net zero emissions by 2050, envisioning a green economy driven by innovation.” Since Mami-Dade’s CHO was created, Phoenix and Los Angeles have also created Chief Heat Officer positions.

Governing | World’s First Chief Heat Officer Has Tips for Managing Risks of Extreme Heat

Thank you Harvard Law School Forum on Corporate Governance for breaking down the numbers on anti- esg legislation this year. 165 pieces of legislation in 37 states. 22 of these bills passed. That’s 13% for those keeping count.

Harvard Law School Forum on Corporate Governance | Right-Wing Attacks on the Freedom to Invest Responsibly Falter in Legislatures

 On July 20th Ron DeSantis sent a letter to the director of the Florida State Board of Administration instructing them to “initiate a review to examine how AB InBev’s conduct has impacted and continues to impact the value of SBA’s AB InBev holdings.” AKA let’s divest from InBEv because “I no like.” Gov. DeSantis also added, “It appears to me that AB InBev may have breached legal duties owed to shareholders, and that shareholder action may be both appropriate and necessary.”

The Hill | DeSantis asks Florida officials to review AB InBev assets following Bud Light scandal 

California sought to tax short term rentals to fund affordable housing projects. SB 584(2023 | CA) went no where. It was backed by construction unions in California and authored by a Democrat, but ran into this issue in the California House: wage and labor standards for projects. A good reminder that obstacles can pop up from unexpected places. Adapt and pivot.

Cal Matters | Another bill going nowhere fast

California is considering a bill that would permit night markets, like are common in Asia, to thrive in the state. The goal is to cut red tape and ease the permitting process for regularly occurring outdoor markets. AB441 (2023 | CA) You may think, wow, you’re sending me to the wrong link, but in California legislators are limited to the number of bills they can file, so the author withdrew this bill and is gutting AB441 to become the night market bill.

CalMatters | California Legislature could boost night markets

A ballot measure in North Dakota will place an age limit on Congressional candidates from North Dakota. The magic age? 80. No candidate can be elected or appointed who could reach 81 by the end of their term.

AP | Proposed ballot measure seeks congressional age limit of 80 in North Dakota

Miami Dade forgot to renew its local gas tax this summer. The local gas tax cannot be renewed until January 1st, costing Miami Dade $18 million in local revenue. The takeaway: details matter.

Miami Herald via Governing | Miami-Dade Forgets to Renew Gas Tax, Loses Millions

19 states have created state retirement plans for private sector employees.  The plans are free for participating employers and self-funded through retirement account fees. They say these plans boost state bottom lines and increase retirement security for their residents. Win-win.

Route Fifty | State retirement plans close savings gap and pad bottom lines

 Illinois Governor has signed the state’s Drones as First Responders Act, HB 3902 (2023 | IL) . It will allow drones to be used at events that are outdoors, open to the public, and hosted by the state, a county, a municipality, a township, or a park district for real-time monitoring and threat detection during outdoor events. It also allows drones to be used for infrastructure inspections, public relations events such as taking a photo of a local organization, and to assist with public safety response, such as locating victims or fleeing suspects.

Route Fifty | Drones enlisted for real-time monitoring of public events

Massachusetts has created the Massachusetts Community Climate Bank, a green bank dedicated to funding affordable housing. Funded with $50 million in state funds and designed to maximize investment in the reduction of greenhouse gas emissions from the building sector. The goal is to attract private and federal funding to retrofit buildings following the state’s long-term climate objectives and funding new construction of decarbonized buildings. While the initial focus will be affordable housing and promoting an equitable energy transition and to meet the needs of environmental justice populations, the state looks to fund other projects in the future.

Mass.gov | Governor Healey Announces Creation of Massachusetts Community Climate Bank, Nation’s First Green Bank Dedicated to Affordable Housing

Seattle University is the first university in Washington State to divest from fossil fuels. It is also the first Jesuit Catholic university in the country to to divest from fossil fuels and to focus on socially conscious investing. It follows “Pope Francis’ 2015 encyclical letter “Laudato Si’” calls for action on the climate crisis and “care for our common home.”’

The University pledged to make this divestment in 2018. It took 5 years to divest 100% from fossil fuels.

Seattle.edu | Seattle University First in the State to Divest from Fossil Fuels

Pennsylvania eliminated sales tax and gross receipts tax on cell phone service. It is estimated to be $62 million general revenue loss. The  policy argument is that cell service is an essential item.

