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. 

Massachusetts Governor tax proposal for sports betting and fantasy sports operations will :

• generate $35 million in taxes and licensing fees
• not require a company to ahve ties to a casino
• 10% tax for in-person betting
• 12.5%  for online wagering

Boston Globe | Here’s how the state’s sports betting proposal breaks new ground 

Who overwhlemingly used ESAs in Arizona?

• 70% by students in high performing schools
• 10 times as many students used ESAs in AZ from high performing schools as from low performing schools. 10 TIMES
• 58% were special needs students

The response from supporters of ESAs? Its because public schools do not address “autism spectrum”

Governing | Do School Vouchers Only Benefit the Wealthy?  

Requestor: Texas Board of Nursing

Question for the Office of Attorney General to answer: Can criminal records be disclosed during licensing issues because CHapter 411 of the Government Code has been amended since the previous OAG opinion GA-0919?

The reason to pay attention to this opinion:

• it has a broader contained question that could impact for all state agencies: Is there a duty on agenices about disclosure of criminal records in either Section 411.075 or 411.0765, Government Code.

RQ-0236-KP 

From the Texas House Committee on Agriculture and Livestock interim report on industrial hemp:

• Global market for hemp consists of more than 25,000 products in 9 submarkets
• 30 countries approve industrial hemp 
• 41 U.S. states and territories have an agricultural hemp program
• 2018 US hemp is estiamted at $1 billion market
• Economic growth of 16% in 2017
• Environmentally friendly

Recommendations:

• 1. Define industrial hemp

  2. Amend the definition of “marihuana” and “tetrahydrocannabinols” in the Texas Controlled Substances Act to exclude hemp and related products

  3. Align legislation, registration, fees, cultivation, and processing requirements with the minimum standard with 2018 farm bill

  4. Texas Department of Agriculture to establish rules and a regulatory framework for the cultivation, production, and sale of industrial hemp as food, supplements, ointments, feed, and fiber.

  5. Require robust pre-harvest testing 

  6. Allow naturally derived cannabinoids to be extracted

  7. Establish applications for institutes of higher education to obtain permits so they may grow hemp for research-related purposes

  8. Provide legal protections for growers and processors

  2017 Interim Report Hosue Committee Report on Agriculture and Livestock 

 Senate Bill 1221 (2017 | TX) required reporting of hotel motel taxes. It did not require posting on the web.

Nonetheless, the Comptroller will make reported information available online with downloadable datasets.

Texas Comptroller | MUNICIPAL HOTEL OCCUPANCY TAX REPORTING

Texas Comptroller has relased a new data tool that tracks financial and tax information of special purpose districts.

What data can be had?

• if it imposes an ad valorem tax
• if it imposes a  sales and use tax;
•  if it charges an assessment
• if it charges a fee
• are the outsstanding bonds in the recent fiscal year?bonds outstanding;
• gross receipts in excess of $250,000
• cash and temporary investments in excess of $250,000?

​Texas Comptroller | SPECIAL PURPOSE DISTRICT FINANCIAL AND TAX REPORTING

Economic and Small Business Development:

• Aerospace. conform deductions for the aviation, aerospace, and defense manufacturing industry to the costs definitions contained in the Federal Acquisition Regulations

• The House Committee on Economic and Small Business Development has been dissolved
• Economic Development jurisdiction rests with the House Committee on International Relations and Economic Development

Refresher: The recommendations of the Interim Committee Report by the House Committee on Economic and Small Business Development:

• Support higher ed. & medical schools adequately “as they are truly a breeding ground for innovation and future economic success”
• Do more to ensure IT certifications for students and workers
• Our economy must be diverse, including in responses to Harvey recovery
• Endorse policies that support Economically Targeted Initiatives 
  • this is academic talk for supporting policies/investments that provide some additional economic benefit to the state

What do I need to know about special districts and committees?

• The substantive House Committee was delted in HR 4, the House Rules.
  • Land and Resource Management will take over jurisdiction for municipal utility districts
  • Natural Resources will cover districts concerning water without a required subcommittee

Interim Committee Recommendations from the Special Purpose District House Committee:

• The threshold to dissolve a special purpose district should be lower than the current 75% of landowners
• Require dissolution plans from district boards
• New template bill language for Municipal Management Districts  at page 41

What question is the Texas Attorney General answering?

