Finance & Revenue

If Texas legalized/decriminalized cannabis, what would the numbers look like in Texas according to Vicente Sederberg LLP ?

• $2.7 billion in cannabis sales annually 
• $1.1 billion in marijuana tax dollars over the biennium
•  20,000-40,000 jobs directly created 
• $10 million annually if business licensing fees (with a $5000 licensing fee)
• $311 million in savings per year in criminal justice resources

Vicente Sederberg LLP  | Legalizing Cannabis in Texas Could Generate $500+ Million in Annual Tax Revenue, Create Up to 40,000 Jobs

Utilizing CARES Act Funds, Oklahoma City has created a program that funds minority small businesses.

Why is OKC prioritizing minority owned businesses?

• They’ve had a greater economic impact from he pandemic
• U.S. Chamber of Commerce warned in August that minority-owned businesses were denied in higher numbers for loans to help survive the pandemic

The Funding program:

• $2 million total grants
• for businesses with 25 or fewer employees
• Offering grants up to $25,000 each

Governing | Oklahoma City Gives More Funds to Minority Small Businesses

Where: New York

How is New York connecting businesses, PPE and economic development?

• Create a tax credit for the purchase of PPE
• If the tax credit exceeds an allowable amount, the credit can carry over
• Creates a program for the state to purchase PPE and to sell it to small businesses at cost

S9058 (2020 | NY)

New York is temporarily adding bankruptcy legal assistance to its state funded legal assistance program to help businesses impacted by COVID restrictions

 A11084 (2020 | NY)

 New Jersey will put $6 million into a state program to help suburban & rural small businesses with rent payments if:

• the business leases space of less than 5,000 square feet
• grants are limited to $10,000 per grant.

S2983 (2020 | NJ)

Louisiana wants to help its fishermen, bars and breweries with funding from a new Bar Assistance Relief Program.

 $2,000 grants if they have no more than 50 employees & are not subsidiaries of, or owned by, larger businesses HB85  (2020 | LA)

Michigan is proposing loans for small businesses to cover property taxes for businesses closed by executive order. Loans would have zero interest and 2 year terms. H6242 (2020 | MI)

South Dakota wants to use unspent COVID funds for business grants. Eligible businesses would have seen a loss of 25% of revenue and have revenue below $38.5M. SCR601 (2020 | SD)

Total Revenue Collected: $100+ million since 1/1/2020 legalization

State revenue from 9 months of cannabis legalization:  $69.7 million through the Cannabis Regulation Fund

Sales tax portion of cannabis legalization: $36.1 million from state and local sales taxes

Revenue that goes directly to cities: $16 million

How are state cannabis revenues allocated?

•  50% reinvested through the Restore, Reinvest and Renew (R3) Program in communities that have been disproportionately impacted by the justice system or directed to address substance abuse and prevention, and mental health concerns

Illinois Department of Revenue | Pritzker Administration Announces $100 Million Milestone in Cannabis Revenue Collected

5 2020 State Ballot Propositions for Marijuana

• Arizona
  • legalization with criminal justice reforms
  • estimated sales by 2024: $700 million
  • Opponents: billionaire casino magnate Sheldon Adelson, tire retailer Discount Tire, pharmaceutical company Insys, Arizona Chamber of Commerce and Smart Approaches to Marijuana
• New Jersey
  •  legalize cannabis for adults 21 and older
  • 6.625% tax rate
• South Dakota
  • medical cannabis program and registration system + legalization for all residents
• Montana
  • legalization
  •  20% tax on recreational cannabis
• Mississippi
  • medical use only

This week Pennsylvania Governor also encouraged the Legislature to legalize recreational marijuana and to decriminalize it.

KDKA | These States Are Voting On Marijuana Legalization This November

The State: Arizona

What’s happening in Arizona: Claims the the Governor is asking law enforcement not to enforce restrictions against bars and restaurants that violate Executive Orders. The State Attorney General has taken issue with this approach.

Who should be picking the winners/losers (which businesses can be open): According to the Arizona Attorney General, that’s the Legislature’s job.

So what did the Legislature do? Created the Ad Hoc Study Committee on Legislative Oversight of Emergency Executive Powers

Arizona Capital Times | AG challenges governor’s emergency powers

AZ Mirror | Legislative committee hopes to curb Ducey’s emergency powers

The friendly folks at the Tax Foundation put together an index of the most tax competitive nations.

What does it mean to them to be tax competitive? “A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government’s priorities. In contrast, poorly structured tax systems can be costly, distort economic decision-making, and harm domestic economies.”

Who is #21? The U.S.A

What’s the top 10 look like?

