Topics
Finance & Revenue
Finance & Revenue
COVID. State Legislatures Allowing Fines for No Mask Use
Mask Wearing by the numbers:
- 34 States have mask wearing mandates
- 200,000 COVID cases between March 31 and May 22 averted because of mask use according to the journal, Health Affairs
The states that are getting tougher on mask wearing:
- New Jersey S2814 (2020 | NJ)
- not wearing a mask during a public health emergency & entering a store or retail business, if signage is posted, would be classified as trespass
- petty disorderly persons offense punishable by a fine of up to $500, up to 30 days in prison, or both
- Minnesota HF10 (2020 | MN)
- Allows businesses to refuse service for not wearing a mask
- Pennsylvania SB1287 (2020 |PA)
- Creates a second-degree misdemeanor to willfully fail to wear a mask or face covering as required by the governor’s public health emergency declaration
- Classified as reckless endangerment, conduct that could place another “in danger of death or serious bodily injury.”
Governing | Lawmakers Get Tough with Mask Requirements: Legislative Watch
What’s a hometown tax program?
Where do we find a hometown tax program? Japan
What does a hometown tax program allow? Allows taxpayers to make donations to any participating municipality in the country — often in return for a small token of appreciation in the form of local produce. The donated amount is then deducted from the taxpayer’s annual local tax bill.
What’s the benefit? benefit to rural areas as 92% of the population lives in urban areas
Has it worked? In 2019, it accounted for 500 billion JPY (around $4.7 billion USD) in revenue for local governments
COVID RESPONSE. State Corporate Tax Transparency Legislation. Sunshine on Taxation & Tax Credits.
The legislation: California’s SB 972 (2020 | CA) awaiting Governor signature
What would corporations have to disclose under this bill?
- How much they pay in state taxes
- The amount of their state tax credits, exemptions, incentives, and deductions
Why did the author say this is bill is important because of COVID? Because large corporations are profiting and small businesses are struggling during the pandemic.
Which corporations would be required to make the disclosures? Companies with gross receipts of $5 billion or more — an estimated 400 to 500 companies.
Is this unique to California? No, 15 other states that require corporations to disclose state tax information
BLM Police Reform Bill Package with a Grant Program
The Wisconsin Governor and Lt. Gov. are proposing the following 9 legislative changes in response to BLM. To up the ante, the Governor called a special session on these too:
- Establish statewide use of force standards for all law enforcement agencies identifying the use of deadly force as only allowable as a last resort and that such use of force should be limited to the least amount of force necessary.
- Require officers to complete eight hours of training on the use of force and de-escalation techniques annually.
- Create a $1 million grant program, administered by the Department of Justice, to fund community organizations that work to mediate conflicts.
- Require law enforcement agencies to develop policies banning the use of chokeholds.
- Require law enforcement agencies to prepare policies for the use of force and make such policies publicly available.
- Put in statute a civil cause of action against unnecessarily calling police for the intent of infringing on a person’s constitutional rights.
- Prohibit no-knock search warrants.
- Require additional training and hiring standards for police departments, jails and juvenile detention centers.
Lake Geneva News | Governor urges legislature to act on police reform after Kenosha shooting
Unintended Consequences. When Regulatory Acts Reclassify Daily Fantasy Sports
What regulatory acts are being identified as re-classifying Daily Fantasy Sports as gaming/gambling?
- The IRS. A General Advice Memorandum compares daily fantasy sports companies to sports gambling companies and are thus “liable for the excise tax on wagers”
- Colorado Department of Regulatory Agencies is transferring oversight of Daily Fantasy Sports from Director of the Division of Professions and Occupations to the Director of Gaming
Potential impact:
- Litigation from larger operators
- Burden of entry for smaller, startup daily fantasy sports operators
COVID Liability Legislation. Where are we?
States are limiting liability related to COVID in varying ways, here’s the latest sampling:
- NEVADA provides limited liability for businesses that are in substantial compliance with safety regulations and orders SB 4 (2020 | NV)
- LOUISIANA offers limited liability to schools and charter schools + colleges and universities if HB 59 (2020 | LA)
- TENNESSEE doubled up on immunity for governmental entities SB8009 (2020 | TN)
- VIRGINIA is extending limited liability protection for the PPE industry SB5098 (2020 |VA)
- MICHIGAN granting limited liability protection for PPE industry, cleaning and disinfecting supply industry & the insurance policies that extend to all of these SB 1024 (2020 | MI)
All of these share the common attribute that protection does not extend to gross negligence, willful, wanton, intentional …the usual suspects of legalese.
Governing | States Act to Limit COVID-Related Liability: Legislative Watch
BLM Prison Reform
Where: New Jersey
What: SJR 94 (2020 | NJ)
How is New Jersey looking to adapt its prison reform based on BLM?
- TASK FORCE to study racial bias within the state’s criminal justice system
- The Task Force members will be:
- 2 members of the General Assembly, one who is a member of the Legislative Black Caucus and one who is a member of the Legislative Latino Caucus, appointed by the Speaker of the General Assembly
- 2 members of the Senate, one who is a member of the Legislative Black Caucus and one who is a member of the Legislative Latino Caucus appointed by the President of the Senate
- Attorney General
- Superintendent of the New Jersey State Police
- Chief Justice of the Supreme Court
- President of the New Jersey Prosecutors Association
- Executive Director of the Juvenile Justice Commission
- Commissioner of Corrections
- Public Defender
- 6 members of the public, appointed by the Governor, who represent communities and community-based advocacy groups that reflect the diverse economic, racial, cultural, gender, and occupational composition of the State. 3 of these 6 members of the public should have knowledge of or experience with the New Jersey criminal justice system.
COVID Prison Reform.
Let’s start with the numbers the reformers talk about:
- US leads the world in the # of incarcerated per 100,000 citizens
- 500% increase in jail & prison population in the last 40 years
- 10% of all the Black men in America are in jail or prison
- Top 10 COVID clusters in the US are prisons/jails
- 18 of the top 20 COVID clusters in the US are prisons/jails
What state legislation is percolating?