PennLive | Pa. House passes bill eliminating taxes on cell phone service

Illinois ended its foray into private school tax credits by eliminating the item from the state budget, thereby effectively repealing the program.

Chicago Tribune

 New Hampshire is accelerating repeal of its interest and dividend tax. The tax will be phased out in 2025 instead of 2027.

New Hampshire Fiscal Policy Institute | Senate Modifies State Budget Proposal, House Concurs with Senate Changes and Sends Budget to Governor

Colorado’s HB23-1306 allows state legislators to block anyone, for any reason, on their private social media accounts. The bill only applies to a legislator’s social media accounts that (1) pre-date election (2) an account that is kept distinct from official action. This is a first of its kind law in the U.S.

Governing | Colorado Law Allows State Officials to Block on Social Media

A special session in Nevada will include legislation to fund the new stadium for the A’s that is in the works  at the site of the Tropicana Las Vegas Casino Resort on the Strip.

8 News Now | A’s stadium funding: Special session in progress as Nevada Legislature meets in Carson City

Connecticut repealed its marijuana investor tax credits. According to the Hartford Business Journal, the tax credit program had led to $3.1 million in cannabis industry investments. In lieu of the investor tax credit, cannabis operators can now deduct business expenses.

mjbizdaily | Connecticut repeals marijuana investor tax credit, permits new tax deductions

how can a state protect its law enforcement revenue? By protecting law enforcement according to Louisiana which passed a law requiring people to stay back 25 feet from law enforcement when called to do so or face a penalty of up to $500 and/or jail time up to 60 days. Opponents say it could could prevent recordings of police brutality or misconduct.

brproud | Stay back: Legislature OKs bill to keep people 25 feet from police

North Carolina is considering SB 636 (2023 | NC) that will allow the State Board of Education the ability to supersede high school athletic policies in public schools.  Why? Because a new high school athletic policy in North Carolina allows high school athletes to enter into name, image and likeness deals, effective July 1.

California passed AB886 (2023 | CA) that would require tech companies to pay a portion of their social media ad revenues, to be determined by arbitration, to the “journalism usage fee.” This fee will be paid to “news organizations producing content that is shared on their platforms.” The goal being to shore up California’s struggling news outlets.

Sacramento Bee | California Assembly ignores Meta’s threat, votes to pass the Journalism Preservation Act

A new study published in Nature Sustainability says that even with higher costs to cities for curbside recycling, ” the investment offsets the greenhouse gas emissions from non-recycled waste buried in landfills.”

Route Fifty | Curbside Recycling Offsets Garbage Emission Impact

Alabama Legislature agreed to provide Alabama taxpayers a one time $150 tax rebate. $300 for married couples. The total cost to the state: $393 million.

AP | Alabama lawmakers approve tax rebates of $150 per person

New Mexico has an official state smell, the smell of roasting chilis. What’s the official smell in your state?

Governing | What’s That Smell? New Mexico Has an Official State Aroma

Minnesota Legislature did not pass a sports betting bill after Democratic Senators began to peel off due to concerns about “social impacts of problem gambling and financial losses.” That meant the plan needed more Republicans but the Rs weren’t biting because they wanted the horse tracks included and the bill did not include horse tracks.

MinnPost | Hopes for legalized sports betting in Minnesota appear dashed again over tribes-tracks conflict

Minnesota became the 23rd state to legalize/decriminalize cannabis. A 320page-ish bill, House File 100 (2023 | MN) . Minnesota’s legislation will also allow for home growing. Legal sales will commence in 18 months.

MinnPost | MinnPost guide to the Minnesota Legislature’s 2023 ‘done’ and ‘undone’ lists

Minnesota Legislature gave Minnesota taxpayers a $1.15 billion one-time (inflation) rebate. That’s $260 for individuals, $520 for married couples and an extra $260 for every child, with a $1,300 maximum. There are income caps of $150,000 for household income & $75,000 for single filers.

MinnPost | MinnPost guide to the Minnesota Legislature’s 2023 ‘done’ and ‘undone’ lists

I was raised to question everything. Let’s dig into this…The Hill reports that InfluenceMap has traced the anti-esg movement to “a backroom campaign by the fossil fuel industry in states like West Virginia and Texas.” Internal documents allegedly seek to “: to tar moves by the financial sector to weigh the climate risks posed to the oil, gas and coal businesses as “discrimination,”” It started with legislation in West Virginia (the bill failed), then a white papers from the Texas Public Policy Foundation joined the fun, followed by State Financial Officers Foundation  and American Legislative Exchange Council. 

