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

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

What other funds/systems have cut hedge fund investments?

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

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

State: Iowa

Legislation: SF 617 (2019 | IA)

Rulemaking by Iowa’s Racing and Gaming Commission:

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

Go to sample regulations for sports betting:

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

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

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

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

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

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

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

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

Governing | Should Cities Regulate How You Design Your Home?

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

Iowa is spending on public education by:

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

Virginia is spending on public education by:

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

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

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

Governing | Commentary | The Education Investment States Should Be Making

Where: Great Britain

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

Why? to address the climate change “emergency”

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

Reuters | British lawmakers demand their pension fund divests fossil fuels

Background: The Pew Chairtable Trust Report

Why is the PEW Report wrong?

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

TEXPERS REPORT: Pew Charitable Trusts Misleads On Texas Pension Funds

Where: Oregon

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

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

How would the allocations work for schools?

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

Any notable events in the process?

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

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

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

Play Pennsylvania | PENNSYLVANIA GAMBLING EXPANSION REVENUE

Where: Colorado

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

The legislation: HB19-1280 (2019 | CO)

Funding mechanisms:

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

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

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

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

While the legislative journey continues these amendments are being considered:

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

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

State: Lousiana

Legislation:  HB508 (2019  | LA)

How would beer delivery work?

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

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

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

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

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

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

Where: Ohio

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

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

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

Where: Florida

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

How did the ban function?

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

Why? What was the Governor’s rational?

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

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

City: Denver

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

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

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

33 State Attorney Generals are calling for federal banking reforms

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

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

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

  Governing | 33 State AGs Ask Congress for Marijuana Banking Reform

Where: Montana

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

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

The legislation: SB 92 (2019 | MT)

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

What entity is studying it now?  Fitch Ratings

How has alternative investments increased? tripled from 2007 to 2017

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

What were the overall returns before alternatives? 6.4%

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

Where: San Francisco

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

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

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

Have other cities banend cashless estbalishments? Yes, Philadelphia

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

Where: Georgia

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

What do I need to know?

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

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

Where is this complicated sounding program happening? California

What entities are in the private-public partnership?

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

How does this program work?

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

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

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

What states have attempted it in recent years?

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

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

• Arizona
• California
• Michiga

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

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

Where: New York City

The ban: No alcohol ads

Where does the ban apply: on any city property

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

Was this by ordinance? No, mayoral executive order

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

​

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

Daily Democrat | Soda tax loses its fizz in Legislature

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

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

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

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

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

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

Why is this important? NEW COURT RULING. 

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

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

Where: Oklahoma

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

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

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

What cities are doing this? Detroit & Denver

Governing | A New Gig in Government: Chief Storyteller

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

Why is this thinking outside the box important?

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

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

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

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

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

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

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

State: Colorado

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

What would this legislation do?

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

Denver Post | Colorado lawmakers introduce bill to legalize sports betting

Where: Los Angeles

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

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

5 Cities offering Opportunity Zone investments?

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

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

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

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

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

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

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

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

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

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

Opponents say the proposals do not:

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

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

East Oregonian | Ballot measures could tackle pension challenge

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What revisions are being made?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The opposition arguments:

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

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

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

What interests the bill’s author? NFL official data

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

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

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

Some form of marijuana legalization exists in 22 states, but growers have no banking protections from money laundering laws.

What does that means? Profitable cash business + lots of cash + no viable FDIC banks = target for criminials

The federal banking proposal: HR 1595 (2019 | 116th Congress) Secure and Fair Enforcement (SAFE) Banking Act

Why does this matter to states? There are state based banks. CA & IL are wading into figuring out state banking methods.

Governing | Momentum for Fixing Marijuana’s Banking Problem Is Higher Than Ever 

Pennsylvania pension forfeiture law would require elected officials to forfeit pensions if they:

• are convicted of a crime with a punishment of more than 5 years
• doesn’t matter if the crime is federal or state
• doesn’t matter if they pled guilty or no contest, or are found guilty by a judge or jury

WITF | Bill to expand public pension forfeiture law on way to Wolf 

Colorado Legislature could repal its 1992 TABOR that returns excess tax revenue to taxpayers.

HB19-1258 (2019 | CO) would, upon voter approval allocate ecess revenue to education and transportation.

Colorado Politics | Lawmakers plan to ask Colorado voters to end TABOR refunds (VIDEO)

Want to develop a specific location that many people would get to by ride share? Well, look to Illinois which may allow the imposition of ride share fee of $1 to rides to McCormack Place to fund the project development.