- UTAH
- Public Health emergencies allow for sentencing changes HB 610 (2020 | UT)
- VIRGINIA
- Provide early release for elderly, ill, or/& disabled if they’ve served at least 5 years SB 5018 (2020 | VA)
Governing | COVID Prison Disaster Prompts Reform Bills: Legislative Watch
TX Attorney General Opinion. TRS Investments. What is a security?
Texas Attorney General Opinion KP- 0328 answers whether real estate investments qualify as a security under Texas law.
The answer: it’s complicated
- The Texas Constitution still says investments must be in securities and hasn’t been updated to correct previous Attorney General Opinions that said no to investing in real estate
- But, the Texas State Securities Board notes that real estate investments can be in the form of a “real estate securities”
- it’ll depend on the individual investment
COVID. A Legislature + A Rules of Procedure Fight = A remote Legislature
The state: Virginia
The rules fight happened where? Not at the Capitol, but at meeting with spaced-out desks in VCU’s Siegel Center
What prevailed? Remote legislative sessions and remote committee hearings.
Concerns about remote convening? Disproportionately impacts rural members who do not have broadband access
COVID Legislation. Business Liability.
The State: Idaho
The legislation:
CORONAVIRUS LIMITED IMMUNITY ACT
Immunity for Good Faith Actions
Another version of Immunity for Good Faith Actions
The end result: Passed blanket immunity except for intentional acts and a workers comp carve out
BLM Response. Protestor Criminalization Legislation.
Where: TN
What: HB 8005 (2020 | TN)
How:
- people who illegally camp on state property
- will face a Class E felony, punishable by up to six years in prison
- those found guilty of the felony lose the right to vote
- mandatory 45-day sentence for aggravated rioting
- fine for blocking highway access to emergency vehicles
- enhances punishment for aggravated assault against a first responder to a Class C felony
What happened around the TN Capitol related to this bill?
- 2 months of sustained protests outside the state Capitol
- Governor signed
- Concerns that non-protesting homeless will be arrested under this legislation
The Hill | Tennessee governor signs bill increasing punishments for certain protests
BLM Related Legislation. Connect Non-Profits & Newly Released Incarcerated
New York’s S8689 (2020 | NY) connects soon to released incinerated persons with non-profits that can assist with housing needs.
Making the connections to housing and other services 45 days before release to better prevent discrimination in provided services.
How a state FINED a county
Which state? California
California fined which local government? Los Angeles County
How did California fine Los Angeles County? Because LA County used tax payer funds to pay for PR for a proposed sales tax increase.
TX Lege 2021: 1st Salvo. Disaster Power Limitations Legislation
Who: Bryan Slaton@BryanforHD2
What legislation is Slaton saying will be his first? To amend the emergency disaster powers available to the governor through the Texas Disaster Act
Why? To end the abuses of the Disaster Act. + He believes Republicans can’t only oppose abuses of power when it is a Democrat.
Growth During Pandemic in 3 Cities. The Commonalities.
The cities experiencing growth during the pandemic:
- Owensboro, KY
- Idaho Falls, ID
- Logan, UT
What do these 3 small cities have in common to support growth?
- diverse economic base anchored by hospitals, food processors, and some manufacturing
- supported small local businesses early with grants, widening sidewalks, permitting open air dining, facilitating delivery services
- marketing campaigns to their residents supporting the businesses to help business as usual
Governing | Three Small Cities That Are Thriving Despite the Pandemic
Different Recoveries for Different Tax Revenue
Income Tax: most significant shortfalls in income-tax during the months ahead, & uptrending receipts for 2021
Sales Tax: Local-source sales taxes from malls and regional brick-and-mortar stores will be hardest-hit. Internet sales will bolster receipts. Normal levels mid 2021.
Property Taxes: The most stable of taxes. Impact will be felt in commercial sector. Vacancies may not refill until 2022.
Transit Taxes: Won’t recover until the pandemic allows for travel or “or Americans finally adjust culturally and apolitically to Asian-style mask-wearing.”
Whose analysis: GIRARD MILLER, FINANCE COLUMNIST
Governing | Yahoo Finance | When Will Tax Revenues Rebound? It Depends on the Tax.
+1 State Legislature: Racism is a Public Health Crisis
Add the Nevada Legislature and the Nevada Governor to the list of states declaring racism a public health crisis.
The legislative request for the next legislature: “incorporate into the regular business of the Nevada Legislature the subjects of systemic racism and structures of racial discrimination which constitute a public health crisis and which is magnified by the disproportionately high impact of COVID-19 on communities of color.”
Nevada Current | Governor, Legislature declare racism a public health crisis
State Reaction to Losing an Economic Development Bidding Competition: Lure Auto Suppliers
The State: Oklahoma
What recent economic development project chose Austin, TX over Tulsa, Oklahoma? Tesla’s new Gigafactory
How did Tulsa even get into the running for the Gigfactory
- The Governor tweeted, the Oklahoma Secretary of Commerce, and mass of Oklahomans before any economic development offer was even considered or made by Oklahoma.
- Yes, Oklahoma Cold tweeted and it worked.
The reaction by Oklahoma produced a plan to lure in auto suppliers by:
- Created a new accelerator program designed to lure more automotive industry
- Targeting suppliers to the Gigafactory that make tier one and tier two supplies
COVID +1 State. Teacher Led Coalition: Divest Pensions from Private Prisons
Teachers in New Mexico are organizing to have their pension divest from private prison contractor investments.
Why the call for divestment?
- COVID outbreaks at facilities
- Conditions at facilities
- The facilities are costing rural areas millions, while being built promising to add economic value
Who is in the coalition? Albuquerque Teachers Federation, NEA-NM, NM AFT, Teachers Against Child Detention, Albuquerque Interfaith, Santa Fe Faith Network for Immigrant Justice, University of New Mexico law faculty, a retired federal judge, Santa Fe Public Schools Board of Education and Española Public Schools Board of Education
The New Mexican | Retirees want private prisons out of pension funds
Gaming + Corporate Social Responsibility
Who knew there is a corporate social responsibility award for the gaming industry awarded by the National Council on Problem Gambling?