Financial minds are saying that their path led to anti-ESG policies costing states ” as large financiers elect to leave the public market, leaving municipalities and state pension funds with fewer, smaller options.”

The Hill | Documents reveal how fossil fuel industry created, pushed anti-ESG campaign

Threats against members of Congress are up 400% in the last 6 years.

NPR | Rep. Connolly’s aides injured in office attack have been released from the hospital

Rhode Island is moving toward free breakfast and lunches for all students. The Rhode Island Senate passed the legislation because data showed that nutritious meals foster better student outcomes. The bill author said, the state is either paying now and improving the state or paying later to address problems.

WPRI | RI Senate passes bill making lunch free at all public schools

@good

Minneapolis has added 1/4 cent sales tax dedicated to affordable housing programs. The sales tax increase is expected to add $1 billion to housing programs in Minneapolis.

AP | Twin Cities sales tax bump will fund affordable housing programs

In 1979 Oregon , the Legislature passed  Senate Bill 543 that required a bill analysis, a public document that explains what a bill does, should be written to be read by an 8th or 9th grader. This translates to the bill analysis being measured by a score of at least 60 on something called the Flesch readability test. Turns out the Oregon Legislature forgot about this rule, and its come up in 2023 as a means to enforce procedural rules. Republicans are trying to enforce the 1979 rule today.

AP | Hard to read? Oregon GOP boycott comes down to reading level

Where should stadiums be built? The Washington Commanders are on the lookout for a new stadium. The old stadium is in Washington D.C. on and owned by the Department of the Interior, and some would like the new stadium to return to Maryland suburbs. The argument is cities are for housing.

Governing | Football Stadiums Belong in the Suburbs

Manufacturers re-locating to Connecticut say the state’s long history of supporting a manufacturing workforce helped their decision. Connecticut points to its long tenured Executive position, Chief Manufacturing Officer, who reports directly to the Governor. Connecticut is the only state with a Chief Manufacturing Officer.

Governing | Connecticut’s Workforce Is Attracting Manufacturing Industry

The Nevada legislature is considering legislation that will support a new A’s stadium in Las Vegas with $500 million. The $500 million package includes tax credits and the creation of a special taxation district to help with stadium construction. It is thought the As will not move if the legislation does not pass.

Nevada Independent | Assembly leader: A’s stadium deal running out of time in Nevada Legislature

Illinois has the 2nd highest tax on cannabis at near 40%. California has the nation’s highest cannabis tax rate. Illinois also has seen only 48% move to legal cannabis sales. Michigan places a 10% excise tax on legal cannabis and has seen 75% of cannabis users move to the legal market. In 2022, this meant Illinois had cannabis revenue of $562 Million to Michigan’s $326 million.

My Stateline | Illinois’ marijuana tax revenue is the highest in the country, next to California

A federal proposal is calling for a 30% tax on the electricity used in crypto mining.  Digital Asset Mining Energy or DAME excise tax and would phase in after 3 years.

Engadget | White House proposes 30 percent tax on electricity used for crypto mining

Always fascinating when a new divestment pops up. This time the Norwegian Wealth Fund is ceasing investments connected to Myanmar because its human rights conflicts. Are you thinking little Norway? Norway has the North Sea and its oil. This fund is big- $1.39 trillion.

Pensions & Investments | Norwegian wealth fund blacklists more companies with Myanmar ties

Cuyahoga County, Ohio is considering prohibiting county contracts for businesses that engage in wage theft or payroll fraud. It will apply to businesses that have been penalized or debarred for violations within the last 7 years. County contracts can be revoked & revokees banned for up to 5 years if businesses are caught cheating workers out of wages.

The Economic Policy Institute found that 217,000 Ohioans are victims of wage theft annually.

Governing | Ohio County Considers Blocking Businesses That Defraud Workers

Revenue from old school sin taxes is shrinking according to this new Tax Foundation Study. Good news, the new excise taxes have the potential to fill the gap. The new excise taxes include: carbon, cannabis, alternative tobacco products, ride-sharing, and plastics. The tax Foundation says, “the revenues from a carbon tax alone could exceed the revenues from all other excise taxes.”