WBEZ | Bill Proposes New Fees On Uber, Lyft To Pay For McCormick Place Expansion

Texas Public Policy Foundation is tying “massive corporate property tax breaks for renewable energy projects” to available funding for schools.

TPPF wants to end Chapter 312 agreements.

3 Cities have ordinances that independtly review corporate tax incentive programs.

• New York
• Philadelphia
• Washington, D.C.

Governing | Do Corporate Tax Incentives Work? 20 States, and Most Cities, Don’t Know.

How did Tennessee’s HB 666 (20109 | TN) change in the legislative process?

• As filed- in person sports betting
• As amended- online sports betting only, regulated by state Lottery Regulators
• Revenue estimates for online: $21.6 million
  • 15% to local governments
  • 85% to schools via lottery proceeds
• Limit of 10 companies

News 5 Nashville | Sports betting bill would allow only online betting  

Louisiana Convention and Vistors Bureaus & Louisiana Travel Association are backing a tax on airbnb and other short term rentals.

Why? Level the playing field with hotels and motels

Does this shound familair? Yes, The CVBs and LTA are like taxis in their plight against ride share.

Greater Baton Rouge Business Report | Louisiana’s CVBs pushing bill to impose hotel tax on Airbnbs 

Alabama Governor signed the state’s first gas tax increase since 1992. The gas tax will increase from 18 cents to 28 cents over 3 years.

What will future increases to:

• the National Highway Construction Cost Index (NHCCI)
• withautomatic adjustments of up to a cent every 2 years

Montgomery Advertiser | Ivey signs Alabama’s first gas-tax increase since 1992 

New Mexico could become the 1st state to own marijuna dispencaries. 

Who is proposing government owned pot stores? 3 Republican Senators

What kind of bill was state owned pot shops added to? A bill about medicinal marijuana

Is ther revenue from state pot sales dedicated? Yes to fund employment & counseling programs in communities “disproportionately affected by past federal and state drug policies”

What rules are put in place under this state sale program?

• 17%tax on recreational marijuana sales
• possession of up to 1 oz
• Local governments can opt out but get no tax revenue from sales
• removes taxes on medical pot

AP | New Mexico bill would create first state-run pot shops in US

HB19-1055 (2019 |CO) would dedicated the annual $58 million in marijuana tax revenue to school infrasructure. 

How has the marijuana tax funded education in Colorado up to now?

• initially $40 million cap on revenue dedicated to education
• In 2018 90% of revenue was dedicated to schools
• 12.5% is set aside for charter schools

Education Dive | Colorado considers giving full $58M in marijuana tax dollars to school infrastructure

State : Connecticut

How would this work? Lottery operators would be able to take professional and collegiate sports bets

What frmaework would be in place?

• Recruit sporting events. Commissioner of Economic and Community Development would be required to seek partnerships with major professional sports leagues and governing bodies to bring sporting events to the state
• Permits integrity fees for sports leagues

Hartford Courant | New bill would let casinos, off-track sites, CT Lottery offer sports betting

What is an opportunity zone? offers a capital gains tax credit for long-term investments designated low-income census tracts to stimulate commerce and create jobs

What economic development issues have arisen?

• Opportunity Zones require no reporting
• Opportunity zones require no management to ensure the investments occur
• Operating as a method of gentrification rather than investment in low income infrastructure

Look for legislative and regulatory structures to be put in place.

Governing | The Problem With Opportunity Zones

The annual Texas Comptroller list of Divestment Statutes and related entities is available.  

Global Travel Industry News | Airbnb banned from Texas contracts due to anti-Semitic actions

Texas Observer | Airbnb is the Latest Target of Texas’ Anti-BDS Crusade

Utah Legislature’s HB 78 (2019 | UT) would require local governments to tell state legislators before they take a position supporting a federal lands designation.

Who exactly would local officials have to tell? An interim committee, the Natural Resources, Agriculture, and Environment Interim Committee

What are legislators saying? its not about approval, it is about coordination.

Salt Lake Tribune | The Utah House wants local governments to check with the state Legislature before supporting federal lands designations 

Utah is tying county jail funding to required policy disclosures including in HB 398 (2019 |UT):

•  annual reports on screening, assessment and treatment of inmates for substance use or mental health disorders
• creating a tax credit incentive for mental health practitioners to work in jails

Standard Examiner | Concerned about deaths, Utah Legislature ties jail funding to counties’ disclosure of their policies

• Removing Higher Ed from State Pension Systems
  • Univeristy Presidents in Kentucky want out because pension costs are increasing tuition.
  • Universities want out without immediately paying off their pension liabilities
  •  Universities want 25 years to pay down state pension liabilities
  • Universities would offer other retirement options for their employees, such as a 401(k)
  • Opponents say the solvency of the pension system is at risk
• Defer Pension Liability Payments
  • Illinois Governor is proposing a 7 year deferral
  • Opponents say Illinois could be the “first state in the modern era to be downgraded to junk status.”

