Finance & Revenue

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

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

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

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

Route Fifty | Curbside Recycling Offsets Garbage Emission Impact

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

@good

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

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

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

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

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

Governing | Football Stadiums Belong in the Suburbs

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

Governing | Connecticut’s Workforce Is Attracting Manufacturing Industry

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

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

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

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

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

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

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

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

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

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

Governing | Ohio County Considers Blocking Businesses That Defraud Workers

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

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

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

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

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

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

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

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

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

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

Texas Comptroller | EMERGENCY PREPARATION SUPPLIES SALES TAX HOLIDAY

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

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

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

Route Fifty | Oregon Provides Child Care Support for Construction Workers

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

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

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

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

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

Governing | California Proposes Amber Alert for Black Women and Girls

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

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

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

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

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

@NPR

WalletHUB | 2023 tax Burden by State

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

AP | Massachusetts auditor announces rare review of Legislature

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

WCAX 3 | Cannabis tax revenue growing in Vermont

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

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

Ohio’s proposed state budget increases the tax on sports betting revenue from 10% to 20% with the additional funds being directed to education and youth athletics.

@karenkasler

Idaho’s Speaker of the House is supporting legislation that would require both chambers of the Legislature approve proposed rule making before rules are effective.

As a bonus, the new system will create a sunset process to review the necessity of administrative rules every 8 years.

Idaho Capital Sun | GOP legislators pushing new bill to change Idaho Legislature’s administrative rulemaking process

Florida Legislature is considering SB170 (2023 | FL) that would allow private companies to sue local governments. It will also require local governments to conduct a business impact statement for each proposed ordinance.

Legislation in Missouri wants to limit access to open records when  there is no “substantial administrative or operational value” that includes health and safety, security and more. Opponents say “This legislation is designed to effectively cripple citizens’ ability to gain a thorough understanding of what their government is doing.” SB 174 (2023 | MO)

Governing | Missouri Might Limit Public Access to Records, Meetings

Sports Betting for the Super Bowl is said to exceed $16 billion. It’s said 1 in 5 adults will be placing a bet. That’s up 61% from last year.

AP | Super Bowl gambling surging as states legalize it? You bet

Wisconsin Governor is proposing to send 20% of the sales tax revenue back to local governments and give local governments greater authority to raise their sales taxes.

According to the Governor, it’s to make up for the fact that cities “have been forced to do more with less.”

Route Fifty | A Governor Backs a Major Funding Boost for Counties and Cities

So much hype of dissolving Disney’s taxing jurisdiction… This year the Florida legislature wants to delay the dissolution and allow the Governor to directly appoint all the board members on the special taxing district board. Is it a dissolution if the Legislature creates a new special taxing jurisdiction for Disney, the Central Florida Tourism Oversight District?

Florida Politics | Bill to change Disney World’s government board passes House committee despite Democrats’ concerns

Governors are opening state jobs to people who have but do have relevant skills, training or experience, but do not hold college degrees. Maryland Gov. Larry Hogan did it in spring 2022, as did Colorado Governor Jared Polis. GOP Gov. Spencer Cox of Utah ended 2022 with this step and Maryland Governor Wes Moore started his year by making this move. Not a red or blue issue but a support the working class issue.

Governing | One Smart Way to Win Over Working-Class Voters — and Help the Economy

This week Utah and Texas State Attorneys General sent a letter to Institutional Shareholders Services Inc and Glass Lewis & Co suggesting a violation of federal and state law concerning advice and duties of shareholder proxies. Why? ESG. The two Attorneys General are not fans of ESG.

Texas Attorney General

Leave it to football to remind us that the S in ESG, sustainability, can refer to economic sustainability. A forthcoming regulator for English football I will govern the “financial sustainability of the professional game” based on a Sustainability Index .

The Athletic | The Football Sustainability Index: How well run is your club?

7 states (CA, HI, CT, IL, MD, NY & WA) represent about 60% of the nation’s wealth. All 7 states are proposing wealth taxes this week.