In Iowa private citizens or non-profit organizations can file ethics complaints against incumbent legislators alleging conflict of interest because of financial and personal ties. In this case Iowa Citizens for Community Improvement filed a complaint against a legislator who did not set a certain bill for hearing based on social media posts. The Iowa Senate unanimously tabled the complaint, and a Senator said this is just the case of a Senator who should have refused to serve in that capacity.

Iowa Public Radio | Iowa Senate panel takes no action on ethics complaints related to pipeline bill, Facebook posts

Alabama legislators are pushing a 4 bill economic development package which will offer more incentives than in previous economic development programs. The bills will also require greater transparency as to what benefits companies receive. Sunshine in Alabama. Gov. Kay Ivey calls the bill package- The Game Plan.

AL.com | Alabama Gov. Kay Ivey announces ‘Game Plan’ aimed at creating jobs

Add Montana to the list of Legislatures toying with censuring one its members. I’m so perplexed. I don’t have to agree with you, but I respect your first amendment right to free speech. Did the first amendment get repealed and I forgot?

The Hill | Montana GOP caucus calls for censure of transgender lawmaker

States are dedicating their cannabis revenue to all sorts of things including substance abuse education and treatment, reduce recidivism, education, supplement corrections, wildlife conservation, veterans, and state’s general revenue fund. Point being, the revenue can be dedicated to any number of sources.

News Nation | Marijuana tax dollars and how they’re spent in different states

Friendly reminder that this weekend is the annual sales tax holiday for emergency supplies in Texas. As preppers like to call it, the best weekend of the year. What emergency supplies are sales tax free this weekend in Texas? Lots from generators under $3000 to  first aid kits, batteries, flashlights, coolers and ice chests, tarps, portable radios, axes and hatchets, fire extinguishers, and smoke detectors.

Texas Comptroller | EMERGENCY PREPARATION SUPPLIES SALES TAX HOLIDAY

Milwaukee County is proposing harm-reduction vending machines stocked with opioid overdose treatments, fentanyl test strips and drug deactivation pouches for unwanted medications.

Route Fifty | Milwaukee County Set to Install Harm-Reduction Vending Machines

Oregon is providing child care assistance for construction workers. Only 4.2% of construction workers are women and 22% of construction workers will leave the industry shortly. There’s a shortage of construction workers and the U.S. Chamber of Commerce found that 27% of people who are not working say they aren’t looking for work because they need to provide care at home. Oregon says it is already helping with an increase of 28% of apprentices completing their programs with child care assistance.

Route Fifty | Oregon Provides Child Care Support for Construction Workers

Michelangelo’s David has been deemed pornographic by some Floridians. Governing explains other similar events like in George W Bush’s administration, John Ashcroft was not comfortable giving speeches next to two statues that detailed breasts so they covered the statues in drapes. Why not find the man another room to give speeches in?

Governing | A New Fig Leaf for Michelangelo’s David and Other Cover-Ups

Oregon wildfire victims want to re-classify their settlement as a non-taxable event for state tax purposes. HB3523 (2023 | OR)

California lawmakers want to create an ebony alert to alert Californians about endangered Black residents. While Black women account for 13% of the population, they account for 35% of missing women. SB673 (2023 | CA)

Minnesota wants to create an Office of Missing and Murdered Balck Women and Girls. HF55 (2023 | MN)

Governing | California Proposes Amber Alert for Black Women and Girls

Kentucky is set to welcome legalized sports betting on live professional and amateur sporting events at home race tracks is headed to the Governor. Sports gaming would be allowed at licensed race tracks, online through a website or mobile app. HB 551 (2023 | KY)

Blood Horse | Kentucky to Add Sports Wagering as Senate Approves Bill

Maryland is trying to figure out the tax structure for cannabis sales. The MD Senate favors a 9% flat sales tax with 5% of revenues going to local governments. The MD House favors an annual 1% increase in the sales tax with a cap of 10% sales tax.

WBAL | Senate recreational cannabis bill differs from House bill over taxes

Wallet Hub released its research on which states impose the most taxes on its residents and which impose the fewest taxes. The states with the highest taxes: NY, HI, ME, VT, CT & NJ. The states with the lowest taxes: AK, DE, NH, TN, FL & WY. What’s missing at the top in pop policy circles? CA is #12 and the bottom? TX is #29.

@NPR

WalletHUB | 2023 tax Burden by State

The Republican Governors from these 19 states: Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Iowa, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, Tennessee, Utah, West Virginia, and Wyoming ; have formed the Alliance Against ESG Investing.