Governing | The Drastic, Risky, Measures to Fix America’s Brokest Pension Systems

Los Angeles is considering tewo ride share tax proposals:

• taxing ride share rides 
• taxing congestion prices

What will it fund? 28 transportation projects for Los Angeles 2028 Olympic Hosting

Are other large cities taxing ride sahre? yes, New York, Philadelphia, Chicago & Washington, DC

Smart Cities Dive | Los Angeles Metro to vote on ride-hailing tax, congestion pricing

The Bill: Texas H.B. 2397  (TX | 2019)

What does an Opportunity Zone create?

• 25% tax credit for expenses to remodel, rehabilitate or build a structure
• 25% tax credit to purchase equipment or machinery for a building
• Minimum investment of $100,000
• Capped tax credit:  $50,000

HJR 12 (UT | 2019)  requires the  Utah Tax Review Commission to:

• positive and negative effects of the current incentives on the state’s economy
• identify any overlapping or redundant tax credits, tax exemptions, or incentives
• answer whether it is more effective than lowering overall rates for all taxpayers

Salt Lake Tribune | Legislature wants a review of state tax incentives to see whether they provide the economic benefits supporters claim

Who: Stephen Goldmisth, Professor of practice at the Harvard Kennedy School and director of the Innovations in American Government Program

Why: In response to the economic development incentive deal between New York City and Amazon

What are the alternatives to tax incentives?

• well-run, safe city
• good infrastructure
• excellent schools
• competitive tax rate
• project-based incentives, such as:
  • environmental remediation
  • street and sewer improvements
  • job training
  • transit expansion

Governing | Development Incentives That Make Sense

Iowa House Study Bill 198 ( IA | 2019)

The framework:

• betting on professional and college sporting events legal
• betting on daily fantasy sports sites legal
• casinos licenses to host sports betting on-site and online
• Racing and Gaming Commission regulation
• gambling addiction program
• 6.75% tax on gaming revenue

What amendments are being floated? 

• Sports Leagues want a integrity fee
• Lottery wanted to include sports bettings where the lottery is sold

New Mexico Governor Michelle Lujan Grisham created on Monday a 19-member PERA Solvency Task Force that will:

• include  pension officials, labor union heads, retiree representatives, & a bipartisan and equal number of legislative representatives
• make recommendations to close the $6 billion in unfunded liabilities by Aug. 30

Why the task force? a Pension reform bill that would have increased contributions from employees failed

Chief Investment Officer | New Mexico PERA Gets a Task Force

Albequerque Journal | Governor creates task force to study pension issues 

Kentucky estimates revenue from legalizing sports betting at $48 million per year if neighoring states do not permit sports betting.

If neighboring states legalize sports betting, revenue estimates are $20 million per year.

AP | Sports betting bill advances in Kentucky legislature 

Colorado Legislature is considering legislation to change business organization requirements for the legalized marijuna industry, including:

• repeal background checks for passive investors 
• repeal 15 person limit on the number of out-of-state direct beneficial owners
• repeal prohibition on publicly traded corporations from holding a marijuana license
• creates 2 new licenses: (1) controlling beneficial owners (2) passive beneficial owners

HB 1090 (CO | 2019) 

Westworld | Marijuana Bills Introduced in Colorado Legislature in 2019 

Arkansas:

• November 2018 54% voters approved sports betting + 4 casinos

Lousiana:

• November 2018 sports betting, by parrish, approved by 47 parrishes, failed in 17 parrishes
• HB 245 (LA | 2018) would have permitted sports betting at existing racinos

Texas in 2019:

• fantasy sports bills SB 731 (TX | 2019) & HB 1544 (TX | 2019)
• sports betting HB 1275 (TX | 2019) & HJR 61 (TX | 2019) 
• gaming
  • SB 731 & SJR 42 (TX | 2019) 
  • HB 1544 & HJR 78 (TX | 2019) 
  • SJR 41 (TX | 2019) 
  • HJR 67 (TX |2019)
  •  HJR 49 (TX | 2019) 
  •  HB 494 & HJR 36 (TX | 2019)