• Estonia
• Latvia
• New Zealand
• Switzerland
• Luxembourg
• Lithuania
• Sweden
• Czech Republic
• Australia
• Slovak Republic 

Where are the U.S. tax strengths:

• expensing for business investments
• Last-In-First-Out treatment of the cost of inventory
• Corporations can deduct property taxes

Where are the U.S.’s challenges?

• progressive income tax with a top rate of 46%
• does not exempt foreign capital gains income
• real property tax burden is among the highest

Tax Foundation | 2020 INTERNATIONAL TAX COMPETITIVENESS INDEX

• 73% say fintech is the new normal for personal money management

What regulation is necessary to maintain this growth in consumer fintech use?

• solid regulatory framework to foster that growth while protecting customers’ data privacy and security
• clear rules
• rules must have a pro-technology mindset
• stakeholders input is crucial to enact robust data privacy and security measures to ensure an acceptable level of safety and soundness in digital financial transactions

CQ Roll Call via Governing | COVID Accelerates FinTech Adoption for Users and Companies

The lotto revenue records:  

• $6.704 billion in sales during its 10th-consecutive record-breaking year
• $452.5 million increase (7.2%) from 2019
• $1.684 billion goes toward Texas education and veterans. 
  • $1.661 billion to the Foundation School Fund
  • $22.2 million to the Fund for Veterans’ Assistance

Reform Austin | Record-Setting Year for Texas Lottery as Texans Play More During Pandemic

How much CARES Act funding is PA trying to appropriate? $1 Billion

What are education advocacy groups suggesting as options?

• Cash payments to parents to use for supplies, therapy, school costs via education scholarship accounts
• $500 Million would translate into $1000 per family with students
• The ESAs would be first come first serve with priority to low income families

Is PA creating the wheel with this ESA program structure? No, Arizona, Florida and Nevada have enacted ESA programs

What do teachers and administrators say should happen with CARES funds? Distributed to the 500 school districts

Pennsylvania Capital Star | Should Pa. convert $500M in CARES Act cash into education grants for families? A proposal has advocates split on familiar lines

What’s happening? The City of New Boston wants streamers pay 5% of their local gross revenue as a fee

What’s the City’s argument?

• The rules in Texas are that streamers have to file an application with the Public Utility Commission of Texas for certification
• Netflix and Hulu did not
• Even though they didn’t they still have to pay the quarterly franchise fee.

is this new and novel? No, of course not, it’s been tried before and is still pending in court in Missouri from a 2018 suit by Creve Couer, MO. There Netflix said it isn’t a video service provider and thus the rules did apply.

What does this smell like? A revenue generating issue for a pandemic Legislature.

Hollywood Reporter | Texas Town Sues Netflix, Hulu Over Utility Fees

Law 360 | Netflix, Hulu Want Texas City’s Bid For Wireline Fees Tossed

Where: Denver CO

B2 on the November ballot will increase Denver’s sales tax by 0.25%, making the total sales taxes 8.56%, up from 8.31%.

How much revenue would the homeless resource sales tax raise? An estimated $40 million per year

Is this a standalone measure to address homelessness? No, it would work with the current social impact bonds in Denver to address homelessness.

What do Denver’s social impact bonds for homeless resources fund?

• The Colorado Coalition for the Homeless and the Mental Health Center of Denver use police arrest data to identify people experiencing chronic homelessness
• This partnership helps identified chronic homeless in contact with housing and health, food, transportation, and legal and other support

Denverite | Business leaders are urged to say yes to raising the sales tax to address homelessness in Denver

The Senate District: SD 6, running including Brenham, TX & Katy, TX

The incumbent Republican, Chair of the Senate Health and Human Services Committee, on pandemic lockdowns:

“Another of the key issues will be to reform how public health intersects with our constitutional rights and liberties,” she said. “All businesses are essential to someone and there must be more checks and balances about how the draconian public health policies we have seen this year can be used as pretext to take away our liberties and freedoms.”

Let’s dissect it:

• can’t rest the authority in 1 person, like the Texas does now, in the Governor
• need standards before business are shut down
• this is about constitutional liberties and freedoms
• we’re broaching on eminent domain concepts, like compensation, when we shut down businesses or limit people’s freedom

Victoria Advocate | Sen. Kolkhorst, Katy attorney vie for District 18 State Senate seat

Sometimes you read an editorial, and that editorial gives you a laundry list of legislative action, just like this one did for Texas:

1. A bill that moves pandemic response control to health agencies, which Texas legislature considered after Ebola, but which died in Committee
2. An inactive Pandemic task force that didn’t meet often. If you think task forces aren’t going to have required meeting schedules, you’re not paying attention. Welcome to 2020, where the level of attention has intensified.

Houston Chronicle Editorial | Editorial: Texas leaders failed to prepare for a pandemic. It can’t happen again.

