Finance & Revenue

What’s happening? Florida Legislature, during a special session, was considering HB9A (2021 | FL). It didn’t go anywhere because the 2 chambers were at lagger heads.

Why is this important? The House added a provision that hasn’t been seen in any other state- it would require “fantasy sports teams to include at least seven players competing in at least five separate events” They also excluded college sports

How will this be important? 25ish states still have no laws on fantasy sports

Clay Today | Fantasy sports regulations bill dropped for Special Session

Miami Herald | Fantasy sports regulation bills appear dead in Florida until next year

What’s happening? Illinois is raking in more tax revenue from cannabis than it is from alcohol sales. In February and March 2021, cannabis accounted for $56 million, compared to about $39 million in liquor taxes.

Why is this important? Revenue estimates are delivering.

How will this be important? Cannabis represents a new revenue source as legalization spreads.

Green Entreprenuer | Illinois Makes More Money from Cannabis Taxes than It Does from Liquor Taxes

What’s happening? Fairfax County Police Officers Retirement System announced its 3rd commitment to blockchain investment

Why is this important? If we’re seeing pensions get into bitcoin, we’re seeing pensions get into blockchain

How will this be important? The number of bitcoin or blockchain entities are only growing.

Chief Investment Officer | Pension Fund Increases Its Blockchain Technology, Bitcoin Allocations

What’s happening? Currently $100 trillion in assets under management are committed to  Principles for Responsible Investment. Most are focused on the US, UK, Nordics, Germany and France. And, now Japan is being asked to step up.

Why is this important? More and more assets are adopting or leaning into ESG.

How will this be important? The new economy is a stakeholder economy that puts sustainability, how businesses treat their stakeholders and employees, and how businesses treat their community.

Bloomberg | Japan Urged to Push Pension Funds to Adopt ESG Principles

What’s happening? Missouri Legislature sent a gas tax bill to the Governor. It would annually raise the gas tax by 2.5 cents until 2025.

Why is this important? The pandemic hit gas taxes, but even before the pandemic, fuel taxes were anemic.

How will this be important? Working from home will continue in some form and the gas tax will continue to lag in revenue collection as fuel efficiency increases.

Missourian | Fuel tax increase approved by legislature, awaits Parson’s signature

What’s happening? Oregon is considering SB 719 (2021 | OR) that would set transparency requirements for state gathering COVID data.

Why is this important? Oregon’s current public information laws have an exception from disclosure for health investigations which has led to data being withheld.

How will this be important? Transparency of COVID data will only help the state with its message to vaccinate.

East Oregonian | Our view: Pass bill to ensure transparency about COVID-19–

What’s happening? By 2025 New York is expected to get 100% more revenue from sports betting than from cannabis.

Why is this important? The state comptroller estimates that this year legal cannabis will bring in about $20 million in tax revenue this year and online sports betting will bring in $99 million, a whopping difference of 395%. But cannabis will get a later revenue start, so the comparison isn’t exactly equal.

How will this be important? Sports gambling was legalized in NY within the state budget a tool that other states could pick up on soon. There remain plenty of states that have legalized neither of these streams of revenue.

Forbes | Mobile Sports Betting To Bring New York State 100% More In Tax Revenue Than Cannabis

What’s happening? Lousiana is considering SB 60 (2021 | LA)

Why is this important? Republicans say the state needs to do something because the NCAA has not. No university spoke against the bill.

How will this be important? Each state is or will tackle this legislative issue.

AP | Louisiana bill would grant image rights to student athletes

What’s happening? Big tech companies use your data and make money from your data. Some groups want to find ways that makes tech companies pay you for your data use, some groups want to impose a tax on those companies for that data use and dedicate the revenue for greater land use.

Why is this important? An ad hoc group of California scholars are studying the issue. There is a report. People will talk about it. And revenue raising is something states are skilled at.

How will this be important? How states choose to levy a fee (tax) for using your data will become a partisan issue.

@Businessweek

What is happening? California has approved allowing small business to receive a tax credit for their PPP funds. Unlike the federal tax help, California’s won’t apply to every business, it only applies if the business can show a loss of 25% or more during a three month period.

Why is this important? California passed bipartisan tax relief.

How will this be important? States are grappling with how to handle PPP funds, how to apply tax breaks, and how to fill in state lost revenue.

CBS San Diego | California Legislature OK’s Tax Break for Small Businesses

What is happening? The $247.7 billion New York State Common Retirement Fund has committed approximately $400 million to two funds. This follows its Sustainable Investments and Climate Solutions (SICS) Program. $300 million to Copenhagen Infrastructure Partners . $100 million to Excelsior Energy Capital’s inaugural fund, the Excelsior Renewable Energy Investment Fund I.

Why is this important? NY State Controller set a goal of transitioning its portfolio to net-zero greenhouse gas emissions by 2040

How will this be important? More and more states are either transitioning or making sustainable investing a choice for their pension members.

Chief Investment Officer | NY State Pension Commits to $400 Million in Sustainable Investments

What is happening? West Virginia is offering $100 for people, 16-35 years old, to be vaccinated. Funds will come from the CARES Act

Why is this important? Gov. Jim Justice, a Republican, credits young West Virginias as key to shutting down the transmission of COVID

How will this be important? West Virginia’s approach could be modeled in other states or other future pandemics

NPR | West Virginia Will Pay Young People $100 To Get Vaccinated Against COVID-19

What is happening? 7 Republicans in Congress are openly declining campaign contributions from Facebook, Google, Amazon, Apple and Twitter

Why is this important? Appears to be Phase 2 in the standoff between certain politicians and big tech. Phase 1 is the legislation that responds to big tech blocking users or content.

How will this be important? The wedge between these 2 sides appears to be increasing, more to come.

The Hill | Seven House Republicans vow to reject donations from Big Tech

What’s happening? Washington State became the 5th state to limit the private prison industry.

Why is this important? The Washington State legislation bans private prisons from operating in the state and looks to shut down an immigration detention facility that is privately run in Tacoma by 2025.

How will this be important? California, Nevada, New York and Illinois in passing legislation to reduce, limit, or ban the operation of private prison companies in the state. Every year more states will begin considering similar legislation.