The Tax Foundation describes wealth taxes as ” wealth taxes are “economically destructive, their base is almost impossible to measure accurately, and they create perverse incentives and promote costly avoidance strategies. Very few taxpayers would remit wealth taxes—but many more would pay the price.”

Tax Foundation | Wealth Tax Proposals Are Back as States Take Aim at Investment

Wharton Business School study says Texas anti-ESG stance “raised costs to the public by as much as $532 million in its first eight months.” Economic types applied this analysis to other states that have passed similar laws with the cost increases for financing being up to an additional $70 million in Kentucky, up to $361 million in Florida, and up to $131 million in Louisiana.

Houston Chronicle | Further state-level boycotts of financial firms could come at a steep price

I’m a practical person. There were people living on this land before Columbus and the English arrived. The people who came to this land were foreigners & now descendants want to ban foreign investment. This is an interesting valley of irony in U.S. history.

In Texas, the ban is with legislation. SB 147 (2023 | TX) would prohibit investment in real property by persons (corporations too) from China, Russia, Iran and North Korea. SB 522 (2023 | TX) would prohibit investments in agricultural land by persons (corporations too) from China, Russia, Iran and North Korea.

In South Dakota, the ban is by Executive Order. It will stop state agencies from doing business with telecoms or IT firms that are tied to China, Cuba, Iran, North Korea, Russia and Venezuela.

Route Fifty | Executive Order Blocks State Business With ‘Evil Foreign Governments’

What is happening? A former Georgia State Supreme Court Chief Justice says that sports betting does not require a constitutional amendment because it can be included under the historical interpretation of the state lottery which is in the Georgia State constitution.

Why is this important? “Based on my review of the relevant law, the original public meanings of applicable terms and the historical context of those terms, it is my opinion that sports betting can be legalized as a state-run lottery for educational purposes solely through legislative action,” wrote the former Chief Justice for the Georgia State Supreme Court.

Atlanta Journal Constitution | Ex-Georgia chief justice: Sports betting doesn’t require constitutional amendment

What is happening? Governor Greg Gianforte and the Montana Board of Investments today announced the State of Montana has reaffirmed its commitment to oppose “woke capitalism.” State Funds cannot be invested relying on ESG standards.

Montana.Gov | Governor Gianforte, Board of Investments Block ESG Investing of State Funds

What is happening? Larry Fink, the Blackrock CEO, is at Davos talking about the personal attacks he is receiving because of ESG misconceptions. He referred to the ESG political narrative as ugly and polarizing.

Investment Week | BlackRock’s Larry Fink: Attacks over ESG have become ‘personal’

What is happening? Davos is happening and there is a lot of ESG talk. The CEO of Bank of America said that global ESG standards will “align capitalism with what society wants from it.” He went on to talk about how it is crucial that sustainability and ethical standards became official and global.

CNBC | Bank of America CEO says new ESG rules are needed to reboot capitalism

What is happening? North Dakota House passed a bill legalizing sports betting this week. The bill will require a constitutional proposition on the 2024 ballot. republican support focused on additional state revenue and the bill’s oversight and regulation.

Associated Press | ND House passes legislation to legalize sports betting

What is happening? Minnesota legislators are considering proposals to permit recreational cannabis sales. The proposal includes an 8% sales tax and addresses diversity and inclusion by making it easier for small businesses and minority owned businesses to participate. A portion of the revenue will be directed toward  community-building grants in areas disproportionately affected by cannabis law enforcement.

Ganjaprenuer | Minnesota Cannabis Legalization Proposal Includes Social Equity and 8% Tax

Connecticut opened to recreational cannabis sales. 1st day sales total $250,000. Nationwide the cannabis industry estimates  $73 million in revenue for Connecticut by 2026.

NBC CT | Over $250K Made in First Day of Connecticut Recreational Cannabis Sales

What is happening? King County, Washington is considering a proposal to ban retailers that are cashless. The proposal would require retailers to accept cash up to $250 and would prohibit higher cash prices. Cashless became common at the outset of the pandemic to minimize contact. Supporters say that cashless businesses discriminate against low income consumers and raises privacy concerns.