This year’s winners are Hard Rock International and Seminole Gaming.
What corporate social responsibility did Hard Rock International and Seminole Gaming do to receive the award?
- Created the The PlayersEdge program
- The PlayersEdge program is the first comprehensive gambling literacy and education program designed by a US-based gaming operator
Is corporate social responsibility built into the Hard Rock International governance structure? Yes, and led by the Vice President of Global Social Responsibility
SBC Americas | Hard Rock and Seminole Gaming win CSR award from NCPG
COVID + Oregon Lege. Education Funding. No Lobbyists. No Verbal Public Testimony.
Times are a changing. Oregon held a special session to provide for public education funding in light of reduced revenue due to COVID.
What were the Ground Rules for the Oregon Special Session with COVID safety requirements?
- Capitol closed to the public
- No lobbyists or special interests permitted in the Capitol
- No verbal public testimony. Public testimony was submitted in writing
- Committees met virtually
- Votes taken in person in the Chamber
Statesman Journal | Tempers flare as Oregon Legislature rebalances state budget, adjourns in one day
4 Ways a Legislature is Planning for 2021. Fine Print in the RULES OF PROCEDURE.
The Legislature: Montana
The Montana Legislature has been presented 4 options by the Montana Legislative Services Division.
How would they shorten a session? By placing in the rules what could and could not be considered, what business can take place, and specific legislation committees could consider.
State Public Health Act Allows Governor to Fine Businesses
The state: New Mexico
What fines can the Governor impose under New Mexico’s Public Health Act?
- can be a misdemeanor with a fine of $100 fine + 100 days in jail
- may also be a $5000 administrative penalty
The issue went to the NM Supreme Court what’s the reaction? Concerns from the business community that a Governor can impose $5000 fines for businesses being open during an Executive Order.
NM Political Report | NM Supreme Court rules state can impose fines, other punishments for businesses who violate state health orders
COVID. States Eye Stockton Pilot Program: Stockton Economic Empowerment Demonstration
What is Stockton, California’s Stockton Economic Empowerment Demonstration? A pilot program that is privately funded program and provides guaranteed income for residents of $500/mo
Others who have championed basic income programs like Stockton’s? Elon Musk and Andrew Yang
Why does this sound familiar? last week we talked about Helsinki, Finland paying for housing for homeless and saving millions because of it.
Cal Matters via Governing | COVID’s Economic Crisis Has Many Looking to Stockton for Ideas
Anatomy of a COVID liability protection bill
The Legislature: Oregon
The legislation goal:“Entities need to know they have protection from lawsuits if they are following state mandated safety guidelines.”
The exceptions to liability protection:
- gross negligence
- reckless, wanton or intentional misconduct
Supporters: 50 business associations, schools, local governments and nonprofits
How many Carona virus related lawsuits are there in the US?
- 3,832 coronavirus-related lawsuits
- 16 personal injury suits from consumers
- 42 wrongful death suits
- 72 suits related to conditions of employment
- 24 coronavirus-related lawsuits in Oregon
Oregon Live | Oregon businesses, governments want lawmakers to shield them from coronavirus lawsuits
Portland Tribune | Legislature must pass COVID-19 liability protections
COVID. Sneak Peak: Legislators Negotiate Terms of Legislative Session
Where: Maine
What’s happening up in Maine? Rs and Ds are using a poll to return to their legislative session as a negotiating tool. Surprise!
Why are legislators in Maine being polled to return? Its the Maine process for convening a special session.
What’s the current poll result look like?
- Democrats, Independents and the Tribal Representative voted to return
- 1 Republican voted yes, other Republicans did not respond
Negotiating the ground rules of a legislative session is the new busting quorum.
Bangor Daily News | Top Democrats call 2nd poll to bring Maine Legislature back, but stalemate with GOP remains
COVID Relief Legislation: Live Music
The association behind the scenes: Save Our Stages
How would the funding work?
- SBA would offer loans
- loans could fund eligible venues equal to the lesser of either 45 percent of operation costs from calendar year 2019 or $12 million
Amy Klobuchar | Klobuchar, Cornyn Introduce Relief Bill for Independent Live Music Venues During Pandemic
Dallas Observer | Senate Introduces Save Our Stages Act to Grant Billions in Aid to Venues
KVUE | COVID-19 relief bill introduced for live music venues
TX Attorney General Opinion. Masks in Public Buildings
Can a County’s emergency order require masks in courthouses and county buildings?
Yes, Texas Courts inn 1938 said county’s had authority to reasonably regulate its buildings. And the current Governor’s executive order concerning COVID supports compliance with CDC mask requirements
Is there a caveat: Must follow Office of Court Administration rules concerning court houses
Can the county fine violators? Yes, “local officials may impose a fine, consistent with Executive Order GA-29, and may remove or deny entry to individuals refusing to wear a facial covering inside those premises.”
+1 State Legislature. Special Session on COVID liability issues
The State: Idaho
The issues for Idaho’s special legislative session:
- voting in the general election
- liability reform during emergencies
KTVB | Idaho governor to call special session of the Legislature
+1 State Legislature Extends its Session
Where: Massachusetts
Why is the Massachusetts Legislature extending its session? Unfinished Business
What unfinished business is on its agenda:
- COVID related property issues like evictions
- COVID related public education funding
- Black Lives Matter, indigenous, and people of color related legislation
What did legislative leaders say?
- Extending the legislative session “because the pandemic “does not abide deadlines.””
- “Leadership of both branches have publicly stated their commitment to combating racism and listening to those most impacted by it. That commitment has yet to be realized”
School Finance. Use School Transportation Funds for Food Delivery.
Where: New York
The legislation: S8585A (2020 | NY)
What would it do? All schools to use transportation funds to deliver food, materials and other items to students during the pandemic.
Cannabis & COVID. A revenue solution?
Ask the Speaker of the Texas House if a tax on cannabis can fill a revenue deficit, and the answer is yeah, it’s a part of the solution.