Where: Pennsylvania

The legislation: HB2696 (2020 | PA)

What would this bill do? the “Back on Track” bill will give a $1,000 voucher to parents for every K-12 child

What are allowable educational expenses for parents? tuition and fees, textbooks, school uniforms, testing costs, instructional materials, computer hardware or software, counseling services + others

Forbes | Pennsylvania Poised To Turn CARES Money Into School Vouchers

Supporters of using cryptocurrency for sports betting say:

• it allows bettors to remain anonymous
• payouts and payments are electronic and nearly instantaneously
• no surcharges on crypto currency payouts or deposits 

Sports Daily | The Benefits of Sports Betting Using Crypto Currency

Where: Portland Oregon

What proposal to curb protests is being supported by the Portland Police Officer union?

• Give local governments authority to restrict the time, place, and manner of protests
• Establish a 10 p.m. noise ordinance for First Amendment-protected activities located near residential areas
• Establish a 12am noise ordinance for all other locations
• Blocks the imposition of fees and permits for demonstrations deemed legal
• Prohibit any barriers or blockages on sidewalks
• Prohibit destruction of any public or private property, the setting of fires, and ban the possession of use of fireworks, flammable explosives and laser pointers at demonstrations

Ballot initiative name: “protect free speech and safe streets.” 

The Oregonian | Portland police union chief introduces 2022 ballot initiative to limit right to assemble

New York is pondering S8990 (2020 | NY) which would provide financial incentives for child care centers to cover additional hours related to pandemic time constraints.

Its dual purpose goals: Open day care centers and for longer hours to help parents return to work.

A proposal to allow Illinois residents a tax credit for the costs of remote learning education because of COVID.

The policy reason for it? because it is costly to parents to have to leave or tale time from their jobs to provide for remote learning education.

What kind of expenses will the tax credit apply to?

• child care
• materials necessary for online learning
• tutoring materials
• homeschool instruction

The state tax the credit will apply to in Illinois: Illinois state income tax

The legislation: HB 5835 (2020 | IL)

The State: Pennsylvania

The childcare program: COVID-19 Childcare for Essential Workers Grant program

How is the program funded? CARES Funds

Who is eligible: “essential workers” including those working in health care, food manufacturing or food, retail, janitorial services, transit and other industries not closed during the state’s health emergency

When does the program expire? 3 months after the emergency declaration ends in the state

The legislation: HB2809 (2020 | PA)

The state: Texas

The new restrictions on protest, demonstrations, riots, support rallies, opposition rallies- whatever your word preference is:

• causing injury or destroying property during a riot would be considered a felony
• Assaulting a law enforcement officer during riot would lead to a mandatory jail sentence of at least six months
• The use of fireworks during a protest or riot a crime
• New felony to aid riots through funds or assistance from organizations

CBS DFW | Texas Gov. Abbott Announces Proposals For Harsher Penalties To Those Involved In Riots

Where: Florida

What new restrictions are proposed?

• new felony crimes when property is damaged
• new felony when people are injured as a result of protests involving seven or more individuals
• new crime to obstruct traffic during unpermitted protests or demonstrations
• eliminate bail or bond for people involved in violent protests

Echoing a proposal in Texas, the Florida Governor also proposes to punish local governments that reduce spending on law enforcement agencies, by withholding state funds and grants.

This is a great reminder that elected officials rarely recreate the wheel. Imitation is after all the greatest form of flattery.

ClickOrlando | Gov. Ron DeSantis asks state legislature to pass protest proposal

The state: Georgia

What steps did Georgia take to adapt its alcohol regulations in this new economy? The Legislature passed a bill in June to establish requirements for businesses that want to deliver alcohol.

The legislation: HB 879 (2020 | GA)

Which businesses can be approved for home delivery?

• liquor stores
• supermarkets
• convenience stores
• restaurants

What other alcohol law changes were made in this COVID related bill?

• allowing tastings of beer, wine and sprits from just wineries and distilleries to package stores
• Aligns Sunday sales for purchase and consumption to 11am

What is not included in the new delivery provisions? Deliveries from breweries, distilleries or wineries

WABE | Gov. Kemp Signs Bill Allowing Alcohol Delivery With Restrictions

Athens Banner Herald | Georgia issues rules for home delivery of booze

In California, tech companies support a November ballot proposition to overturn a new California state law that treats gig economy workers as employees and not independent contractors. The tech companies have committed $90 million to the ballot initiative to overturn the state law.

Here’s the polling by UC Berkeley Institute of Governmental Studies:

• 39% support the tech companies to overturn the law
  • 53% of Republicans support the overturning of the law
• 36% support the current law and will note NO
  • 42% of Democrats opposing 
• 25% are undecided

Why does this matter? Refreshing our recollection, this legislation also captures workers it did not intend to like magicians and stand up comics.