Is any portion of the Permanenet School Fund spendable? If so, how much & how can it be spent?

Why is this question being asked? because the Legislature has not expressly said the PSF is nonspendable

The answer: The Texas Constitution article VII, section 5says the Legislature cannot appropriate any portion of the PSF. The only thing that can happen from the PSF is making distributions that are specifically permited and only within a set period of time.

KP-0229 (2019)

Retirement Systems of Alabama is the sole owner of CHNI LLC, that owns 68 daily newspapers and more than 40 non-dailies plus websites in 22 states.

AP | Alabama pension fund now sole owner of local newspaper chain

California has marijuana tax revenues for a year. Here’s a look at the revenue:

• the revenue estimate: $1 billion in revenue a year
• the 1st full year of revenue: $471 million in revenue

3 Reasons given for lower than estaimted revenues:

• Complex regulations
• High taxes
  • An example in Los Angeles:
    • 15% state excise tax
    • 10% recreational marijuana tax by the city of Los Angeles
    • 9.5% in sales tax by the county and state
    • Totaling a markup of more than 34%
• Cities banning cannabis shops
  • 20% of cities in California — 89 of 482 — allow retail shops to sell cannabis for recreational use
  • In 2018, 64 California cities and counties that voted on cannabis ballot measures
    • 8 banned the sale of cannabis or turned down taxation measures
    • 7 allowed sales
    • 49 approved taxes on pot businesses

Governing | Legal Pot Sales Fall Short of Expectations in California

Where: Arkansas

What is Arkansas legislature set to consider: Education Savings Accounts + Education Scholarships

What is the opposition saying?

• divert state tax payments
• “Call it what you will, these are school voucher programs”
• “It would be like a law allowing me to divert my state tax money to Planned Parenthood to finance abortions.”
• “public money laundering scheme”
• “I don’t mind continuing to send dollars to public education, but I do mind subsidizing unaccountable private education for those who reject it.”

Arkansas Times| Editorial| Euphemism watch: ‘Education savings accounts’ law means school vouchers

Connecticut State Comptroller Kevin Lembo launched a new pension transparency website.

The details about how the website operates:

• real time updates (real time = every pay cycle)

What data is disclosed:

• How many retirees in the state system
• How many of those retirees are still living in Connecticut
• Average pension earnings
• How much the state paid toward state employee pensions in a given year
• the average pension at $36,826
• top earning pensioner

Yankee Institute for Public Policy | Comptroller Releases New Pension Transparency Website

Michigan Govenror Snyder vetoed a fantasy sports bill, The Fantasy Contests Consumer Protection Act, because:

• it was part of a package of gambling bills (including internet gaming)
• there are unknown factors (hint: revenue. will schools lose lottry funding?)

HB 6420 (2018 | MI)

Veto Statement on Fantasy Sports HB 6420 (2018 | MI)

Michigan’s outgoing Governor vetoed the Legislature’s a trio of gambling bills that also included internet gaming:

• authorized online gambling in Michigan through Detroit’s three casinos
• and via out-state tribal casinos

Highlights from the veto statement:

• Kudos for getting stakeholders too agree- but that’s not enough
• Not enough Data to know if the revenue will be there
• Too many budget concerns
• This coud take revenue from the lottery which funds public education
• Cannot justify more gambling, if there is also a concern about lost revenue for public education

Veto Statement MI Governor Snyder HB 4726, 4727, 4728 (MI | 2018)

Crain’s Detroit Business | Snyder vetoes online gambling, fantasy sports betting bills

Six months into fantasy sports legalization in Pennsylvania revenue is:

•  $3.24 million for November= $486,000 in tax revenue
  • Up from the initial month of May $1.33 million & $200,000 in tax revenue
• Revenues increased during football season

Fantasy Provider/Revenue/State tax

DraftKings / $1,749,422.06 / $262,413.31

FanDuel / $1,420,165.49 / $213,024.82

DRAFT / $46,570.08 / $6,985.51

Yahoo Fantasy Sports / $20,792.03 / $3,118.80

Fantasy Draft / $2,310.40 / $346.56

Sportshub Technologies / $1,297.20 / $194.58

Boom Fantasy / $603.77 / $90.57

Full Time Fantasy Sports / $0.00 / $0.00

Fantasy Football Players Championship / $0.00 / $0.00

Total / $3,241,161.03 / $486,174.15

LVB | May, sports betting brought in about $1.33 million and $200,000 in taxes. 