In 2018 the Texas Republican Party platform supported decriminalization. The 2020 platform has not been finalized.
New Betting Platform: Smarkets bets on politics
Smarkets has been granted gaming authority in Sweden to accept wagers on politics.
Smarkets also has offices in Malta and Los Angeles.
The legislation: Ending the tax on sports betting
Which tax could be repealed? The federal tax ”the handle tax” on sports betting
The legislation: H.R. 7790 (116th Congress)
What are the bill’s sponsors saying?
- This bill will …” eliminate an outdated tax and burdensome requirements on the gaming industry,”
- Levels the playing field with lotteries and horse racing that don’t pay this excise tax nor its required per employee tax
Ripon Advance | Reschenthaler proposes bipartisan bill to repeal excise tax on sports bets
Gaming Supporters: Why Texas is so anti-gaming?
A proclaimed Texan explains why Texas history explains the anti-gaming history.
- 1920s local governments in Texas began outlawing other vices during prohibition
- When the 18th Amendment to the US Constitution was overturned, Texas dug in like a pug relentlessly demanding a dog bone.
- Texas hasn’t changed its tune since 1919
COVID leads to open records legislation
Where: Pennsylvania
What: House Bill 2463 (2020 | PA)
How does the bill impact public information?
- requires state agencies to follow Pennsylvania’s Right-to-Know Law throughout declared disaster emergencies
- eliminates the disaster/emergency exception to disclosure
- requires the state Office of Open Records to issue guidelines for responses with each disaster declaration
- requires disclosure of any data used to underpin an emergency declaration
Levittownnow | Bill Sponsor Urges Governor To Reconsider Veto Of Transparency Legislation
+1 State Legislature Gives college Athletes Endorsement Authority
Where: Nebraska
The legislation: LB962 (2020 | NE) Nebraska Fair Pay to Play Act
Is it modeled after other state legislation? Yes, California’s
What do opponents say will happen to college athlete recruitment?
- donors or business leaders may play a leading role in recruiting
- offering the prospect of lucrative endorsement prospects or opportunities to recruits
Lincoln Journal Star | Legislature authorizes endorsement contracts for college athletes
COVID legislation. Allowing Legislatures to Overrule Governors.
Where: Pennsylvania
A constitutional amendment would allow a simple majority of the Legislature to overturn a Governor’s Emergency Declaration.
Who is behind the legislation? Republicans
Does the legislation need Governor approval? No
KYW 1060 | Bill limiting Pa. governor’s emergency declaration power advances
BLM +1 State Passes Legislation
What reforms passed the Minnesota legislature? Passing 102-to-29 in the Minnesota House
- ban on chokeholds and neck restraints
- prohibits warrior-style training for officers
- more data collection surrounding deadly police-involved incidents
- requiring officers to intervene
- creates a new state unit to investigate deadly police-related incidents
- funds crisis intervention training and incentives for officers to live in the communities where they work
- establishes a council of arbiters to handle cases of police misconduct
@WashingtonPost | Minnesota passes police accountability measures
COVID. State Legislature: Relief for Tourism
Where: Wyoming
What relief is considered for Wyoming’s tourism? The legislature is considering using $2 million from federal relief to specifically bolster tourism industry
How will funds be allocated? Compensated losses would be tied to events with regional and local significance
Which businesses could qualify?
- organizers of qualifying events
- hotels
- bed and breakfast operators
- dude ranches
- other hospitality businesses
AP | Wyoming Legislature may consider relief for tourism sector
Casper Tribune | Legislature considers relief package for Wyoming’s tourism sector
Want to Fill an Unemployment Compensation Fund? Revenue Source: Gig Economy
Where: Massachusetts
What is the new revenue source? Suing gig economy companies to convert independent contractors to employees for which unemployment and payroll taxes would be paid
Is Massachusetts first up to say gig economy work is employment based? No, California’s AB 5 led the way.
Subscribers of InfoHive can find several years of posts of quick facts easily explaining the legislation, the lawsuits, the regulatory actions that detail California tackling this growing issue.
Reuters UK | Massachusetts sues Uber, Lyft over driver status as contractors
COVID and the Tennessee Capitol. New Rules.
What new rules are in store for the Tennessee Legislature thanks to COVID?
- closing the Capitol campus to the public
- temperature checks for employees and guests entering the building
- masks required in common areas
- plastic glass dividers in committee rooms and chamber floors
- signage encouraging social distancing
- surfaces frequently are sanitized.
COVID RESPONSE. County Funds for Outdoor Business Pivots
Where: Marin County, CA
What county funds are available to help businesses adapt to outdoor business models?
- grants of up to $20,000 to local governments to convert roads into commercial spaces
- creating public space for the public and outdoor dining
Marin Independent Journal | Marin grant program offers virus aid for outdoor commerce
Tax Dollars + Stadiums. “Throw a Billion Dollars from the Helicopter.”
New documentary called “Throw a Billion Dollars from the Helicopter” brought to you by the CATO Institute.
A stadium in the documentary: Texas Rangers Arlington stadiums
The title is courtesy of a sports economist who said, “if you want to generate economic development in a city you’d do better to just take the money, convert it into $20 bills, get a helicopter, and then throw “a billion dollars from the helicopter” down on the city.”
Viewing platforms: Vimeo and Amazon Prime.
BLM Legislative Fix. Economic Opportunities.
Where: North Carolina
What: H 1233 (2020 | NC)
- Creates House Select Committee on Combating Systemic Racism with 28 members, half from each party.
- Recommendations on 6 areas of reform: (i) criminal justice, (ii) State government operations, (iii) economic opportunities, (iv) education, (v) health, and (vi) housing
- Committee dissolves at the end of 2020
COVID Response. Anatomy of Economic Development Funding Opposition. (not from the right)
Where: Nevada
Who is asking Nevada to stop “corporate subsidies?” Unions
What alternatives do unions point to for revenue sources for Nevada?