Why is this important? 1.9% of King County residents are underbanked with no access to a bank account. Interestingly. I read recently that Denmark became a cashless country and saw the number of robberies decrease.

Governing | King County Council Considers Banning Cashless Retailers

What is happening? This month the German Supply Chain Due Diligence Act became effective. Ja, the  Lieferkettensorgfalts­pflichtengesetz, is now in full effect. (not a typo, this is the German name for this Act) To start,  the Act applies to companies of at least  least 3,000 employees. Small and medium-sized companies won’t escape the Act, but will meet different supply chain standards that also address sustainability. What does sustainability have to do with supply chain? When a product travels great distances to reach Germany there is a carbon footprint. The Act also covers supply chain workforce safety and labor protections, and places a due diligence duty on companies that operate in Germany to align their supply chain accordingly.

Why is this important? Countries and states are focusing on how to bring the supply chain back to their lands. Closer goods, fewer supply chain interruptions.

Roedl | The new German Supply Chain Due Diligence Act (LkSG) – what needs to be done

What is happening? The Midwest is using quality of life as its economic development tool. Here’s how it works in a nutshell: “The emerging focus on attracting people who can provide the foundation for a solid workforce in the region stands in contrast to other approaches to economic development” Making your state or city a better place for people to live (not because of politics) but because of quality of life. Hello, post COVID world. Hello, remote workers- do you too like a high quality of life?

Route Fifty | The Fresh Economic Development Strategy Emerging in the Midwest

What is happening? Data says the infrastructure workforce is retiring more than it is hiring, so they call it a silver workforce. 17 Million will retire in the next 10 years. It’s a problem because 2022, 16.6 million people were employed in the sector in 2022. 11% of infrastructure workers are 24 years or younger. 

Why is this important? The jobs pay well but there’s no allure for the jobs. “Kids these days.” Statistically this sector is 80% male and it is very white. The tune sounds like if you want infrastructure workers, it’s time for some Diversity Equality and Inclusion.

Route Fifty | The ‘Silver Tsunami’ Expected to Hit the Infrastructure Sector

What is happening? New Data tools- yay! Municipal Securities Rulemaking Board’s EMMA database has made bond data more accessible.  The Center for Municipal Finance Muni Index can give you a look into what investors think of your local government’s bond appeal. It’s like Tinder, but not.

Route Fifty | Real-Time Data on What Muni Bond Investors Think of Your City

What is happening? Banking reform to allow for licensed cannabis businesses to  open bank accounts were left out of the 2022 year end $1.7 trillion federal spending bill. Cannabis businesses are left with the option of being cash businesses. U.S. Sen. Steve Daines, a Montana Republican pushing for the SAFE Banking Act, said ““the failure to pass my ‘SAFE Banking Act’ means communities in Montana and across our country will remain vulnerable to crime where legal businesses are forced to operate in all cash.””

Why is this important? Mitch McConnell refers to SAFE Banking as making banks “”more sympathetic to illegal drugs.” This tells me that there is a messaging problem.

Route Fifty | Marijuana Banking Reform Left Out of Year-End Spending Deal 

What is happening? Pennsylvania legislators are preparing legislation to audit the state’s professional sports stadiums to ensure that “the Commonwealth receives the full economic benefit of the public funding provided for the construction of four major league sports stadiums in Philadelphia and Pittsburgh.” According to a sports economist, “The lawmakers aren’t necessarily trying to attack the sports teams because that’s not necessarily good politics. They’re just more looking for the side of transparency and understanding what’s actually happening to taxpayers in those cities.”

Why is this important? Legislators auditing stadiums… coming to a headline near you.

Route Fifty | Two Legislators Want to Audit Their State’s Professional Sports Stadiums

What is happening? New Mexico became the first state in the nation to guarantee child care. Childcare is free for families that make up to $111,0000.