@goodgoodgoodco | Washington Governor Jay Inslee just signed a bill into law banning private, for-profit detention centers

What’s happening? Arizona, like Massachusetts, first reached an agreement with each state’s tribes before passing legislation. Reaching an agreement with tribes first has been said to be the key factor to the bill passage.

Why is this important? This successful path can be replicated in other states with a tribal gaming footprint.

How will this be important? Sports betting legislation is passing throughout the country and will continue to, so why not look at how other states succeeded and take winning pieces to build your own strategy.

AZ Family | Arizona gives timelines for new gambling, sports betting in state

Rio Grande Guardian | Hinojosa, Huberty: It is time to legalize sports betting in Texas

What’s happening? California was considering AB 1163 (2021 | CA) that would have reinstated cities and counties’ ability to put soda taxes before voters. Political watchers say the bill died because of anti-tax sentiment.

Why is this important? Supporters of soda taxes point to Philadelphia and Seattle using soda tax revenue to provide food for those in need during the pandemic.

How will this be important? The complex nature of the issue and how soda consumption and food deserts intertwine is being talked about more. Look for soda taxes in food desert legislation.

Route Fifty | Another Soda Tax Bill Dies. Another Win for Big Soda

What’s happening? U.S. House lawmakers that were formerly local officials are forming a new caucus Congressional Caucus of Former Local Elected Officials. 1 in 4 House members are formerly local officials. The goal being to improve dialog between Congress and local governments.

Why is this important? is your state preempting local action? Would it help if your local officials who are now state officials had a caucus? Probably so.

How will this be important? As states and cities are at odds, the federal government could find more ways to provide direct to local government funding and assistance.

Route Fifty | House Lawmakers Form New Caucus of Former Local Officials

What’s happening? In 2020 California passed Fair Pay to Play Act SB 26 (2020 | CA) that allows student athletes to have an agent and negotiate business ventures that do not directly compete with their university’s endorsed products. Effective January 1 2023. Florida came next with SB 646 (2020 | FL) which will be effective in 2021. New Jersey SB 971 (2020 | NJ). Also following suit are Nebraska, New Mexico, Arizona, Michigan and Colorado.

Why is this important? NCAA jumped and created rules too but won’t be effective until the 3 divisions approve the rules.

How will this be important? Gone are the days of college teams having the upper hand on monitizing college athlete images. Leveling the playing – every discussion and article about this issue will be laden with puns.

Governing | States Move Forward on Compensation for Student Athletes

What’s happening? New Mexico has legalized cannabis for adults. It seems weird that the article mentioned for adults and that I decided to type it as well. Of course it is cannabis legalized for adults no state would legalize cannabis for toddlers. Retail sales will begin April 1, 2022. It is estimated to raise at least $20 million in tax revenue the first year, $380 million in sales, and create 11,000 jobs.

Why is this important? New Mexico is the 17th state to legalize. The numbers keep going up.

How will this be important? Every state has slightly different regulatory framework. Consider NM having added to the regulatory possibilities.

KCBD | New Mexico Governor, Legislature legalizes adult-use cannabis

What’s happening? Pension industry in Europe is being asked to educate its membership about ESG investments for pensions. Advisors say there is a disconnect between what people think is happening to their pension funds and what is happening to their pension funds. Such as members strongly supporting global warming initiatives but not have investments to that end.

Why is this important? The new economy plus transparency means people want to know that they are voting with their dollars.

How will this be important? The younger generations care even more about social impact issues, so consider us on a tricycle now so that by the time Gen Z gets to pension age we’ll have cycling shoes that click into peddles.

Pensions Age | Pensions industry urged to educate members on ESG investing

What’s happening? Esports has become a $1 Billion in sales industry. Add onto the revenue from events. Esports is big business and big sports that is entering the sports betting ethos.

Why is this important? Esports is starting to train like professional athletes too. Esports isn’t only kids in a basement.

How will this be important? Esports is big business that keeps growing.

@bloombergbusiness on @instagram

What’s happening? Oklahoma has created the  Innovation Expansion Program within its Department of Commerce to support manufacturers that are innovating and spur investments.

Why is this important? Th program began because Oklahoma wanted to help businesses emerge from the pandemic.

How will this be important? What happens in one state will eventually be proposed in other states.

The Oklahoman via Governing | Oklahoma to Use $10 Million to Boost Investment, Innovation

What’s happening? North Carolina is considering a sports betting bill SB 688 (2021 | NC). The bill will expand sports betting beyond the 2 tribal casinos and into online sports betting. NC Education Lottery Commission would run the show. At least 10 online sports wagering licenses would be available, but no more than 12. 8% tax on sports betting revenue. $500,000 license fee.

Why is this important? Many states are grappling with this very thing and they are all handling it differently. Lots of tools for our toolboxes, my friends.

How will this be important? If successful, it is another blueprint of how to pass sports betting a fairy red location.

Legal Sports report | NEW NORTH CAROLINA SPORTS BETTING BILL WOULD OPEN ONLINE MARKET

What’s happening? Nevada is considering SB 367 (2021 | NV) that removes the sales tax exemption for professional sports tickets. Professional sports tickets ahem been exempt from the liven entertainment tax since 2015. The tax applies to events with more than 200 attendees.

Why is this important? The raiders say the tax could harm expansion for the Las Vegas team.

How will this be important? All states are identifying new ways to impose new or amended taxes. Keep it in your memory vault.

Las Vegas Review Journal | Proposed ticket tax could block pro sports expansion, Knights, Raiders say

What’s happening? Minnesota legislators voted to increase the state gas tax by 5 cents. Republicans countered the bill with an increase in the sales tax for auto parts.

Why is this important? gas tax revenues have been in decline because of fuel efficiency, low gas prices and less driving during the pandemic.

How will this be important? ll states are grappling with declining gas tax revenues.

Pine Journal | Minnesota panel green-lights 5-cent gas tax hike for road, bridge repairs

What’s happening? Alabama S126 (AL- 2021) and Texas are both seeing alcohol to go sales moving through their legislative chambers.

Why is this important? The pandemic led Governors to loosen certain regulatory restrictions, which created a pilot program of sorts to test how will the state operate if we loosen these rules. Turns out, it will be A-OK. So now those looser rules are getting codified.