Michigan Legislature expanded the definition of ” qualified new job” for its state economic development programs to permit the hiring of out of state employees.

The definition still requires 75% of hires to be from in-state

Detroit News | House OK’s state tax incentives for firms hiring out-of-state workers

Viriginia’s Joint Legislative Audit and Review Commission found Virginia’s tax credits & tax incentives ineffective but a free market think tank and watchdog group both find grants ok.

Why are grants better?

• More economic benefits to the state from grant programs targeting “businesses that sell most of their good or services out of state, pay high wages and rely on local suppliers”
  • like manufacturing
• more economic benefits from programs that require job creation and capital investment
  • a requirement in the Virginia grant program

Watchdog.org | Virginia study: State’s tax incentives are ineffective

Alaska’s Permanent Fund is looking for approval to offer incentive pay for the state employees that manage the portfolio.

The touted benefits:

• retain top employees
• recruit talented managers

Why does this matter? Alaska has shift investments from private managers to state management.

The incentive target: up to 50% of investment managers’ salaries

KTOO | Alaska Permanent Fund looks to pay investment managers incentives 

In early 2018, Norway raised its 1922 sugar tax by much as an 83%.

Norwegians tax all sugar containing products.

The 2018 increase increased the total tax on chocolate to nearly $2 per lb.

Is there an economic effect? Yes, Sweden sees an increase in purchases by Norwegians for candy during the holidays.

Norstjernan | The benefits of the candy tax 

The question for the Office of Attorney General? Can a company that has “contracted with a county to collect amounts owed to a county’s court, charge a fee for the use of credit cards by the defendant to pay those debts?”

Who is asking for this opinion? Cooke County Auditor

What’s the background?  Opinion KP-0095 looks to say that the fee can be charged by 3rd party vendors & counties are excluded from surcharge fee prohibition in the Business & Commerce Code.

RQ-0261-KP

HB 494 (TX | 2019) & HJR 36 (TX | 2019) would set up this gaming network:

• Limited to Jefferson, Galveston and Nueces Counties
  • The Jefferson County location requires commissioner court approval
• Oversight by the Lottery Commission
• Limits gaming to 9 casino licenses 
  • including 3 horse/dog tracks in Harris and Bexar Counties
• The State Gaming Account created
• funded by 18% tax on a casino’s gross gaming revenue
• windstorm funding:
  • lesser of 50% of revenues OR amount needed by TWIA for insured losses and operating expenses
  • Held in the CATASTROPHIC FLOODING ASSISTANCE TRUST FUND

ABC 13 | Could casino gambling become a reality in Houston and Galveston?  

WHO & WHERE: City of Ft. Worth, its firefighters & police officers

WHAT: A compromise to resolve its pension fund stability

HOW does the compromise look?

• 4.5% cost to taxpayers
• 2.9% cost on local government employees
• 4 years could bring escalation, if the fund iunder performs
• cost of living adjustments emain as they are
• unfunded liability will be reduced
• Approved by City Council 
• next step: approval by employees in the plans

Fort Worth Star Telegram | Fort Worth reaches pension compromise. Will employees approve it?

State: Iowa

Legislation: HB 2481 (2017-2019 | IA)

What would HB 2481 (2017-2019 | IA) do?

• Extends a sales tax increase of 1 cent
• Dedicates the revenue from the increase to property tax reduction
• Adds $981 per pupil to use toward infrastructure in 2019, increasing to $1,495 per pupil in 2050

Des Moines Register | Editorial: Iowa Legislature should extend sales tax for school infrastructure 

The Georgia Department of Revenue has billed Uber $22.1 million for sales taxes.