@good

What is happening? Washington State is considering issuing baby bonds that aren’t tiny bonds with tiny legs but rather are bonds that are designed to “lift future generations of low-income residents toward a path of financial independence.” It would create a pool of money for every child born under the state’s Medicaid program. These kids could then access a portion upon adulthood for homeownership, education or pursuing a small business.

Why is this important? Connecticut and Washington, D.C. have created similar programs. Massachusetts and New Jersey are also considering it.

Governing | Washington State Considers Baby Bonds to Address Wealth Gap

What is happening? The Inflation Reduction Act has an incentive program for apprenticeships. The incentive is structured like this: to claim the production tax credit under the IRA, building contractors must meet employment standards including that registered apprentices work a set percentage of hours on IRA projects.

Why is this important? The construction industry skews older and has a large number of vacancies.

Route Fifty | Now is the Time for State and Local Investments in Apprenticeships

What is happening? NYC is hiring a rat czar to get a handle on the rat issue. This led down the rabbit hole to what other unusual local governmental job titles exist? Meet the NYC BeeKeeper, NYC Clock Master, ,

Route Fifty | Rat Czar Isn’t the Only Weird Government Job in New York City

What is happening? State budgets are being strained by the cost of wildfire prevention according to a new report from The Pew Charitable Trusts. From 2010 to 2014 the State of Washington spent $24 million a year on wildfire prevention, but starting in 2015 the annual cost rose to $83 million. The report points to the number of different governmental agencies that respond to wildfires as complicating disaster funding.

Why is this important? using data on previous fires often underestimates state costs and thereby causes budgetary problems for states according to the report.

Route Fifty |Wildfires are Burning an Ever-larger Hole in State Budgets

What is happening? If I take a cynical approach to this, Ron De Santis is running for President. So, Florida Chief Financial Officer announced that the state will be pulling $2 billion in assets that are currently under management by BlackRock. Why? The investment firm support for environmental, social and governance investing. Let’s double around to another item this week that shows that ESG is the largest share of consumers in the market, is demanded by the global market, and by 2025 will account for the most funds in Europe. The response: “Fiduciaries should always value performance over politics.” The firm gave Florida strong returns.

Why is this important? This is a global economy. Foregoing strong returns to make a political statement appears to be against one’s economic interest.

WSJ | Florida To Pull $2 Billion Out of BlackRock, Citing Its ESG Investing

What is happening? American Gaming Association estimates $511 Billion in illegal gaming occurs annually in the US, which accounts for $13.3 billion in tax revenue each year. For those keeping count, this is $2.5 billion more than the state revenue generated by legal operators in 2021.

Why is this important? While state legislative coffers may be flush this year thanks to federal IRA funding, leaving tax revenue on the table isn’t something to scoff at in most states.

AGA reports illegal gambling of $511 billion annually captures $13.3 billion in tax revenue in U.S.

What is happening? California voters have approved Proposition28 that would require 1% of state funds for public education be spent on Arts programs. 1% in California’s public education budget amounts to $1 billion.

Why is this important? The goal is to ensure arts programs exist in all schools.

Governing | What Did Midterm Voters Have to Say About Work and Workers?

What is happening? Oregon Treasurer proposes that the state’s  $90 billion fund stop investing in companies that emit planet-warming greenhouse gases by 2050 so long as the fiduciary duty to the beneficiaries is supported. The move will have 2 steps: first, 50% decarbonization of the state’s assets by 2035 and, second, a net zero greenhouse gas emissions by 2050.

Why is this important? This isn’t new. CALPERs in California has similar divestment policies, that also requires responsibility to beneficiaries. New York State Pension fund has announced that it will no longer have fossil fuel stocks or shares of companies that increase climate change by 2040.

OPB | Oregon’s treasurer wants $90B pension fund to drop fossil fuels

What is happening? 14 of 18 states that tax legalized cannabis use a price based tax. Alaska, Maine and New Jersey tax cannabis based on weight. Connecticut, Illinois and New York, which also tax based on price, also have a potency level tax. The potency tax is like they tax their alcohol where beer has a lower tax rate than vodka.