DeSantis has a 7 point plan to combat ESG in Florida. He laid it out in his Alliance Press Release. Why does this sound like he’s trying to create his own group of self–identified super heroes?

• Prohibiting big banks, trusts, and other financial institutions from discriminating against customers for their religious, political, or social beliefs — including their support for securing the border, owning a firearm, and increasing our energy independence.
• Prohibiting the financial sector from considering so called “Social Credit Scores” in banking and lending practices that aim to prevent Floridians from obtaining loans, lines of credit, and bank accounts.
• Prohibiting banks that engage in corporate activism from holding government funds as a Qualified Public Depository (QPD).
• Prohibiting the use of ESG in all investment decisions at the state and local level, ensuring that fund managers only consider financial factors that maximize the highest rate of return.
• Prohibiting all state and local entities, including direct support organizations, from considering, giving preference to, or requesting information about ESG as part of the procurement and contracting process.
• Prohibiting the use of ESG factors by state and local governments when issuing bonds, including a contract prohibition on rating agencies whose ESG ratings negatively impact the issuer’s bond ratings.
• Directing the Attorney General and Commissioner of Financial Regulation to enforce these provisions to the fullest extent of the law.

Governor Ron DeSantis Leads Alliance of 18 States to Fight Against Biden’s ESG Financial Fraud

Texas Comptroller released a new list of companies that “boycott oil and gas.” Beyond the list, let’s look at the press release ripe with euro-shaming. Look, I’m biased being born in Europe to a Swedish citizen. But, bank shaming because the bank is European is going too far. We have recognized legal protections for national origins. I digress.

The statement goes on to say ““HSBC’s new energy policy is a prime example of a broader movement in the financial sector to push a social agenda and prioritize political goals over the economic health of their clients. HSBC’s policy clearly makes the firm a suitable candidate for listing under Texas law.” The economists that say this raises Texas’ bond costs have more information.

Texas Comptroller Glenn Hegar Announces Update to List of Financial Companies that Boycott Energy Companies

Turns out when Missouri legalized marijuana, it took tax revenue from nearby Illinois. The Show Me State’s 1st month total sales were $103 million. Stores across the border in Illinois saw sales fall by 30%. Sales in Missouri are also a lot more show me.  Missouri customers can smell and see the product before buying. In Missouri product can be delivered to your home and can be sold in a drive through. The Show ME State is customer friendly.

Missouri has 1/2 Illinois’ population and 2x the number of cannabis retail establishments.

The Telegraph | Missouri’s customer friendly cannabis cuts into Illinois market

Illinois HB1575 (2023 | IL) will lower the state’s gas tax to 19 cents per gallon and removes a provision linking the tax to the consumer price index.

Montana wants to reallocate cannabis tax revenue from funding for protecting open access to public lands and send the revenue to county road maintenance funds. SB442 (MT | 2023) The governor wants the revenue to go to public safety and other legislators want the marijuana tax revenue to go to the general revenue fund. weed and its tax revenue gets people talking.

Independent Record | 3rd proposal to scrap Habitat Montana’s weed tax allocations gets Senate nod

West Virginia Legislature passed a bill to protect gun sale financial transaction records from disclosure unless subpoena, warrant, and the data is is not singled out, segregated, or disclosed based on the assignment of a firearms code. What’s the consequence for a financial institution? state may disqualify an institution from the competitive bidding process or other official selection process.

Governing | West Virginia Ends Session With Bills on Education, Guns, PFAS

Washington State Legislature has a Sunshine Committee. As in sunshine is the best disinfectant. After the state Supreme Court ruled in 2019 that the Legislature is subject to the state’s Public Information Act, the Legislature stopped enacting the committee’s recommendations. The point? Sometimes it takes a court and its spotlight to bring the light.

Seattle Times | The Legislature’s Sunshine Committee has fallen into darkness

The Tax Foundation says that moving away from a gross receipts tax would be more tax friendly to businesses and consumers and necessary for a mobile economy. 7 states have gross receipts taxes. In 2020, South Carolina converted a local gross receipts tax into a tax on net income. The Tax Foundation infographics on the tax pyramiding that results from a gross receipts tax.

Tax Foundation | Does Your State Have a Gross Receipts Tax?

Kansas wants to limit pension use of esg principles. A common refrain in Republican legislatures. The fiscal note for the bill in Kansas notes that the pension systems will lose $3.6 Billion in returns if the bill were to pass.