What have other states done? It varies. Most levy no tax.  Alabama and South Carolina impose % ride fees.

WSB TV | Your next Uber, Lyft ride could be more expensive thanks to tax bill 

Who: The  Public Pension Management and Asset Investment Review Commission

Where: Pennsylvania

What takeaways:

• investment managers have underreported fees by $3.8 billion due to a charge called “carried interest,
• able to identify at least $3 billion in savings

Tribune Democrat | Public pension commission eyes cost-saving measures

Michigan bcame the first midwest state to legalize recreational marijuana

Michigan is the 10th state (plus the District of Columbia)

What does MI’s law look like?

• carry up to 2.5 ounces, highest recreational carry limit in the nation
• 10 ounces & 12 plants at home
• applications for sale licenses begins in 2020
• 10% tax on all sales is planned

The Hill | Recreational marijuana officially legal in Michigan

New rules for fantasy sposrts betting have been released and include:

• FEES
  • all operators will be charged a $500 permit fee
  • additional fee of $5,000 for operators with revenue up to $49,999
  • or an additional fee of  $50,000 for operators who have a gross revenue of $250,000
• DEFINE FANTASY SPORTS BET
  • bets would have to be based on “actual individuals participating in real competitions or athletic events,”
  • limit individuals to 1 user name and 1 account
  • No credit for sports betting
  • No transfering funds to other players
  • 5 day window to draw funds from a player’s  account
  •  operators would have to provide proof that they maintain their equipment
  •  annual audits
  • restrict the operators from mingling money from bets with other accounts
  • Statistical information that could affect fantasy sports is treated as non-disclosable
  • no betting on high school sports
  • no betting by people barred from casinos
  • no underage bettors
  • Complaints: response within 10 days, retained for 7 years

New Jersey.com | New Jersey proposes new rules for fantasy sports betting

Texas Piublic Policy Foundation in What’s Next for Texas’ Rainy Day Fund? raises these issues with the Rainy Day Fund:

• Voters approved 2 reasons for the Rainy Day Fund: disaster & deficit reduction.
• 30% of the $11.6 billion in Rainy Day Fund expenditures since 1990 have gone to those 2 things
• The Rainy Day Fund Needs these 3 fixes:
  • ​4/5 vote by each chamber to access the fund
  • the constitutional limit should be reduced from 10% to 7%
  • excess severence taxes should be tax relief.

Orgeon has a “kicker tax.” And, only Oregon has a kicker tax.

What is this kicker tax rebate? “The kicker tax rebate is triggered when tax revenues for a two-year budget cycle come in more than 2 percent above economists’ forecast from the start of the cycle.”

Oregonians Tax Rebate = 2 year revenues 2% above forecasts

Seattle Times | Might Oregon kill ‘kicker tax’ rebate to help education?

The Texas Public Policy Foundation raises these criticisms of a LBB Fiscal Size Up chart on page 205 that lists school funding sources from 2010-2019:

• The chart includes 1 time federal funding in 2009
• If one time federal funding were not included the drop in funding would be less
• it excludes local proerty taxes funding local bonds for schools
• it excludes TRS payments
• Texas doesn’t want to be NY and CA which have:
  • worse student achievement for minority children and
  • worse economic growth than Texas.

Included in this is that the following items are untrue:

• “hardworking families and businesses — don’t spend enough on public schools at the “state level;”
• poor school districts are hit hardest by underfunding; and
• if taxpayers just spent much more at the “state level,” then student outcomes would be improved.

TribTalk | What the pesky little chart left out of the public education tax picture

Social Divestment & ESG investing, a strategy based on an asset’s environmental, social and governance factors, by the numbers:

• $23 trillion globally in ESG investments
• 600% growth in the last 10 years
• 7  U.S. pension funds that signatories to the U.N.-supported Principles for Responsible Investment
  • What are the Principles for Responsible Investment? Calls for “certain factors such as climate change and human rights can affect a company’s performance and should therefore be considered alongside more traditional financial factors”
• fees in the ESG funds are roughly 100 basis points higher than their counterparts
• State Examples
  • ​MA lost $79 million on its $1.6 billion fossil fuel holdings from 2012-2017
  • MA would have gained $1 billion in ananti-fossil fuel index fund
  • CA created a division to “monitor ESG investing across its entire portfolio”
  • The purpose is to assess the fund’s future exposure to environmental, social or governance dangers

Governing | Politicizing the Portfolio. 