Why is this important? Some tax experts say a weight based tax will weather market volatility more. As we’ve talked about around here, cannabis weathered COVID pandemic exceptionally well.

Maryland Matters | Pondering options, Md. lawmakers learn that taxation on cannabis varies from state to state

What’s happening? Former Texas governor Rick Perry will be a spokesperson for the Texas Sports Betting Alliance. The most recent tweet for this Alliance is July 2021. @SBAllianceUS There’s also a Facebook link for those over 95.

Why is this important?

Former Texas governor wants sports betting in state | Star Telegram

The legalization of psylocibin and similar  hallucinogenic plants and funghi were on the ballot in Colorado and Oregon. The ballot initiative was successful in Colorado and focused on mental health care. In 2020 Oregon legalized psylocibin. This year’s ballot measure focused on manufacturing plants and paste din 2 counties, while the other counties voted against the measure.

Governing | Midterms Reveal Support for Abortion Rights, Mixed Views on Cannabis

OPB | Several rural Oregon counties vote against therapeutic use of psilocybin

What is happening? Legalization of cannabis, by various methods, failed in 3 states : Arkansas, North Dakota, and South Dakota. legalization, in various forms, succeeded in Maryland and Missouri.

Governing | Midterms Reveal Support for Abortion Rights, Mixed Views on Cannabis

What is happening? Arizona voters will vote whether to require the Legislature to pass tax hikes by a vote threshold of 60%.

Why is this important? Supporters say the proposition is necessary and is “intended to rein in ballot initiatives that threaten the state’s economy and that are often backed by groups from outside of Arizona”

Route Fifty | A Fight Over How Tax Hikes are Passed at the Ballot Box

What is happening? Arkansas, Maryland, Missouri, North Dakota, and South Dakota will all have recreational cannabis on their ballot on November 8th. The proposed tax schemes are:

• Arkansas: 10% supplemental sales tax 
• Maryland: Legislature would set the tax rate
• Missouri:  6% tax on the retail price 
• North Dakota: unknown, looks like the state’s 5% tax rate but could be legislative set. lots of unknowns.
• South Dakota: up to the Legislature

Why is this important? 19 states have approved recreational cannabis at this point.

Tax Foundation | Cannabis Taxes Back on the Ballot in 2022

What is happening? Miliken Center for Advancing the American Dream measuring states based on  health, education, the business environment and personal freedom. In total 230 indicators across 90 sources were utilized. The top: Massachusetts. The bottom: Mississippi. CA: 28 TX: 38 FL: 31 IL: 24 PA: 23 FL: 31 OH: 34 AZ: 40 WA:9

Why is this important? Polling. Political polling is including questions abut how people feel about the current situation or how well politicians are leading. feelings matter and this data is a window into the soul of things that touch the lies of everyday people.

The Hill | Massachusetts tops new ‘prosperity index’

@bloombergbusiness

Miliken Center for Advancing the American Dream

What is happening?; West Virginia voters will vote whether to end the inventory and equipment tax on businesses in the state. Local governments say it will remove 1/3 of their revenue.

Why is this important? State lawmakers say they will make up for the lost local revenue.

Route Fifty | West Virginia Ballot Measure Has Local Officials ‘Very, Very Nervous’

What is happening? Denver has created a participatory budgeting process in which all residents of Denver are eligible to vote how $2M in Federal Infrastructure Funds can be spent. Philadelphia and NYC have tried this in the past with the goal of increasing civic engagement and equity.

Why is this important? Voting is open to “All residents are eligible to vote, regardless of age or immigration status.” The process including submitting projects for funding. During that process, 46% said they did not or could not participate in the 2019 city elections.

Route Fifty | A City Asks Residents to Vote on Which Infrastructure Projects to Fund

What is happening? Some global policymakers are talking about how to impose transaction taxes, income taxes on the metaverse. Its going to involve cryptocurrency, NFTs, defining of wages in the Metaverse.

Why is this important? This is a blank canvas for policymakers.

Forbes | Taxing Income In The Metaverse