How will this be important? The new economy will continue to be a reassessment of the old rules. Just because we always did it that way, doesn’t mean that way was the right way.

AL.com | Alabama alcohol delivery bill awaits Kay Ivey’s signature

What’s happening? Florida Senate is moving SB138 (2021 | FL) that will use it’s $135 EV fee to create the Electric Vehicle Infrastructure Grant Program to help pay to install the charging stations.

Why is this important? The bill has an economic development component for the EV infrastructure building and will split funds between the Florida Department of Transportation and local governments, with counties getting 36% to make up for lost gas tax revenue.

How will this be important? Building out EV charging station infrastructure is big business. “This is going to create a very large industry,” said Sen. Tom Wright, R-New Smyrna Beach. 

Tallahassee Democrat | Florida Senate panel approves new fee to build electric vehicle charging stations

What’s happening? Colorado is considering the Natural Disaster Mitigation Enterprise, HB21-1208 (2021 | Co) that would add a $1.25 per every $1,000 in premiums to create the state-run natural disaster mitigation enterprise fund that would help communities finance necessary work to lessen or prevent future catastrophes. 

Why is this important? Mitigating disasters is big talk and big work in state legislatures.

How will this be important? The pacing of “disasters” seems to be increasing.

The Colorado Sun | Could a new insurance-premium fee prevent Colorado’s next big natural disaster? Some lawmakers say yes.

What’s happening? The Office of Management and Budget is set to reclassify the size requirements for Metropolitan Statistical Areas. In 1950s when they came up with the size of MSAs, the low end was 50,000. Times changed. There’s a lot more people in the US. Now, they want to change the MSA designation to 100,000 population for core cities.

Why is this important? MSA stays determines federal funding. If you lose your MSA status, you lose the funding access.

How will this be important? It will hit 6 cities in TX, 5 in CA and 9 in PA, among scores of others.

AP | Lawmakers fear turning 144 cities into “micropolitan” areas

What’s happening? Governing Column looks at what is important when governments build infrastructure. Turns out it isn’t just time and money. It’s also who owns the infrastructure, what it looks like (design matters) and connections.

Why is this important? Because often the choice is which costs the least, but in the end the project can cost more if it’s an eye sore, serves no purpose because it doesn’t connect people and communities, or is run by a 3rd party.

Why will this be important? Public Private Ownership is a perennial policy decision and works well with good actors. But, when the public turns on a project managed by a bad actor, its a costly policy problem.

Governing | What Are the Five Principles of Good Infrastructure?

What’s happening? Michigan legalized cannabis more than a year ago. mall cities are reaping the revenue benefits without raising existing taxes.

Why is this important? Cities benefit from license fees and tax revenue from marijuana with no impact to law enforcement activity or budgets.

How will this be important? When cities have little ability to rate taxes, new taxes provide a key revenue source.

Fox 17 | Small towns getting thousands of dollars in tax revenue thanks to marijuana sales

What’s happening? Illinois became the 4th state to take in more than $500 million in sports bets in a single month. Illinois came close to $600M for January.

Why is this important? Operator revenue (jobs) in January was $49.4 million. $7.2 million in taxes for the state. 39.5% of the state’s total handle came from basketball betting.

How will this be important? Not every state has legalized sports betting and as more states top $500 million in revenue for a month, the revenue numbers are enticing.

YogoNet & PlayIllinois | Illinois breaks sports betting revenue and handle records in January

What’s happening? Co courts blocked an end run around filibuster-ish rules. In the CO a member can force the reading of a bill in its entirety to take up time. Well, to be clever, and thinking that they found a loophole, the legislative leaders opted for speed reading by computer. The CO Supreme Court said- no, speed reading does not comply with the constitutional requirements.

How is this important? These tactics and court cases, led to the two parties to work together to find common ground. Statesmanship lived.

Why will this be important? CO courts may not have liked it, but maybe Texas courts thinks, yeah, that works.

AP | Colorado court: Speed-reading bills violates constitution

What’s happening? Overriding a veto, Maryland is the first state to tax digital advertising. Now, Big Tech is suing to stop the bill.

Why is this important? There’s big money involved. The MD bill will generate revenue like this:

• 2.5% for companies with global annual gross revenues of $100 million through $1 billion
• 5% for companies with global annual gross incomes greater than $1 billion through $5 billion
• 7.5% for companies with global annual gross revenues greater than $5 billion through $15 billion
• 10% for companies with global annual gross revenues exceeding $15 billion

How will this be important? Revenue source. New revenue source. New revenue source. It’s like a money tree for elected officials. Opponents say it violates the Commerce Clause and is discriminatory.

Government Tech | Maryland’s Digital Ad Tax Under Pressure from Big Tech

What’s happening? State and local governments will get an extra W$350 billion,   with $65.1 billion in direct federal aid for counties & an additional $1.5 billion for public land counties.

Why is this important? There are Dos and Don’t on spending. Do: health safety measures and PPE demands; payroll, vaccine distribution, small business needs, food, education, broadband Do not: bridge repairs

How will this be important? The feds are watching & will react if spending proposal is outside of COVD recovery.

Governing | Local Govs Will Spend Stimulus Relief in Different Ways

What’s happening? The Governor of Rhode Island is placing legalization in the state budget bill.

Why is this important? The Governor lays out his entire regulatory frame work.  25 marijuana retailers to be licensed each year. Licenses awarded on a lottery system, except 5 licenses are reserved for minority owned businesses. 17% sales tax rate on cannabis sales.

How will this be important? The Governor goes further to divvy up the revenue with 60% going to the state general fund, 25% would cover administrative costs and the remaining 15 percent would go to local governments.

Marijuana Moment | Rhode Island Governor Puts Marijuana Legalization Plan In Budget, Days After Lawmakers File Competing Plan

What’s happening? Virginia is poised to legalize cannabis, or this clever article points out, “Virginia is close to becoming the first Southern state to get a tax revenue high.”

Why is this important? The estimated revenue for legalized cannabis in Virginia is $698 million to $1.2 billion annually in economic activity and up to $274 million in tax revenue per year.