- economic development subsidies
- corporate tax loopholes and deductions, particularly in mining
Fox 5 Vegas | State employees union demands governor, Legislature cut corporate subsidies
COVID moves a Legislature out of its Capitol
Where: Maine
How is the Maine Legislature adapting to social distancing requirements in a covid world? By considering meeting in the Augusta Civic Center
Considerations that favor the larger location for the legislature?
- how to work with Gov. Mills’ order barring gatherings of more than 50 people
- how can the public attend? should the public attend?
- how to set up video and audio systems
- moving employees and their equipment across the city
Bangor Daily news | If the Maine Legislature makes a summer return, it may not be at the State House
BLM Legislation. Public disclosure of Police Misconduct
The State: Hawaii
The legislation: HB 285 (2020 | HI)
What will Hawaii’s HB 285 do?
- require disclosure of the name of law enforcement officers who are suspended or dismissed for misconduct
- require the disclosure of the details surrounding the misconduct
The opposition: State of Hawaii Organization of Police Officers
How is this new? for 25 years, Hawaii protected from disclosure this information
Honolulu civil beat | Hawaii Legislature Removes Police Exemption For Misconduct Cases
How a Plains State Looks to Boost TurnOut with Gambling & Cannabis
The state: Nebraska
The November propositions in Nebraska that look to boost turn out:
- 20% tax on gaming to fund property tax aid
- Medical marijuana
Lincoln Journal Star | Don Walton: Having marijuana, gambling on ballot should boost turnout
COVID Pension Response to funding Issue
The pension system: CALPERS
The method to handle a funding issue: Borrow funds at the new record low rates
Private Equity News | Calpers has a fix for its massive pension shortfall – borrow more
3 Ways COVID Impacts Public Pensions
- The market
- has stabilized and recovered March losses
- is equal to 12 months ago
- most plans use “smoothed” actuarial assumption over 12 months
- Funding ratios
- have stabilized since 2016
- Return assumptions
- over the next 10-20 years likely not reached
1 thing pension systems should avoid: Pension-contribution holidays
Opportunity Zone demographics meet BLM
Who compiled the demographics? PEW Charitable Trusts
The demographics in Opportunity Zones:
- 27.7% average poverty rate
- 60% of opportunity zone residents are nonwhite
Why review demographics of opportunity zones in an era of Black Lives Matter? Because Opportunity Zones
- don’t account for struggles of minority owned businesses
- don’t take into consideration access to capital
- don’t take into consideration red lining
PEW | Black Businesses Largely Miss Out on Opportunity Zone Money
Local Tax Proposals. Tax Fiber Lines like Phone Lines.
Where: St. Louis, MO
What tax rate would fiber services pay? 7.5% gross receipts tax, the same tax levied on telephone service
What fees does fiber pay without the 7.5% gross receipts tax? a right-of-way fee of $2.20 per linear feet
What do opponents say about the right of way fee?
- one of the highest in nation
- barrier to entry for other companies
- a gross receipts tax allows the tax to be paid once the company has customers
St. Louis Today | Revamp of St. Louis tax for fiber network providers may go on Nov. 3 ballot
COVID tax revenue gap. Is a Vape Tax the solution?
How many states have adopted a vape tax? 21
Why is a vape tax not a significant revenue source in the short term?
- The MN tax rate of 95% deterred purchases
- If vape is highly taxed, the purchasers move to cigarettes
Tax Foundation | States Looking to Fill Budget Gaps with Vapor Tax Revenue Likely to be Disappointed
3 Methods to Tax Data
- Tax digital services
- Tax digital advertising
- Tax the sale or utilization of consumer data
Has any government adopted a digital services tax? Yes, the UK
What are the revenue estimates? The UK digital services tax was estimated to raise $450 million-$500 million/year
Tax Foundation | New York Lawmakers Float New Data Tax Proposal
Novel Data Tax
Where: New York
How will data be taxed? An excise tax on the sale of data in New York
What are the 4 steps in the tax implementation?
- Quantify the amount of data generated by New Yorkers that is commercialized
- Create a regulatory process to register and disclose these data transactions
- Calculate the tax—a transaction fee or percentage of net revenue
- Apportion state & local government share of tax revenue
Wall Street Journal | A Tax on Data Could Fix New York’s Budget
COVID Local Tax TREND.
Where: Seattle
The proposed tax:
- 1.3% tax on the payroll expenses of large businesses
- estimated to generate $500 million/year
- applies to businesses with $7 million+ in Seattle payroll
- subcontractors would be considered to be on a company’s payroll for purposes of the tax
- will apply to 800 employers
How will the revenue be allocated?
- $200 million for cash assistance to low-income households impacted by the COVID-19 crisis
- 75% of remainder to affordable housing
- 25% of the remainder to the city’s Green New Deal efforts
Tax Foundation | Seattle Officials Return with New Proposal for Taxing Employment
COVID Local Tax Response.
Which city? San Francisco
What tax is being proposed? The Overpaid Executive tax
Does it require voter approval? Yes
How will the Overpaid Executive tax apply? A company would pay the tax when these conditions are met:
- The company’s highest-paid executive earns more than 100 times
- The median amount paid to the San Francisco based company employees
What is the COVID connection? San Francisco has lower revenue estimates due to COVID and this tax is estimated to raise between $60 million and $140 million annually
Do other city’s impose similar taxes? Yes, Portland Oregon imposes a pay ratio surtax
Route 50 | San Francisco Voters to Decide on Taxing Companies With Outsized Executive Pay
BLM Legislation. Moratorium on Facial Recognition Software
Where: New Jersey
What legislation is New Jersey considering? A4211 (2020 | NJ)
What will A4211 do? Prohibit the use of biometric recognition software by law enforcement
Why? Biometric software (facial recognition software) has been pulled by developers for its potential to contribute to racial profiling
BLM Legislation. Diversity Training for Law Enforcement + More Government Employees
Where: New York
What legislation is New York considering to require diversity & inclusion training? A10601 (2020 | NY)
What new training is required? basic & pre-employment training concerning diversity & inclusion
Who has to take the new diversity & inclusion training?