Why do Texas pension systems fail to meet the returns of low cost index funds?

• Texas pension funds hired the wrong outside fund managers
• real estate invetments by pensions are harder to manage
• alternative investments by pensions take more management power and cost more to manage
• pensions also report their performance before feesa re taken out, so we get a false sense of what’s happening

Dallas Morning News | Scott Burns: Texas pension funds don’t measure up to low-cost index fund

Ohio’s State Treasurer spearheads an inivitative to allow businesses to pay taxes via it coin. 

• Ohio is the 1st state to accept bitcoin for tax payments and may make the state a 
• On OhioCrypto.com 23 Ohio taxes can be paid via bitcoin
• Bitcoin tax payments will be limited to Businesses
  • After a successful pilot with businesses, then the bitcoin tax payments will open for individual OH taxpayers
• FLORIDA in May announced a similar plan but has not launched the initiative for bitcoin tax payments

Crypto Currency News | Ohio Accepts Bitcoin for Tax Payments: A Much-Needed Silver Lining. 

Texas Public Policy Foundation says educational savings accounts will:

• help economically disadvantaged urban kids with underperforming math & reading scores
• parents could choose an education that meets the child’s unique  needs
• Texas should have more than 46% of urban, economically disadvantaged kids prepared for post high school

TPPF | How Education Savings Accounts Could Help Texas’ Most Vulnerable Students Succeed

Expanding Arizona’s Educational Savings Accounts to include educational costs for:

• children with special needs
• foster children
• children with parents in the military
• children in the poorest-performing schools

Failed 65:35

AZ Central | ‘Echoing at the state Capitol’: Arizona Prop. 305 to expand school vouchers defeated 

The ruling by the 5th circuit affirms the US Department of Education $33 million fine for Texas cutting special educaiton funding by $33 million in 2012.

Some say the fine should be paid through the Rainy Day Fund.

Some say Texas will not have to pay federal legal fees if it waives its right to appeal.

San Antonio Express news | 5th Circuit delivers expensive message to state 

97% of the total $8.73 illion in local bond propositions passed in Texas on November 6, 2018.

What was the largest bond proposal to fail? San Angelo School District’s $153 million proposal.

Bond Buyer | Texas voters approved almost all the bonds on local ballots

Texas Comptroller Bond RoundUp 2018  

A New York, Albany County  State Supreme Court judge (in other states liken it to a district court) said fantasy sports is like sports betting or poker.

But, its also not illegal in New York. 

What? Its legal to play fantasy sports, the regulatory structure is not valid. 

What’s the take away? legally complex

Bloomberg | State Judge Voids New York’s Online Fantasy Sports Law

WLNY | Judge Rules Daily Fantasy Sports Are Gambling And Illegal In New York

Albany Times Union | Split ruling on fantasy sports sites 

SJR 1 (2019 | TX) by Nelson

informed:intel on March 23, 2017:

Comptroller Glenn Hegar proposes investing to meet Texas long term obligations.

The Comptroller’s proposed idea:

• set aside some state Treasury balances to address long-term obligation by either:
  •  reserving a portion of the existing Economic Stabilization Fund
  • -or- 
  • capping the ESF and dedicating a portion above the cap to the permanent fund for long term obligations
• 7 states use long term investing on their severence taxes; including:
  • Alaska, Montana, New Mexico, North Dakota, Utah, West Virginia and Wyoming

Comptroller | Investing to Address Long-Term Obligations

and 

Lege TREND. Bill Adds Online Sales Tax. Grants Manufacturer Tax Breaks + Ends Online Sales Tax Agreements.

State: Utah

The legislation: In special session, the Utah Legislature passed HB 2003 (UT 2nd Special Session | 2018) and SB 2001 (UT 2nd special session | 2018)

What do the bills do?