Reuters | Kansas anti-ESG bill could cut pension returns $3.6 bln -analysis

The Massachusetts state auditor, a former state senator, has the power to audit the legislature. Her office is auditing the state legislature, which was last audited in 1922. The goals are to  “increase transparency, accountability and equity in an area of state government that has been completely ignored.”

AP | Massachusetts auditor announces rare review of Legislature

In the 1970s socially responsible investing included not investing in companies supporting apartheid. This sounds a lot like esg right? There’s a thought that trying to stop ESG is actually a desire to strop shareholder democracy, because you don’t want pensions casting crucial shareholder votes.

New York Times | On Wall St., ‘Socially Responsible’ Is Common Sense. In Congress, It’s Political.

Harvard Law School Forum on Corporate Governance published a new piece this week. The title says it all, The Liability Trap: Why the ALEC Anti-ESG Bills Create a Legal Quagmire for Fiduciaries Connected with Public Pensions. The highlights- the bills create a massive liability risk for any pension fiduciary or service provider; impose irreconcilable legal requirements; subject them to compliance with arbitrary and unworkable legal demands; and politicize state investments in a manner that empirical studies shows cause pecuniary harm. The article is a line by line take down of the bills.

“…two empirical studies have shown that participant/beneficiary trustees correlate with better fund returns, outperforming politicians and their appointees.”

Lake County, Illinois invested funds following state limitations on ESG investments & it was a winner for the county. The county chose to not invest in pharmaceutical companies that make opioids, because the budget drain opioids are on the county budget. The county also did not invest in firearms because of the mass shooting in Highland Park last July 4. Also no investments in Russian entities. “A quick review of recent history shows that companies that are bad corporate actors are not good investments in the long run.”

Crains Business | Commentary by Lake County chief deputy treasurer : Lake County invests public funds for societal good — and good financial returns

A group of legislators in Illinois have formed a legislative cannabis group to address equity in the cannabis industry in a business friendly way. Illinois’ recreational cannabis law grants “social equity” applicants—or those whose ownership consists of minorities, people with drug convictions or individuals hailing from disproportionately impacted areas– easier access to licenses.

Marijuana Movement | Illinois Lawmakers Form New Cannabis Working Group To Boost Industry Growth And Equity Focus

Wild and crazy is not something I think of as a midwestern ideal. However, this week in Nebraska a property tax bill was filibustered because the bill’s author took a strong stance on prohibiting care for trans youth. Leadership reached an agreement to bypass the property tax bill, but the majority of the chamber voted against the compromise. Kenny Rogers would have thing or two to say about this hullabaloo.

WOWT | Omaha senator filibusters Nebraska property tax bill to protest bill prohibiting trans care for kids

In 2022 Houston business deals that include ESG totaled $1.25 Billion. Nationwide the total of ESG related deals was $15 billion according to PitchBook Data, Inc. “Increasingly, businesses are realizing that prioritizing ESG can be good for the bottom line, for the planet and for employees. “

Innovation Map Houston | ESG has moved from sidelines to strategy — here’s what that means for Houston companies

Daylight saving time is slowly meeting its demise by winding its way through state legislatures. New Mexico could opt for standard time. SB 191 (2023 | NM) In Texas, bills like HB 1425 (2023 | TX) want voters to decide if they prefer sticking only to standard time or day light savings time. For those who know people in Arizona, Arizona stays on standard time.

KRQE | Daylight Saving Time bill passes first committee in NM Legislature

Minnesota’s Legislature is approaching expanded gaming & sports betting by putting the indigenous tribes in control. The state is not only moving to expand its gaming footprint but also offering online gaming. “Executives with the Minnesota Twins, Vikings, Wild, Timberwolves and Lynx signed a letter supporting the bill’s approach of partnering with tribes. Under the bill the major sports teams would not operate sports betting. “

MPR News | Sports betting bill at Minnesota Legislature would put tribes in charge

Vermont has 40 licensed Cannabis stores. The 14% excise tax revenue is meeting projections. The first month resulted in $329,000 in cannabis excise taxes. By December 2022, the monthly tax revenue was over $800,000. The first full year is expected to bring Vermont $16 million from the cannabis excise tax.

WCAX 3 | Cannabis tax revenue growing in Vermont

Florida Gov. DeSantis is working on legislation to ban ESG consideration in the municipal bond market. Why? Reports have said that fossil fuel divestment in states have increased municipal bond costs.

Bloomberg | DeSantis Proposes Barring ESG Criteria in Florida Muni-Bond Sales