KTBS | Breaking down sports betting and daily fantasy sports across the Ark-La-Tex

The model legislation name: End Corporate Welfare Act

The states: Florida, Illinois, New York (S3061 ( NY | 2019), Connecticut Massachusetts and New Jersey

Governing | With Amazon Out of New York, Some Lawmakers Seek Multistate Ban on Corporate Tax Breaks 

Montana’s SJ 11 (2019 | MT) would require a study of:

•  legalization
• taxation
• public health and safety
• effect on state’s current medical marijuana program
• benefit from eliminating costs of current unregulated black market distribution 

ABC FOX Montana | 66 Session in 60 Seconds – Legislature to order marijuana study 

A substitute to Kentucky’s House Bill 175 (KY | 2019) reigns in the sports betting locations by:

• only horse racing tracks and the Kentucky Speedway to obtain a sports gambling license via an app
• the lcensing fee is cut in half to $500,000
• would exclude Kentucky college teams from DFS play

Regulation would look like this:

• sports betting regulated by the Racetrack Commission
• poker and DFS regualted by the Lottery Commission

Are they dedicating funds? Yes, to pensions

Paulick Report | Substitute Sports Betting Bill Filed In Kentucky; Racing Commission Would Regulate

HB 1214 and HJR 39 and companions SB 526 and SJR 24 would constitutionally dediate all of the sporting good taxes to state parks.

KXAN | Lawmakers may look to constitutional amendment to fund parks

Utah legislators move a bill to allow campaign funds to be sued for childcare.

Sound unusual? 

• 7 states permit it (some through rule making)
• 5 state legislatures are considering it in 2019

Daily Herald | Utah Legislature approves using campaign funds for childcare  

Unanimously Los Angeles passed an ordinance requiring contractors to disclose ties to the NRA, or its subsidiaries.

Governing | To Do Business With L.A., City Contractors Must Now Disclose Any NRA Ties

Who: American Federation of Teachers

What do they want? No teacher pension investments in private prison contractors

How did they reach this conclusion? AFT study showed 24 funds across 20 states hold more than $75 million in stock

Which Funds are they calling out? From CALPERS to TRS . The full list is here

Governing | These Pension Funds Invest Millions in Private Prisons

Most populous state per capita sales tax collections:

• #9 Texas ($1148)
• #29 California ($894)
• #5  Florida ($1208)
• #30  Illinois ($888)
• #31 Pennsylvania ($821)

States with the lowest sales tax collections per capita:

• Virginia ($469)
• Colorado ($531)
• Alabama ($545)
• Georgia ($549)
• Missouri ($590)

States with the highest sales tax collections per capita:

• Hawaii ($2,269)
• Washington ($1,959)*
• Nevada ($1,586)
• South Dakota ($1,225) 
• Florida ($1,208)

Tax Foundation | How Much Does Your State Collect in Sales Taxes Per Capita?

Legislator: Senator Bettencourt 

Bill draft: “prevent a public school district from using general fund money for a project like the $20 million water park”

Fine tuned legislation: school districts cannot use funds for “extravagences” not directly tied to education

Why? repsonse to  La Joya district Sports & Learning Complex  that includes a water park with three slides, a swimming pool, planetarium and technology lab. 

Texas Monitor | Houston legislator will try to outlaw future tax-funded water parks

Conencticut State Treasurer lists these options to address state pension shortfall:

• utilizing state lottery revenue
• pushing bond payments out further to focus on paying liabilities
• revenue from renting state facilities
• benefit changes

Chief Investment Officer | Connecticut’s New Treasurer Pushes for Pension Shortfall Remedies 

Where: Kentucky

How: 5 banks in Kentucky pooled $125 M to create an investment fund known as the Western Kentucky Infrastructure fund. The Kentucky P3 laws expanded in 2016 to include this Fund.

Why?

• Fund P3 projects such as:
  • state and local-level project
  • debt financing for projects
    • repair to roads, bridges, water and sewer systems
  • social infrastructure projects like student housing, treatment centers, & charter schools

Transportation Today | Kentucky banks pool $125M for public-private partnership funding

A federal appeals court unanimously ruled  to block a San Francisco ordinance requiring ads for sugary beverages to devote 20% of their space to a warning label.