• Ends agreements with collectors of online sales tax, like Airbnb and Amazon, that allowed the companies to retain up to 18% of their sales tax collections
• The online sales tax will only apply if the company does 200 sales or $100,000 in sales in UT
• Tax cuts for manufacturers to boost the state economy

US News & World Report | Utah Legislature Passes Requirement for Online Sales Tax

What tax can texas cities impose by ordinance to avoid property tax increases?

A utility sales tax:  Most Texas cities repealed their sales tax on utiltiies in the late 1970s: 141 Cities in Texas repealed their sales tax on utilities

How can this sales tax be implemented: Some say it can be revived by city ordinance

Where is it being considered? El Paso as an alternative to raising property tax revenues

KVIA | ​City of El Paso Considering a Sales tacx for utility services. 

California’s SB 946 (2018 | CA) will:

• legalize street vendors statewide
• create a permitting system
• preempt local criminal ordinances against street vendors
• allows residential areas to restrict stationary vendors 

The bill was messaged as:

• “EloteJustice”
• “elote with a side of justice”

What is the argument supporting the small business, street vendors?

The bill will override excessive local control over the streets and public spaces 

Streetsblog  Los Angeles | Bill Legalizing Sidewalk Vending Statewide Moves Through Legislature, Awaits Governor’s Signature

California passed AB 1884 (2018 |CA) preventing local bans on straws and providing for straws upon request.

Sacramento Bee | Plastic straws only for those who ask in California? It’s up to Jerry Brown

WHERE: Maryland

WHAT: Cybersecurity Investment Incentive Tax Credit  SB 228 (2018 | MD)

HOW does it work? To attract more capital the tax incentive would:

• 1/3 tax credit to invest at least $25,000 in a cybersecurity business with fewer than 50 employees

• If the business receiving the investment is located Allegany, Dorchester, Garrett, or Somerset counties a credit of 50%

• Permitts convertible debt as a form of investing.

• Applications must be submitted 1 month ahead of the investment

•  $250,000 cap for an investor within a fiscal year.

  Technically Baltimore | Maryland just opened up a tax credit for cybersecurity investors

The anatomy of fantasy sports betting proposition in Louisiana:

• Approval will be parrish by parrish
• After voter approval, the Louisiana Gaming Control Board would make rules for licensing, regulation and set tax rates
• Supporters:
  • Created the Fairness for Fantasy Sports to support the measure
• HB 484 (2018 | LA)

KSLA 12 | Elections 2018: Louisiana voters to consider fantasy sports gaming

Legal Sports Report | FanDuel Creates Advocacy Group To Push For Louisiana DFS Ballot Measure

Who is the study by? MIT researchers, who were approached by Fan Duel

What did the study say? Skill is rewarded in Daily Fantasy Sports

How did they get there?

• Examined 2013 and 2014 data from fantasy sports contests in baseball, basketball, hockey, and football 
• They examined every players performance and found it consistent through the season, if it were a game of chance the consistency would not be found
• They exmained how often people won if they played a lot or a little. They found statistically higher win fraction for people who play a lot versus a little, which indicates skill.
• they exmained player performance versus a random algorithim and found player performance beat the algorithim

MIT News | Study: There’s real skill in fantasy sports

Where & What? Lousiana legislature passed a bill to permit fantasy sports if parishes voted to approve it.

How much? Legalized fantasy sports passed in 2 parishes & failed in 4

• Yes in Calcasieu (56%) and Cameron (55%)
• No in Allen (54% NO), Beauregard (56% NO), Jeff Davis (51% NO) and Vernon (58% NO)

KPLC | Two SWLA parishes vote to allow fantasy sports betting, four vote the measure down

Arizona voters approved a constitutional ban on service taxes this week.

Other states with constitutional bans on taxing services, including Netflix? Missouri

Who is behind these bans? real estate groups

Governing | Not My Netflix or Yoga: A Second State Bans Service Taxes

This link takes you to Comptroller Hegar’s draft online sales tax legislation.

New Hampshire voters will vote to fight their governments—-in court. Adieu soveriegn immunity. it’s been real.