- state police officers
- municipal police officers
- firefighters
- corrections officers
- first responders
- emergency medical technicians
- advanced emergency medical technicians
BLM Legislation. Prohibiting the Use of Tear Gas
Where: New York
What legislation is New York considering? S8514 (2020 | NY) prohibiting the use of tear gas by law enforcement personnel
BLM Legislation. Requiring De-escalation training
Where: Michigan
What: HB 5387 (2020 | MI)
What new training will law enforcement have to complete under HB 5387?
- De-escalation techniques
- Implicit bias training
- Procedural justice training
- Mental health resources and support available for law enforcement officers
- Use of alternative nonlethal methods of applying force
- Training to use the least amount of force for the safest outcome
BLM Legislation. Amend Qualified Immunity for Law Enforcement
Where: Louisiana
What: HB 51 (2020 | LA)
How will HB 51 amend qualified immunity? By prohibiting the use of qualified immunity as a defense for wrongful death or physical injury causes of action against law enforcement
BLM Legislation. Law Enforcement Reforms in Colorado with RFPs
What: SB20-217 (2020 | CO), Enhance Law Enforcement Integrity
How does SB217 reform law enforcement in Colorado?
- Creates a new use of force standard with specific guidelines for protests
- Prohibits chokeholds
- Requires officers to intervene if a colleague is using unlawful physical force
- Failure to do so: decertification
- Requires all local law enforcement agencies and the state patrol to issue body cameras to officers
- Requires all body cameras be activated during interactions with the public
- Requires a police officer to have a legal basis for making contact with the public
Fantasy Sports. More Movement to ESPORTS.
Why esports? E-sports isn’t as impacted by pandemics.
Why should policy & rule makers pay attention? Esports is big business.
Who: Sleeper, a fantasy sports app, that raised $20 million Series B fundraising led by the venture capital firm Andreessen Horowitz.
Sleeper investors include: NBA All-Star Baron Davis, Pittsburgh Steelers wide receiver Juju Smith-Schuster, Twitch COO Kevin Lin, and ESPN basketball analyst Ros Gold-Onwude. NBA star Kevin Durant & his business partner Rich Kleiman.
Sport Techie | Fantasy Sports App Sleeper Raises $20 Million to Expand Into Esports
Changing the Rules of State Statue Removal
Welcome to Tennessee. SB 1694 (2020 | TN) a bill about the Tennessee Capitol Commission has been amended to change statue removal.
How did the bill get amended to statue removal? By not addressing statue removal, and instead changing the composition of the Capitol Commission to be heavily weighted to members of the Tennessee House.
Police Reform Bills Aplenty This Week.
Colorado: SB 217 (2020 | CO)
- bans police use of chokeholds
- limits the allowed use of deadly force
- requires an officer to intervene if a colleague is inappropriately using excessive force
New York is considering a package of bills that will:
- prohibit the use of chokeholds
- classify some false 911 calls as hate crimes
- clarify a right to videotape arrests
- require police officers to file reports when they discharge their weapons
- require police departments to start compiling data on the demographic breakdown of those they charge
- permit the release of police officers’ disciplinary records
Politico | Legislature begins to pass police accountability package
California: amend existing legislation
- to make it illegal to use chokeholds and a carotid artery restraint tactic to forcibly detain a suspect
- supported by the California Medical Association
KPIX | Leaders In State Legislature Back Ban On Police ‘Sleeper Holds’
Vermont: S338 (2020 | VT) The Justice Reinvestment Bill
- ban on chokeholds
- mandate the use of body cameras
- expand the collection of traffic stop race data
- reduce the population of incarcerated Vermonters
- invest savings in strategies to improve public safety
Hemp Rules in Vermont
Which Vermont agency was charged with hemp rule making? Vermont Agency of Agriculture, Food and Markets
What requirements do the rules place on the hemp industry?
- record-keeping
- reporting
- testing
- labeling
- disposal of non-compliant crops and products
- inspections
- enforcement
- no residency requirements
- no minimum acreages
- no limitations on the numbers of registrants
STATE OF VERMONT Agency of Agriculture, Food and Markets | Hemp Program
Local TREND. Reparations Commission funded by Cannabis Tax.
Where: 1st City to create a Reparations Commission was Evanston, IL in 2019
Next City considering a Reparations Commission: Chicago
What does Evanston’s Reparations Commission look like?
- Funded by a reparations fund using the first $10 million of local taxes on the sale of recreational marijuana
- Funded programs will begin in 2021
- Grant funds could fund housing, business startups, and health care access for blacks in the community
Route 50 | One City Considers Creating a Reparations Commission
Fantasy Sports Legislation Progress in Lousiana.
What: HB 357 (2020 | LA)
How much did the passage cost? Estimated that DraftKings and FanDuel spent $1 million
What’s new?
- Definition of confidential information
- An August 1, 2020 rule making deadline for tax rates and enforcement parameters
The Advocate | Fantasy sports measure breezes through Senate
Anatomy of a COVID Economic Recovery Plan = School Voucher Avenue
Who crafted this economic recovery plan? The Alabama Policy Institute
The economic recovery plan in Alabama: Responsible Efficient Solutions to Open and Revive the Economy
The goals:
- Coronavirus liability protections
- Restructure how quarantines are issued with collaboration between legislative and executive branches
- Must blanket the state in full access to broadband internet
- Licensure waivers that have occurred during COVID should continue for at least 12 months
- Renewal of the Alabama Jobs Act to incentivize the growth of existing businesses and the recruitment of new employers to the State
- Education freedom….vouchers/education savings accounts
Alabama Today | Alabama Policy Institute unveils plan to help Alabama recover from COVID-19
Procurement Contracts + Pandemic Clauses
Where are pandemic related contract provisions popping up? In Force Majure clauses + in Material Adverse Change clauses
What is the negotiated trade off?
- businesses will likely face demands to pay more / give up something
- if business wants to walk away from a deal in the event of a second wave of the virus
Bloomberg Business Week | Corporate Contracts Get a Rewrite for the Post-Pandemic Era
COVID Legislative Response: Expand Sports Betting to Online Betting
New York legalized sports betting prior to 2020, but now a legislative push seeks to legalize online sports betting for its revenue potential to offset COVID revenue losses.