How will this be important? Virginia got to this point after the Governor created a commission to estimate the revenue potential. 12 states are currently considering some kind of cannabis reform legislation. States like New York, Connecticut, New Mexico and Hawaii could soon see legislation on governors’ desks.

CNBC | Virginia gets close to legalizing recreational weed as other states eye cannabis tax windfalls

What is happening? Texas businessperson, Mattress Mack, wrote an opinion piece about his proclivity to place sports bets, in states where it is legal. He pays taxes for those bets to those states. He wants to pay texas to Texas.

Why is this important? he supports sports betting legislation, like we’ve seen in other states, that has voter approval as step 1. For Texas, that will look like, HB 2070 /HJR 97, SB 736 /SJR 39 (2021 | TX)

How will this be important? Gambling in Texas has been decades long pursuit. It’s like when the “will they? won’t they?” moment of a romcom drags on for years and years.

Houston Chronicle | Mattress Mack: It’s time for the Texas Legislature to legalize sports betting

What’s happening? Athletes who are paid to compete in states, pay taxes for money earned competing in each of those states.

Why is this important? Only 4 jurisdictions have no jock tax. Florida, Texas, Washington and Washington, D.C

How will this be important? States are looking for revenue & everyone else is doing it.

KSAT | What exactly is ‘jock tax?’

What’s happening? South Dakota became the first state to pass sports betting in 2021 with the passage of SB 44 (2021 | SD) that allows for sports betting in Deadwood SD.

Why is this important? South Dakota is surrounded by states that have legalized sports betting, and voters approved it in November 2020.

How will this be important? The preemptive voter approval method used in South Dakota has been seen elsewhere like Louisiana. it works.

Sports Handle | South Dakota Lawmakers Send Sports Betting To Governor

What’s happening? Massachusetts has reached an agreement with a tribe, the Mohegans. Their agreement:

• Sports betting revenue will be taxed at 13.75%. iGaming will be taxed at 20%.
• The Lottery can operate 15 retail sports betting locations as well as one online skin. There will also be new Lottery-run sports betting venues in Bridgeport and Hartford.
• The Lottery can sub-license some of those operations to Sportech, but Sportech will not get operations or an online skin of its own.

Why is this important? The Governor is negotiating with tribes before the state has legalized sports betting and iGaming.

How will this be important? All eyes are curios to see if reaching an agreement with the tribes makes legislation as easier task.

Legal Sports Report | MOHEGAN, CONNECTICUT GOV. LAMONT REACH SPORTS BETTING AGREEMENT

What’s happening? RoundRock, TX Economic Development CEO says all the ingredients that made Texas economically attractive to business still exist. However, the true measure will be how government reforms the problems that were highlighted by the storm.

Why is this important? This is man issue pitting what is viewed as pragmatic business that wants certainty against policymakers who may prefer to blame over solve.

How will this be important? The response by policymakers will foreshadow how they handle other top tier issues (to solve or to blame?)

Patch | Round Rock CEO Message: Did The Storm Make Central Texas Less Competitive For Economic Development?

What’s happening? Iowa legislature is considering Senate File 402 (2021 | IA) that would prohibit economic development funds to tech companies that have been found, by a court, to have violated free speech.

Why is this important? “The conservatives are being censored by tech! The conservatives are being censored by tech!” That’s the policy mantra by the Iowa Republicans, the accuracy of which we’re not touching with a 10 foot pole connected to the Mars Rover. What Big Tech is saying is:

• don’t weaponize economic development
•  the proposed bill “perversely creates an incentive” for private entities not to prohibit or remove objectionable content in order to keep tax incentives

How will this be important? We can’t discount legislatures passing unconstitutional laws. We also can’t discount the ability for the voting public to agree with this legislation, which places restrictions on the free market and business operations.

Governing | Iowa’s Bill Against Big Tech Risks Economic Development

What’s happening? A new transparency benchmark for pension systems has been created. Meet the new Global Pension Transparency Benchmark.

Why is this important? This benchmark focuses on the transparency and quality of public disclosures, with quality relating to the completeness, clarity, information value, and comparability of disclosures.

How will this be important? Disclosing information in common terms is important. These experts point to CALPERS executive summary that’s easy to read and Quebecois pension fund Caisse de dépôt et placement du Québec  puts easy to read updates on its website. Communication is key.

CIO | New Pension Transparency Gauge Finds Serious Improvement Is Needed

What’s happening? Public Affairs schools are talking about cities taking into account historical inquiries in local budgeting.

Why is this important? In making budget decisions, local budget decision makers are taking the needs of previously disenfranchised members of the population into account when allocating dollars for the next fiscal year.  Lousiville, KY is doing this. Austin, TX has a Chief Equity Officer as does Fairfax County, Virginia.

How will this be important? The lessons of 2020 aren’t disappearing. The impact of systemic racism that Black Lives Matters highlights has made local government officials look at their actions from the taking of their property in redevelopment to inadequate budgeting.

Route Fifty | Equity Budgeting in Cities: Directing Dollars Where They’re Needed Most

What’s happening ? California Legislature is gearing up for a post-COVID world by ensuring that virtual components to legislative and regulatory hearings continues. AB 339 (2021 | CA)

Why is this important? New Normal is getting codified.  Virtual participation in hearings offers to level the playing field for all citizens who want to be part of the process.

How will this be important? Virtual hearings allows for closed caption options and language services bringing access to the process to more people. From those in need of services, to people who work, to those with small children. + Its being used as justification for broadband into rural areas.

San Jose Mercury News | California Might Make Virtual Meetings a Permanent Option

What’s happening? Maryland Legislature passed a digital ad bill, HB732 (2021 | MD), imposes a 10 cent tax on digital ads played in MD and targets companies that make more than $100 million a year selling digital advertising

Why is this important? The Republican Governor vetoed it. The Legislature overrode the veto. The opposition group is the Internet Association — a trade group representing Amazon, Facebook, Google.

How is this important? The messaging of this opposition is that we need digital ads because they allow small businesses and startups to easily and affordably access new consumers.