Who supports it? New Hampshire’s State Republican and Democratic Parties

Governing | One State’s Voters Fight for Their Right to Sue the Government 

IN 2017, the Texas Legislature provided for direct petition to the Supreme Court when property is taxed by two county taxing jurisdictions.

What property was at issue? Oxy’s facility in San Patricio & Nueces Counties

What county prevailed? San Patricio which according to Justice Hecht’s opinion, the piers installed in San Patricio County waters are derivied from the ownership of the upland property

Will this be something for the 2019 Texas Legislature? Yes, potentially the Texas Supreme Court is also set to rule on a similar case for the merits, a case pre-dating the 2017 law.

Legal News Line | Texas Supreme Court backs San Patricio County on property tax location dispute

• eliminate the port of entry tax on alcohol
  • ​why? it costs more to implement than it collects
  • savings: $7.6 million in agency costs
• align taxes on beer & malt beverages
  • why? no reason to have 2 tax structures
  • Texas system should be modernized for regulatory clarity & administrative efficiency

Sunset Adviosry Commission | Texas Alcoholic Beverage Commission

LeRoy, Texas, in McLellan County, will vote whether the town of 345 people should unincorporate.

How did we get to this? 

• 80 residents signed a petition calling for the election
• the 80 residents were motivated by the imposition of a new property tax
• residents don’t want to pay for road work on roads they do not use
  • the proeprty tax revenue was to repair damaged roadways

KWTX | Small Central Texas town could vote itself out of existence

South Carolina expanded its economic development programs to apply to more projects by:

• reduced from 175 to 125 job requirements at a single location 
• reduced to 100 jobs (from 150) at a single location comprised of a building or portion of a building that has been vacant for at least 12 consecutive months before the taxpayer’s investment 
• reduced to 75 jobs (from 100) at a single location and the jobs that have an average cash compensation level of more than 1.5 times the lower of state per capita income or per capita income in the county where the jobs are located 
• expanded the list of qualifying industries
• applied it to entities with 50 jobs at a single location and the jobs that have an average cash compensation level of more than 2 times the lower of state per capita income or per capita income in the county where the jobs are located
• applied it to entities with 25 jobs at a single location and the jobs that have an average cash compensation level of more than 2.5 times the lower of state per capita income or per capita income in the county where the jobs are located

Market Insider | South Carolina Expands Economic Development Incentives  

Oregon constititionally requires a supermajority for tax increases.

The Oregon Supreme Court said this supermajority does not apply to tax credits, deductions, exemptions etc…

November 2018 Oregorn voters will vote whether to require a supermajority for increasing “state revenue through changes in tax exemptions, credits, deductions or fees”

What group is pushing the measure? Business interests 

Governing | Oregon Voters Could Make It Harder to Raise Revenue

A ballot proposition in Oregon to prohibit new sales taxes on groceries, will effectively prohibit a local soda tax passed by Multnomah County.

Washington State voters will also vote on a ban on new grocery taxes but it will not apply retroactively like the Oregon proposal.

Governing | Groceries, Tampons, Tobacco: Voters Get to Decide What’s Taxed

WHO: Los Angeles voters

WHAT: A Novmeber 2018 ballot proposition to establish a public bank to finance:

• finance housing
• infrastructure
• community development

HOW? Public banks were common, now only the Bank of North Dakota exists.

3 Points from Bank Opposition:

• taxpayer dollars capitalize the bank & that risks tax dollars
• no clarity as to defaults
• startup costs could run into the billions

Governing | The Issues on Local Ballots: Teen Voting, Campaign Finance, Housing and More

WHERE: Indiana

WHAT: Collegiate athletes sued Daily Fantasy Sports in Indiana over using the athletes’ likenesses

WHY? The Indiana Supreme Court found that Daily Fantasy Sports Did NOT support the althetes claim to their sports data and likeness saying:

• “”material that has newsworthy value.”
• the data DFS uses is verys imilar to what appears in news and on websites
• the information is publicly available

Indianapolis Star | Indiana Supreme Court backs online fantasy sports companies in nationally watched case 