The legislation: S6234 (2020 | NY)
What special provisions will be included?
- Funding for gambling addiction
- Limits on betting
- The ability to freeze accounts
- Gaming Education
Golden Casino News | New York Lawmakers Push for Legalizing Online Sports Betting
COVID + Cannabis Legislation= Economic Recovery
What is the estimated economic impact of cannabis for 2020? $17 Billion
Why is cannabis legislation an economic regenerator?
- History.
- Alcohol helped the U.S. out of the Great Depression
- Medicinal.
- Unpublished research indicates cannabis has a positive impact on COVID treatment
- Employment
- Lousiana HCR 81 (2020 | LA) creating a task force to report on the workforce benefits of cannabis industry
Governing | Legislative Watch: The Cannabis Industry in the Age of COVID
COVID Rules at Colorado Capitol Building
- Masks required for the public
- No admittance for people displaying a 100.4 F temperature
- Those who have had their temperatures checked will wear a wrist band
- State lawmakers will sit farther apart
- Some lawmakers will participate from the public viewing gallery
Anything new? Yes, the wrist bands for the temperature approved public
CPR News | Colorado Lawmakers Tighten Public Health Rules At Capitol For Rest Of Session
COVID Business Liability Protection Legislation
Where: Kansas
What: HB 2244 (2020 | KS)
How does it protect a business’ liability?
- a healthcare provider is immune from civil liability
- applies to any claims for damages or liability that arise out of or relate to acts, omissions or healthcare decisions occurring during any state of disaster emergency declared
- a person who designs, manufactures, labels, sells, distributes, provides or donates a qualified product in response to the COVID-19 public health emergency shall not be liable
Exceptions:
- gross negligence
- unless can be shown by clear and convincing evidence that a reasonably prudent premises owner would have taken additional precautions
- temporary: expires 90 days after the declared emergency
Indiana Gazette | Kansas lawmakers OK barring COVID-19 suits, curbing governor
COVID + Pensions = Cost of Living Adjustments
Where: Oklahoma
What: Approved a Cost of Living Adjustment payment to 6 state pension systems
Why the COLA?
- The last COLA was 12 years ago
- time to “take care of those who have taken care of us”
The legislation: HB 3350 (2020 | OK)
COVID State Mortgage Reform by Realtors
State: Minnesota
The realtor association: Minnesota Realtors, a 100 year old trade association
What policy changes do Minnesota Realtors want to mortgages?
Mortgage debt cancellation tax relief
Why is mortgage debt cancellation tax relief so important?
Offer property owners relief from having mortgage debt treated as “income” and taxed; particularly important during tough and uncertain economic times like the current pandemic
Anatomy of Cannabis Restrictions in a Red State
Where: Missouri
What restrictions were placed on edible cannabis products?
- No shapes that resemble “the shape of a human, animal, or fruit, including realistic, artistic, caricature, or cartoon renderings.”
- Geometric shapes are A-OK, because math is fun
What restrictions are placed on labeling and operations?
- adopt the universal marijuana packaging label
- dispensary operators, employees, & contractors must undergo state and federal criminal background checks
The number of dispensaries: 192
NASDAQ | Missouri Legislature Passes Bill Banning Certain Forms of Marijuana Edibles
Another Cannabis Residency Requirement Bites the Dust. COVID Reaction.
Where: Maine
Why did the Maine cannabis residency requirement for business licenses fall?
- A lawsuit challenging the requirement
- COVID, led to revenue shortages, and eliminating the residency requirement opens Maine up to out of state dollars and operators
Any new COVID regulations pending for cannabis in Maine?
Yes, when to open retail cannabis locations and what COVID requirements should be in place
Cannabis Wire | Maine Lifts Residency Rules for Cannabis Industry After Lawsuit
+1 Legislature Meets with COVID Rules
Where: Hawaii
What are the new rules for the Capitol in Hawaii?
- State Capitol will be closed to the general public
- Public will submit written testimony
- All hearings and sessions will be live-streamed
- Temperature checks for legislators and staff
- Masks must be worn in all public spaces
- Workspaces will be thoroughly cleaned
- Mandatory physical distancing rules
- The Senate will be able to vote remotely
- The House members intend to be present in the Capitol
Big Island Video News | TODAY: Hawaiʻi State Legislature Reconvenes
Fantasy Sports Adapts to COVID
How is fantasy sports adapting in a COVID economy?
- It’s adding competitive corn hole from the American Cornhole League (ACL)
- It’s adding Esports. This is serious big business, haven’t you watched Ballers?
Cannabis Legalization + COVID Revenue Source
Where: Texas
What are the revenue estimates if Texas legalizes cannabis?
- $1 Billion in sales tax revenue
KEYE | Experts say marijuana legalization could alleviate Texas economic losses from shutdown
State Revenue Bright Spot: Scratch Off Lottery Tickets
How the year over year lottery ticket sales look:
- In Oklahoma, 75% increase, almost entirely driven by scratch off ticket sales
- In Texas, 24% increase
- Sales for the week of May 2nd, were the highest on record at $146 million
Stateline via Route50 | The sales are a rare bright spot for state budgets.
COVID Rules in the Alabama Legislature
New rules greeting the Alabama Legislature are:
- Legislator spacing, seating legislators on various floors, including the gallery
- Masks required
Montgomery Advertiser | Alabama Legislature returns to work amid coronavirus outbreak
COVID Rules in the California Legislature
What will be the new normal at the California Capitol?
- Temperature checks and health screening interviews at public entrances
- One person per elevator ride
- limits on in-person public seats (committees, galleries)
- Committee witnesses will be video conferenced into committee meetings
- Plexiglass shields in front of those who wish to comment from the public seating area
Anatomy of COVID Relief State Legislation
Where: North Carolina
How did North Carolina appropriate COVID relief?