CNN Business | Targeting Big Tech, Maryland becomes first state to tax digital advertising

What’s the deal? Arizona is considering a comprehensive sports betting, race track Keno, online fantasy sports bill. The total revenue estimate per year is $42 M, with an 8% tax on new non-tribal gambling profit, which will go to the general fund. Money from a maximum 8% tax on tribal gaming profits goes to special state accounts and local governments.

Why is this important? Red Arizona is a roadmap of a diverse coalition: Tribes, Race Tracks, Professional Sports, but not on board is the Arizona Licensed Beverage Association which says restaurants and bars want a seat at the table to make up pandemic revenue hits.

How will this be important? The robustness of the coalition and the potential to bring the restaurants and bars on board expands your support base.

AP via Lincoln Star Journal | Arizona House panel advances bill allowing sports betting

What’s the deal? Louisiana Legislature passed legalized sports betting, but required parishes to vote to approve it. The November 2020 election had 55 of the 64 parishes voting in favor of sports betting. Now the 2021 Legislature is creating the rules for sports betting. Last year the Gaming board approved a 8% tax ons ports betting.

Why is this important? Other states are grappling with the mode and method to approve sports betting in their state.

How will this be important? A legislator doesn’t vote directly for sports betting, the legislator votes to all the voters to approve sports betting. There are still unanswered questions for the 2021 Legislature, such as will there be online sports betting? Will bets only be placed at casinos?

KATC | Louisiana lawmakers to set rules for sports betting

What’s the deal? The Utah legislature created a business sandbox. This is just a weird and fancy way of saying the state will “create a pathway for innovators to get a temporary reprieve from standing state rules that could impede or prevent a new idea from getting a real-world tryout.” HB 217 (2021 | UT)

Why is this important? All states are trying to figure out how to get the next big innovator to call their state home. The jargon answer- a regulatory sandbox to let business play. Maybe their experiences in sand boxes were better than mine, because I’m pretty sure other kids in the sandbox were bullies.

How will this be important? Eventually state will get it right and find that magic combo to lure innovation.

Desert News | Will the next Uber or Airbnb want to launch in Utah, thanks to this new business ‘sandbox’?

What’s the deal? Oregon is reversing course on its timber tax cut.

Why should we care about this? Know any organization that represents an industry to keep an industry benefit in place? States and cities are looking for revenue, and protectionist programs are in their vision among others. It gets better. Funding was also provided for state-funded Oregon Forest Resources Institute, annual budget of $4 million, worked to discredit climate research deemed harmful to the timber industry and appeared to skirt legal constraints against lobbying.

How can this impact me? A ProPublica investigation revealed that  timber interests have benefited from tax cuts that cost counties at least $3 billion over the past three decades. Add in the research from the Forest Resources Institute.. Lots of fingers in lots of pots

Oregonian via Route Fifty | ‘We Have Counties in Deep Trouble’: Oregon Lawmakers Seek to Reverse Timber Tax Cuts That Cost Communities Billions

What’s the deal? Cities are passing ordinances to pay essential workers, front line workers, grocery store workers more during the pandemic. In response, 2 grocer associations, Northwest Grocery Association and the Washington Food Industry Association, have sued Seattle for its hero pay.

Why should we care? Economists point to other grocers, like Trader Joes and Costco, that implement hero pay on their own and display it, are making a profit. Its an industry split- one side saying hey we’ve got this, we’re here for our employees; and the other side saying we can’t afford city mandated hero pay.

How can this impact me? In California, some grocers are closing rather than pay supplemental pandemic rates to employees. part of the opposition argument is that all essential employees should get this bump in pay, not just grocer employees.

Route Fifty | Grocery Groups Sue Over Mandated Hazard Pay for Workers

What’s the deal? Since the pandemic, Ohio and Iowa have made cocktails to-go & cocktail delivery permanent. This means restaurants and bars have access to delivery of their high profit margin items.

Why should we care? 13 other states are following suit. Delaware, Florida, Kansas, Kentucky, Maryland, Missouri, Nebraska, New Hampshire, New Jersey, New York, Oregon, Texas and Virginia.

How could this impact me? It’s the brain child of Hospitality Recovery Coalition. The Coalition includes Distilled Spirits Council of the United States (DISCUS) in partnership with the American Distilled Spirits Alliance (ADSA), the Council of State Restaurant Associations (CSRA), the National Restaurant Association and TIPS. Alphabet Soup most of us know.

Distilled Spirits Council | Cocktails To-Go Legislation Filed in 13 States, More Expected in Effort to Help Struggling Hospitality Businesses

Governing | A Chance to Liberate Booze Delivery — if Government Allows It

What’s the deal? Cities are requiring increased pay for essential workers during the pandemic.

Why should we care? Big chains are pushing back from adding $5/hr to their employees. Other chains, like Trader Joes, filed all pay by Seattle’s $4/hr to thank its workers.

How can this impact me? We’re watching the economic experiment. How if you treat your workers well, you’ll increase your profits. The numbers show it, the thinkers believe in it, and its a cornerstone of the new stakeholder economy.

Los Angeles Times | Hazard pay for grocery workers gets a big boost from L.A. But big chains are pushing back

What’s the deal? Texans for Fiscal Responsibility have their perennial request to end the state’s economic development programs and substitute in tax cuts.

Why should we care? Because “corporate subsidies” and “crony capitalism” are phrases that ring true with populist leaning crowds or on Tuesday’s then Orion and Jupiter are in alignment. Not to throw in corporate double talk, but you never know when this sticks, but when it does stick at 10pm on a Tuesday in May, it will stick hard and fast like bubble gum under a diner’s table.

How can this impact me? Even a stopped clock is correct twice a day. Knowledge is power, and knowing this keeps you from being blindsided.

Tyler Morning Telegraph | Group calls on governor, legislature to end Texas Enterprise Fund, cut taxes instead

What’s the deal? The pandemic changed the world. We know this. So, let’s accept it like the earth is round. It’s still ok to believe the earth is round, right? The move toward corporate social responsibility that began in the summer of 2018 by the Business Roundtable and accelerated with the 2020 pandemic is in full gear ahead for 2021 when economic develop deals will require diversity and inclusivity.

Why should we care? There’s a push to use words like resilience which has long been held to climate impact, weather events, or the capacity to deliver utilities. Now, with remote working and the after effects of 2020, resilience means economic resilience too.