Governing | San Francisco’s Warning Labels on Sugary Drinks Blocked by Court 

• Nevada
  • most overall revenue
• New Jersey
  • In last 6 months,  $1.2 billion sports bets placed in NJ
  • 2018 revenue: $94 million from sports betting
• Delaware
  • In last 6 months, $8.9 million in revenue from sports betting
• Pennsylvania
  • In 2 months, $2.5 million in revenue from sports betting
• Mississippi
  • In 4 months, $1 million in revenue from sports betting
• Rhode Island
  • $1 million in revenue from sports betting in 1 month of activity

States expected to legalize sports betting in 2019:

• Arkansas
• Connecticut
• Massachusetts
• New York

Governing | The Week in Public Finance: On Eve of Super Bowl, Sports Betting Heats Up in 7 States

HB 2/ SB 2 (TX | 2019) capping property tax revenue growth at 2.5% a year for local taxing entities.

Here’s what the Texas Public Policy Foundation said in response:

• look forward to working with legislators on other proposals to ” cut property taxes and provide greater relief”
• HB 2/SB 2 will offer taxpayers greater transparency and a stronger voice
• HB 2/SB 2 is a positive step forward and look forward to “securing the greatest relief possible”

TPPF Statement on HB 2 & SB 2 Property Tax Legislation

Dallas Morning News | Texas lawmakers announce bill to rein in local property tax increases

Center for Retirement Research at Boston College newly released report, Impact of Public Sector Assumed Returns on Investment Choices, finds:

• pension investments are riskier
• rates of return are optimistic compared to investment professionals

Virginia SB 1356 (VA | 2019) would:

• expand VA’s current Lottery Commission to include sports betting
• Permit betting on youth and collegiate sports outside the state of VA
• The state commission would operate its own facility
• The lottery would allow for online platform but would NOT permit online sports betting
• 95% of the revenue generated would be general revenue

NBC 12 | Bills to legalize sports betting in Virginia move forward

Vermont Republican Governo Scott backs a 92% tax on e-cigs.

Why? To prevent youth use and the health epidemic

Any notable points in his speech? Yes, linking e-cigs to opioids as health risks.

VT Digger |Scott backs 92 percent e-cigarette tax to curb youth use

Who is asking? Texas House County Affairs Committee Chair Garnet Coleman

What limits are there on county loans and grants of county funds for economic development programs,wehn the request extend beyond 10 years?

The request points to:

• a 10 year statutory limit in Chapter 312 in Section 381.004(g) that limist Chapter381 loan and grant agreements under Section 381.004(h)

RQ-0266-KP

Who is asking? Midland County Attorney 

What did they ask? Whether a county may provide funding to a school district for grounds maintenance, a iibrary, and law enforcement and funding to a hospital district for purchase of a mental health facility.

What’s the answer? 

• Hospital District: probably can buy a building as a mental health facility
• School District: the county will have to make some determinations on whether a county purpose is served

Why is that the answer from the Office of the Attorney General? A local government has to work its way through the 3 prong test in Texas Municipal League Intergovernmental Risk Pool v. Texas Workers’ Compensation Commission. (1) predominant purpose is public (2) public entity retains sufficeint control (3) public entity receives a returned benefit

KP-0237

The Association: Fantasy Sports Trade Association

New Association Name effective April 2019: Fantasy Sports & Gaming Assn.

Rational from Association President:

“Non-sports fantasy games, eSports and sports betting have gameplay similarities, shared vendors, shared customers and shared legal goals. We will build on our 21-year track record of helping to grow the businesses within these industries.””

NY Sports Journalism | FSTA Enhacning Name to Fantasy Sports & Gaming

Sports Business Daily | Fantasy Sports Trade Association Rebranding To Include Gambling

The Texas Comptroller has a new review of school finance in which he raises these issues with the current school finance system:

•  Property tax bills are rising sharply, a greater burden on businesses & homeowners
• Recapture keeps growing, accounting for more of overall funding.
•  Strong economic growth and current funding formulas ensure continued increase in local share  & recapture 
•  More school kids. especially low-income and other disadvantaged students, exert pressure on funding 
•  Look forward. Consider the inherent volatility and their long-term ability to grow 
•  Relative Local & State Shares. “State policymakers should weigh the establishment of a standard for the relative state and local shares of public school funding.”

States conetemplating creating state-run public bank to handle cannabis business accounts:

• California
• New Jersey
• Colorado
• Michigan 
• Washington

A new report commissioned by California says a state run public bank will:

• cost $35 million over 6 years to start up
• federal regualtors will still need to approve wire transfers
• profits would be likely for the state between 2050 and 2055

There are 2 successful state run pulic banks in the US:

• In 1919 North Dakota created a public bank for loans to farmers
  In 2016 American Samoa did it after commercial banks stopped lending to the island

Governing | A State-Run Bank for Marijuana Money? Not So Fast.