- $125 million to expand a low-cost small-business loan fund
- $85 million for five universities for COVID-19 research and treatment
- $95 million to help rural and teaching hospitals
- $50 million to purchase personal protective equipment
- $35 million to purchase computers for students and staff in K-12 public schools
- $75 million to sustain school nutrition programs
- $44 million for online summer school for the University of North Carolina system
- $150 million to local governments
- $25 million to expand virus testing and tracing
WXII | North Carolina legislature unanimously passes $1.6 billion COVID-19 recovery package
COVID Rules in Louisiana Legislature
Lousiana Legislature is considering the following new rules of operation for the new normal:
- NO mask requirements, incumbent upon individuals
4WWL | Legislature divided over wearing masks, when to reopen
New COVID Rules in Oklahoma Legislature
The Oklahoma Legislature will be operating under these new parameters when it reconvenes:
- Visitors will be screened for symptoms of COVID-19 upon entry
- medical professionals from OU Health Sciences Center will conduct screenings
- Everyone will be encouraged to wear a mask
- Social distancing protocols will be implemented with signage
- includes committee hearings and galleries
- Lobbies outside the House and Senate chambers will be closed
- No Events, Capitol tours, or large groups
- Limited number of legislative staffers
- Daily disinfection of the Capitol
The Oklahoman | When Legislature reconvenes, Capitol will be open to public … sort of
+1 State Cannabis legalization post-COVID
Where: Minnesota
What: SF 4585 (2020 | MN)
The tax method: gross receipts tax
Minnesota uses a gross receipts tax method for alcohol sales at a 2.5% on alcohol gross receipts.
Minnesota Department of Revenue | Calculating Gross Receipts Tax
COVID Legislation. Prohibit Tax Credits for Corporations Receiving Federal COVID Funds
New York S8230 (2020 | NY) applies to a company that:
- receives federal COVID relief funds
- and, then buys back its own stock
S8230 (2020 | NY) prevents a company from receiving tax credits in New York for 3 years from the time it buys back its stock.
COVID Legislative Response: Reduce Taxes
Small Business Tax Credits: Michigan HB5741 (2020 | MI)
Property Tax Extensions with no Penalties: Minnesota looks to extend commercial, industrial & utility property taxes with no penalties HF4593 (2020 | MN)
Exempt PPE from sales tax: Ohio seeks to exempt personal protection equipment from sales taxes SB 307 (2020 | OH)
Property Tax Freeze to 2020 levels in Pennsylvania HB 2431 (2020 | PA)
COVID What a Local Economic Response Task Force Looks Like
Where: San Angelo Texas
What partnership created the COVID economic response task force?
- 6 San Angelo economic development organizations:
- City of San Angelo Development Corporation
- ASU Small Business Development Center
- Concho Valley Workforce Development Board
- Tom Green County
- Concho Valley Council of Governments
- San Angelo Chamber of Commerce
Goal of the Economic Response and Recovery Task Force : sharing information on the converging economic situations and creation of a collaborative set of solutions
Results:
- Launched collectively, the COVID-19 Resource Hub link on at www.SanAngelo.org for real-time, updated resources for small businesses and individuals
- Coordinated immediate information-sharing about layoffs, companies, and independent business owners
Go San Angelo | Economic Response and Recovery Task Force formed in San Angelo due to COVID-19
Anatomy of an Economic Development Deal for Tesla Truck Factory
Who is offering the economic development deal? Joplin, Missouri
Package deal total: $1 Billion
What does the $1 Billion deal include:
- 50% discount on 1,042 acres
- 100% tax abatement for 12 years
- Offering its historic science background including:
- 150 battery engineers
- 500+ licensed engineers within a 60-mile radius
- home to programs that have helped power Apollo missions, lunar landings, and ballistic missiles
- median hourly earning is $27.86
- Less than site competitors Nashville ($33.18) & Austin ($37.50)
Future Car | Missouri Attempts to Court Tesla With $1 Billion Package for Cybertruck Factory
COVID Legislation TREND: Cashless. Touch limited Transactions.
Where: Congress.
What: House Financial Services Committee’s Task Force on Financial Technology proposed legislation that any swipe, dip or tap transaction at a merchant point-of-sale terminal would not trigger a signature
Who: Bank of International Settlements
What did the Bank of International Settlements do? fueled concerns that the coronavirus could be transmitted by handling cash
Financial Services Committee’s top Republican, Rep. Patrick T. McHenry of North Carolina said, ““We need to take a 21st century approach to combating the impacts of a public health crisis in our modern world.”
Countries making move to contactless payments: Austria, Germany, Hungary, Ireland, the Netherlands, the United Kingdom
CQ Roll Call via Governing | The Future of Cash Transactions in Question Amid COVID-19
COVID Fund Use = Rural Broadband
Where: Alabama
What: The Legislature proposes using $800 Million of $1.7 Billion COVID funds for a broadband fund
Can a State use federal COVID funds for broadband? Unclear
Montgomery Advertiser via Governing | Alabama Proposes $800M of Coronavirus Fund for Broadband
27 States Begin Re-Opening
Alabama
Alaska
Colorado
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Maine
Michigan
Mississippi
Montana
Minnesota
Missouri
Nebraska
New Hampshire
North Dakota
Oklahoma
Kansas
South Carolina
South Dakota
Texas
Tennessee
Utah
West Virginia
Wyoming
Governing | Reopening the Economy Under COVID-19: States Plot a Way Back
New York Times | See Which States Are Reopening and Which Are Still Shut Down
Texas Attorney General Opinion. County Court Public Input Limits.
In KP-0300 (2020), Texas Attorney General explains that public input can be limited like this:
- one public comment period for the entire agenda at the beginning of an open meeting, rather than public comment per agenda item
- comment time may be limited, so long as the cap is reasonable
+1 State Denies Open Records During COVID
Where: Texas
What public information requests are being denied due to COVID? information concerning COVID infections at the 13 state supported living facilities
What exception to disclosure is offered? The federal Health Insurance Portability and Accountability Act
Thank you for subscribing to our newsletter.
Great things are just around the corner!