How can this impact me? A University of Texas professor is talking about how cities, businesses and anchor institutions should consider the “good jobs strategy” developed by Zeynep Ton at MIT. Know who uses this strategy? H-E-B, Costco and Trader Joes, in which low-paid service jobs are re-envisioned as viable careers to the benefit of both employees and employers.

Route Fifty | Toward a More Inclusive and Resilient Economic Development Paradigm

What’s the deal? The federal government administered several rounds of PPP forgivable loan funding for businesses, and all the while some of the businesses that received PPP funding were also find by state enforcement agencies for violating COVID protocols.

Why should we care? Clawing back funding from a bad actor is catnip for politics. Its got the classic elements of someone who did something wrong, a righteous truth seeker, and recovering funds for the state. It is a trifecta of catnip delight.

How can this impact me? You never know when your partners, clients or potential clients or partners end up in this quagmire. Some creative lawmaker will find a way to apply a tax or fee to these businesses.

Governing | Millions Flow to Oregon Firms Cited for COVID Violations

What’s the deal? I have no idea what’s in the water in Florida but its producing a number of ways state elected officials can punish tech companies for twitter banning Trump. Up on deck next:  Republican Florida State Rep. Randy Fine and State Sen. Joe Gruters are calling on the state to divest “the $8 billion the state has invested in Twitter, Apple, Facebook and Google through the Florida Retirement System, which pays retirees with proceeds from the investments.”

Why should we care? Pensions divesting from the controversy du jour is an ordinary Tuesday in some states. Is it an effective tool? Or, will it come back to bite you like vampire?

How does this impact me? Chalk this up to a need for all industries to be proactive before they end up on the divestment circuit too.

Governing | DeSantis: Penalize Social Media That Blocks Politicians

What’s the deal? Seattle City Council unanimously approved additional $4 per hour for grocery workers during the declared pandemic.

Why should we care? Minimum wage legislation both state and local are all the rage. One even passed statewide in Florida with voter approval with a a Republican businessman supporting it.

Why does this matter to me? How essential workers are being defined is impacting everything from pay to hazard pay to vaccines and more.

Washington Policy Center | The Seattle City Council forces grocery stores to pay more for its workers

What’s the deal? American Gaming Association supports stimulus for tourism, meetings and conventions plus temporary liability protections from pandemic related lawsuits.

Why should we care? In the midst of this, the AGA also talks about sports better than is more than $21 Billion in gross wagers and $210 million in state and local tax revenue.

Why does this matter to me? 25 states have legalized sports bettering, most of the remainder are considering it.

AP | Virus aid, no new taxes top US gambling industry 2021 goals

What’s the deal? Legalized sports betting has happened for 2 months in Tennessee. 2 months garnered $312.3 million in gross wagers and $5.4 million in taxes.

Why should we care? States are looking for revenue. Estimates in Tennessee say annual revenue from online sports betting should reach $50 million.

Why does this matter to me? States are expanding sports betting and fantasy sports. Casino enterprises are gobbling up fantasy sports operations.

AP via Galveston County Daily News | Tennessee sports betting tax revenue hits $5.4M in 2 months

What’s the deal? Pensions, representing $1 Trillion in assets, have asked investors, BlackRock, to disclose political activities because of the Jan. 6th criminal acts at the U.S. Capitol. BlackRock gave $85,000 to 15 legislators who deny the results of the 2020 presidential​ ​election after the invasion of the US Capitol​.

Why should we care? Public pensions have been impacting ESG, divesting from assets that link to fossil fuel or bad actors, and now want more transparency in political activities from asset managers. The pensions say pausing political contributions to these politicians isn’t enough.

Why does this matter to me? Represent someone or some entity? Being a bad actor or seeming to support these bad actors does not align with the new economy. It is bad for investors when officials have rhetoric that destabilizes democracy. People are watching if you’re a bully who rocks the boat.

Washington Post | Pension funds demand BlackRock disclose its political activity in the wake of U.S. Capitol riots

What’s the deal? Every action has an equal and opposite reaction. Republican state legislators who supported overturning the Presidential election are facing that equal and opposite reaction.

Why should we care? Chairman are losing their power. Corporations are cutting contributions. Pensions are demanding disclosures for political activities from investment firms related to legislators who supported overturning the Presidential Election.

Why does this matter to me? If you’re in Georgia, 3 Senate Chairmen lost their top spots, an Oregon state rep lost all his committee assignments, and Minnesota passed a resolution condemning it. That’s the start. More to come.

Governing | Beyond Impeachment: Election Recriminations Continue Among Legislators

The sports: College and professional sports can be wagered

The license fee: $250,000

How many sports betting operations could operate in Texas? 5

Taxes:

• 6.25% per bet

The legislation : HB 1121 (2021 | TX )

Wyoming’s SF 56 (2021 | WY) will pick back up with legalizing fantasy sports.

1 year ago, Wymoning legalized VLTs (video lottery machines).

What would the tax structure look like for the VLTs?

• 20% tax rate
• Profits after taxes are 50/50 split between the bars and the gaming companies

Casper Star Tribune | Legislature moves to make legalized gaming permanent in Wyoming

What’s the background of crypto currency and pensions systems?

• 2018 Berkeley, CA announces a plan tp issue bonds using blockchain, the foundation for cryptocurrency
• Ohio for a while allowed tax payments by bitcoin
• 2 Virginia public pension funds have invested in a blockchain venture empowered to own cryptocurrency

This begs the question, could pension funds be natural depositories to warehouse, re-market and profit from cryptocurrency?

Governing | Could States Cash in on the Cryptocurrency Craze?

States are passing liability protections concerning the transmission of COVID, and 3 exceptions are at the forefront:

1. Gross negligence
2. Reckless misconduct
3. Conduct with an intent “to discriminate based on race, ethnicity, national origin, religion, disability, sexual orientation or gender identity”

Governing | The Biggest Issues to Watch in 2021

Who is pushing wealth taxes? “Left wing progressives”

What is a wealth tax? A tax on the market fluctuation of assets like homes, stocks, art

Why? “To  curb extreme wealth accumulation and fuel trillions in new public spending by targeting everything that income, property and capital gains taxes miss.”