• Since 2009 35 states increased employee contribution rates
• Colorado in 2018: raised the retirement age for new hires after 2020 to 64 yr
• Kentucky in 2013: Suspended all COLAs until the fund is 100% funded
• Oregon in 2018: earmarked  alcohol and marijuana and lottery revenues for pensions
• New Jersey in 2017: dedicated all earnings from the state lottery to the public pension fund
• Oklahoma in 2014: tried to move to 401Ks, the compromise that emerged was that new state employees would be moved to a 401(k) plan after November 2015
• 2005 Alaksa switched to 401K styke plans: Public Safety Officers are finding work in other states

Front Line | How States Have Tried To Close Their Pension Funding Gaps 

Louisiana voters in Novmeber 2018 will decide whether to permit Daily Fantasy Sports on a parish by parish basis.

Supporters say:

• this is not gambling. this is entertainment . this is personal choice.
• people are going to do it anyway & the state should get its cut of the proceeds (tax)
• Fairness for Fantasy Sports, the group supporting the proposition, has populist messaging that the state cannot tell us what to do with our money

Opponents say:

• this is gambling
• DraftKings and FanDuel settled with the NY Attorney General over claims that “they employed false and deceptive advertising practices that included misleading players about the likelihood that they would earn a positive return”
• Louisiana Family Forum opposes it
• children must be protected

NOLA | Fantasy sports betting is gambling, which means there are more losers than winners

Sales between January through August hit over $1,000,000,000. The easrliest the state has hit $1 billion in sales.

Tht’s $200 M in tax revenue.

Where is the sales growth?

• edible products
• concentrates like hash oil
• live resin 

What’s the rate of growth on sales?

• 2018 year to date sales up 2.6%
• 2017 sales were up 18.7%
• 2016 sales were up 31.5%

Sales growth is slowing.

Denver Post | Colorado cracks a billion in annual marijuana sales in record time, generating $200M in tax revenue

Looking at Pennsylvania, since the NFL season started Daily Fantasy Sports Revenue has:

• increased 126%
• what does the mean to Pennsylvania coffers?
  • $2,133,714 DFS  in September = $320,057 in state tax revenue 
  • $943,620 in August
• how does PA derive its revenue? the state gets 15% of adjusted revenue

Leigh Valley Live | How much money fantasy sports generated for Pa. once the NFL season started

The anatomy of fantasy sports betting proposition in Louisiana:

• Approval will be parrish by parrish
• After voter approval, the Louisiana Gaming Control Board would make rules for licensing, regulation and set tax rates
• Supporters:
  • Created the Fairness for Fantasy Sports to support the measure
• HB 484 (2018 | LA)

KSLA 12 | Elections 2018: Louisiana voters to consider fantasy sports gaming

Legal Sports Report | FanDuel Creates Advocacy Group To Push For Louisiana DFS Ballot Measure

States taxing services like fitness memberships: WA, TX, UT, AZ, NM, CO, OK, KS, NE, ND, SD, MN, IA, MO, LA, MS,FL, TN, OH, WV, NJ, CT, VT

Netlfix taxes: Chicago, PA, & FL

AZ: A constitutional proposition in Nov. to prohibit taxing services, making it the 2nd state to do so

Governing | A Second State Could Ban Service Taxes

Association of Fitness Studios | Understanding Sales Tax for Fitness Studios

Where:  Utah

The legislative compromise: The Utah Legislature and Supports of Increasing School Funding made a deal that would:

• put a 10cent gas tax question to the voters and then require legislative implementation after the vote
•  the Legislature in exchange:
  • froze the state basic property tax rate for 5 years
  • created a new tax rate for the weighted pupil unit thereby creating a $292 million increase in education funding.
  • if the gas tax is approved, funds would be divded like this:
    • 70% to schools
    • 30% to transportation projects

Park City Record | Ballot question will ask Utah voters if they support gas tax increase for public education funding

WHERE: California

WHAT: November 2018 election in California will include a proposition to split the property tax rolls

HOW would the property tax rolls be split?

• The 1978 cap, Prop 13 would continue to apply to residential property
• The proposition removes the cap for commercial and industrial property
• Exemptions from the split roll would apply to 3 types of property:
  • Small businesses
  • agricultural land
  • up to a half million dollars worth of tangible property