How many states have proposed a wealth tax? 9 including California and Hawaii

What have the brains said about the wealth tax?

• “wealth tax in some countries seems more efficient to repel [the] rich than to effectively redistribute wealth.” – Alain Trannoy, a French economist

Do some states have constitutional protections from a wealth tax? Yes, New York’s prohibition on taxing intangible property is seen as preventing a wealth tax

Governing | The Impoverished Idea of a Wealth Tax

The Federal Transit Administration is adding $14 Billion for public transportation systems under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (CRRSAA)

How will the funding breakdown?

•  $13.27 billion to large and small urban areas
• $678.2 million allocated to rural areas and tribes
• $50 million allocated for the enhanced mobility of seniors and individuals with disabilities

Railway Age | FTA to Allocate $14B in COVID Relief for Public Transportation

Add St. Paul, MN to the list of cities to address racial and systemic inequities.

The ordinance would create the St. Paul Recovery Act Community Reparations Commission.

The goals of the Commission will include closing gaps in homeownership, education, employment and health care.

KSTP | St. Paul City Council to consider forming Black reparations commission

• SB 1 (2021 | KY) would limit Executive Orders to 30 days and require legislative approval to extend
• SB 2 (2021 | KY) would require a public hearing before new regulations could be imposed

What’s next for these bills? An anticipated veto + an anticipated veto override

WDRB | Bills restricting Kentucky governor’s emergency power pass legislature, head to Beshear’s desk

HB 241 (2021 | KY) combines fantasy sports regulation, online poker and online sports betting.

Didn’t Kentucky try this last session too? Yes, but they’re back and adding online poker to the mix

What entity would regulate sports betting? The Racing Commission (horse racing)

How would online sports betting work?

• online wagering
• mobile wagering
• wagering at approved sports venues in the state (hello! racetracks)
• can wager on professional and collegiate contests

IGB | Kentucky to reconsider online sports betting in new bill

Where: Oklahoma

What: SB 224 (2021 | OK) would establish that state law concerning masks would preempt local ordinances both on public and private property

From the bill’s author: “government forcing private property owners to comply under threat of penalty is beyond their delegated powers.”

KOCO 5 | Proposed bill would prevent cities, counties in Oklahoma from mandating masks

Which tax incentives did Houston upgrade for 2021?

• new property tax abatement program for developers who incorporate green stormwater infrastructure
  • Up to 10 percent against their property tax increases
• opened LEED incentives that have not been open for the last 10 years
  • 15 percent for platinum certification

Houston Chronicle | More plants, less concrete: Houston now will offer tax incentives for eco-friendly development

Cannabis Advisory Committee recommends that California roll back these rules:

• eliminate the $5,000 limit on the amount of pot that can be carried by delivery vans
• make it easier for small businesses to sell different products
• permit food and beverages to be served in cannabis lounges

All 17 of their recommendations are here: 2020 Annual Report of the Cannabis Advisory Committee

Kentucky is adapting to COVID positive legislators by permitting legislators to quarantine in their vehicles and vote from their vehicle parked on Capitol grounds.

It’s like a drive in but instead of a fun 80s movie, it is the Legislature.

Route Fifty | Kentucky Lawmakers Who Catch Covid Can Vote From Their Cars

The state: Missouri

The forms that the state won’t print: tax forms

Why? Cost savings and the majority of tax filers file electronically

What if you want to file a printed return? The taxpayer downloads and prints the form themself

Route Fifty | Seeking To Boost Savings and Safety, One State Eliminates Paper Tax Forms

• AI friendly cities support AI jobs in telecommunications, information technology, software and transportation with starting salaries over $100,ooo
• more jobs, more economic growth

What types of AI jobs are in San Diego, a city that has embraced AI?

• 82% of total AI workforce works with machine or deep learning that is fundamental to predictive analytics
• AI tools in image, speech or video recognition (46% focus of AI jobs)
• Natural language processing (46%)
• Robotics (24%)
• Autonomous vehicles (21%)

San Diego Union Tribune via Governing | San Diego Would Benefit from City Expansion of AI: Study

Where was there continual shock and awe for revenue this year? Cannabis. COVID left revenue holes and  COVID funds are funding new and diverse programs from buying hotels for homeless, county fairs, event planners, restaurants and small business relief, grant programs, property tax relief grants, and PPE buying programs. Legislatures are taking control over Governors who overstepped. Voters are expanding the taxation of recreational drug use.

I don’t want to call new taxes innovative. So, let’s say the tax people got creative, maybe they ingested some of the cannabis that is now readily available to test the tax system. Here’s the new taxes they came up with:  taxing IP revenue, collecting back taxes from online sales, streaming services, and Zoom.

Where: Massachusetts

The amendment: Would allow hemp farmers to sell their plants to legal marijuana dispensaries which allow hemp farmers into the CBD market

Boston Globe | Legislature extends a lifeline to Massachusetts hemp farmers

• 80House members will simultaneously convene from One Golden Center
• No guests on chamber floor
• Each legislator is permitted 1 essential staff member in the Capitol
• No Capitol visitors
• Face masks are required
• Social Distancing Required

Sacramento Bee | ‘Essential’ lawmakers begin session in Sacramento as COVID cases among employees continue

The State: New York

The legislation: A11129 (2021 | NY)

New York’s A11129 would:

• prioritize distribution of the vaccine to long term care facilities
• require long term care facility workers to be vaccinated for COVID, influenza and pneumococcal disease

The State: Tennessee

The legislation: HB13 (2021 |TN)

What would Tennessee’s HB 13 do? Prohibit state and local governments from “forcing, requiring or coercing” a person to receive a COVID-19 vaccination

State : Kentucky

What: BR 301 (2020 |KY)

How does BR301 change existing law that required immunizations in declared epidemic areas?

• Clarifies that nothing in state law requires immunization
• Removes language requiring immunizations in an epidemic area
• Named the Act: Ensuring Bodily Autonomy and Informed Consent Act

Where: New Mexico

What: HM 1 ( 2020 | NM)

What does HM 1 call on the Governor of New Mexico to do?

• adopt policies to promote nursing homes to use staff with acquired immunity
• adopt policies to aid retired people living at home to have groceries and other essentials delivered
• allow those who are not at greater risk of serious illness or death from coronavirus disease 2019 infection to immediately be allowed to resume life as normal
• adopt policies to open schools and universities for in-person learning
• adopt policies to resume sports, arts, music, cultural activities and extracurricular activities

North Dakota legislators approved a mask mandate with possible enforcement options:

• removed by state troopers
• charged with a misdemeanor
• be expelled from the Legislature
• could be found out of order by the House or Senate presiding officer 

Bismark Tribune | Some opposition brews to North Dakota Legislature mask mandate

Colorado Legislature convened with no mask mandate.

” a number of Republicans removed their masks while seated at their desks during committee meetings and on the floor”

AP | GOP aide sent home from Colorado Legislature had COVID-19

The Maine Legislature will convene in a civic center.

Bangor Daily News | What we can expect when the Legislature comes together

What is a patent box tax? A tax at a lower rate, usually, on income derived from IP

What type of IP revenue are we talking about? Software copyrights + patents

What’s the goal of lower tax rates for IP boxes?

• encourage and attract local research and development
• incentivize businesses to locate IP

Tax Foundation | Patent Box Regimes in Europe

Where: Michigan

What: HB6314 (2020 | MI)

What restrictions does HB 6314 put on local health departments? It says that local health departments can implement,ment different restrictions than state health department but that local restrictions cannot be more stringent that state restrictions

Missouri is crafting plans for its Legislature to meet remotely.

Which party controls the State Legislature? Democratic Party

How will public testimony be taken? 16 sites across the state will be accessible for public comment, a system set up by the Missouri Senate

The Columbian | In Our View: Plans for remote Legislature session advance

Ohio has banned dancing at weddings in an effort to control COVID.

Ohio’s Order also includes a ban on buffet food and requiring banquet halls to adhere to social distancing.

Why does this matter? The Governor of Texas press conference in Austin, TX today indicated most enforcement of COVID restrictions had been handled by the Alcoholic Beverage Commission.

Route Fifty | Ohio Bans Dancing at Weddings to Curb Covid-19 Spread

The state: Massachusetts

What type of tech does Massachusetts want to use? Bluetooth based tracking such as those developed by Apple & Google

Would MA continue with contact tracers too? Yes, an app would only bolster their efforts

Nevada has a similar program with a self reporting app based on bluetooth. How is the app going?

• App downloaded under 70,000 times
  • Less than 3% of the state’s adult population

Mass Live via Governing | Massachusetts Looks to Fund Bluetooth Contact Tracing

The State: Pennsylvania

How much federal CARES fund for COVID relief did Pennsylvania try to use to lower property taxes? $300 Million

How did this work through the Legislature:

• PA Governor and Republican legislative leaders agreed to the use of $300M to pay down property taxes
• PA Legislature passed legislation
• The Federal government rejected the use of COVID funds

What funding decisions are triggered for Pennsylvania lawmakers now?

• How to allocate $1.3 billion in remaining CARES Act money
  • Can only be used for costs related to the public health emergency
  • Cannot be used to fill revenue shortfalls
  • State law says that money will go to the 60 least-populated counties should lawmakers fail to agree.

PA Spotlight | Feds reject Pa.’s plan to spend up to $300M in stimulus money for school property tax relief

The Local Government: The Sacramento County Board of Supervisors

Other California Counties that have made the same declarations: Riverside, Santa Clara and Contra Costa 

What will Sacramento County do in response? Take a more active role when making policy and allocating funding to address longstanding issues around race.

Sacramento Bee via Governing | Sacramento County Might Declare Racism a Public Health Crisis

Indiana Legislature voted this month to convene its regular session in January 2021 with masks optional.

Vote reflected party lines. Republicans have super majority but won’t require masks.

When the vote occurred was the chamber open to the public? No

How many legislators did not wear masks? 2 sate representatives

How will the Legislature convene in January? The Senate will remain in its Chamber & the House will move to a larger state facility

Indianapolis Star via Governing | Masks Optional: Indiana Lawmakers Convene for Session

Who: Austin City Council

What: emergency tax incentive program

How would it work? Incentivize landlords into renegotiating commercial leases by offering commercial property tax reimbursements to landlords who renegotiate their leases and offer rent reductions to business tenants

Community Impact | Austin City Council eyes tax incentives in effort to rescue local businesses from pandemic closure

That’s the headline from The Cut. What it really means- Drug Revenue won the 2020 Election.

Here’s the big picture from Election 2020:

• Oregon becomes 1st state to decriminalize possessing small amounts of any drug | Oregon’s Measure 110
• Arizona, Montana, New Jersey and South Dakota voted to legalize recreational marijuana in nationwide push to relax drug laws

The Guardian | Oregon becomes first US state to decriminalize possession of hard drugs

NY Times | Taxes, Heroin and Statehood: A Glimpse Into This Year’s Ballot Measures

Route Fifty | Oregon Decriminalizes Hard Drug Possession, While Five States Pass Marijuana Ballot Measures

Not only did Florida increase the state minimum wage to $15. So did Portland, Maine.

Pre-COVID. This minimum wage ordinance had not been given the go-ahead by voters.

Voter Approval Rate: 60%

What else does the Portland Maine minimum wage ordinance require: Time and a Half pay for declared emergencies.

Portland Herald Press via Governing | Maine Voters Raise Minimum Wage and Approve Rent Control

Where: San Francisco

The voter approval rate: 65%

The goal of the tax:  address income inequality in the city

When does the tax apply? “businesses in San Francisco where the highest-paid executive employee earns more than 100 times the median pay level for the company’s employees in the city”

What will be the applicable tax rate of this surcharge tax? “0.1% and 0.6% of a business’ San Francisco gross receipts, with the rate rising in steps as a company’s pay gap grows beyond the 100-times-median-pay threshold.”

The anticipated revenue: $60 million to $140 million annually

Does a similar tax elsewhere: Yes, Portland, OR has collected a similar tax since 2017

Rute Fifty | San Francisco Voters Approve ‘Overpaid Executive Tax’