How much have tech companies spent on the ballot initiative? more than $180 million

Los Angeles Times via Governing | Uber, Lyft Face Uphill Struggle for Gig-Worker Votes

This legislation is as popular as sweet ice tea is in the South.

Michigan: HB 6204 (2020 | MI) makes assaulting a first responder a felony. This includes spitting.

Michigan: HB6158 (2020 | MI) exempts from liability governmental agencies that are performing their governmental functions, like dealing with a riot.

Ohio:  HB735  (2020 | OH) requires law enforcement to wear a clearly visible badge and identification while on duty.

Virginia: HB5125 (2020 | VA) defines a riot as an assembly of 3+ persons with an intent to commit acts of unlawful force or violence that could jeopardize public safety, peace or order. Makes rioting a Class 1 misdemeanor. & if you have a weapon, it is a Class 5 felony.

New Jersey: A4432 (2020 | NJ) requires the state Attorney General to create an outreach campaign to educate the public on legally protesting and demonstrating

Minnesota:  HF2 (2020 | MN) requires its Insurance Commissioner to report on the number of businesses filing claims because of riots and whether those policies increased in price or were cancelled

What is ESG? Investments that address environmental, social, and/or governance considerations. Often referred to from the corporate side as corporate social responsibility

What state added ESG to its state fund investment policies? Oregon, as long as it doesn’t interfere with

What the state treasurer said: “By formalizing our expectations that ESG is an important facet to consider as we evaluate investment opportunities, we’re saying to the companies and managers we invest in that how you do your work matters. We’re also confirming to staff that improving our understanding of how ESG relates to the bottom line matters, too,”

What did the state  Oregon Investment Council say?  the revised top-down policy should not interfere with the system’s fiduciary duty to its beneficiaries, in deference to advancing a social cause

Chief Investment Officer | Oregon Integrates ESG Formally into Investment Policy

The State: New Jersey

The deal to pass a millionaire’s tax in New Jersey: The blocked millionaires passed after a $500 tax cut for families with income under $150,000

The proposed millionaire’s tax:

• the increase applies to income between $1 million and $5 million
• the tax increase will apply to dollars above $1 million
• the new tax rate above $1 million will be 10.75%, up from 8.97%

New Jersey Business | Murphy, Legislature strike millionaire’s tax deal, source and media reports say 

Arizona Department of Gaming is offering tips to keep your friendly office pools alive and legal.

Any lingo I need to know going into this? Arizona talks about these office pools and friend bets as “social gambling.”

Here’s what the agency is saying:

•  host or hosts “cannot receive financial benefit outside participating in the game.”
• all pool money must be paid to the winner or winners
• nonparticipants cannot receive pool money
• no participation fee 
• host cannot keep a percentage of the pool for administering the game
• No minimum purchase to participate (no food, no alcohol)

Arizona Department of Gaming | Social Gambling Tips

Where: Auora Colorado

What sparked this ordinance to prohibit 1st responders from administering ketamine? “the death of Elijah McClain, a 23-year-old Black man who died after he was given the drug in police custody”

Why was ketamine used? To subdue suspects during arrests

What groups support the ban?  The Colorado Society of Anesthesiologists 

CBS News | Aurora temporarily bans first responders from administering ketamine after Elijah McClain’s death

As we know, and have seen on repeat on InfoHive, California passed AB 5 which reclassifies Gig Economy workers as employees following California Supreme Court ruling to the same effect.

AB 5 will also be on the November ballot as opponents seek to over turn it.

What are these unintended consequences? Looping in other independent contracts like comedians,  magicians, freelance journalists, interpreters, mall Santas, freelance physical therapists

The takeaway: Drafting legislation matters and is a delicate and long process

Wall Street Journal | A California Law Was Supposed to Give Uber Drivers New Protections. Instead, Comedians Lost Work

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

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

Rakuten Today | Onions and innovation: Supporting local communities with Japan’s hometown tax program

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

California State Senator Nancy Skinner | CA Legislature OK’s Sen. Skinner’s SB 972, the Corporate Disclosure Act

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

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

Forbes | Recent Attempts To Reclassify Daily Fantasy Sports As Sports Gambling Could Hurt Industry’s Bottom Line

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

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.

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

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

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

Virginia Mercury | Virginia House will legislate the special session remotely after contentious rule changes

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

Idaho Office of the Governor | Special legislative session to address election, civil liability during the pandemic

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

Time | New Tennessee Law Severely Sharpens Punishments for Some Protesters, Potentially Endangering Their Voting Rights

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.

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.

Sacramento Bee | L.A. County to pay $1.35 million penalty after using taxpayer funds to promote sales tax hike

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.

Twitter @BryanforHD2

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

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.

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

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

The Oklahoman | After losing Tesla to Texas, state leaders focus on recruiting automotive suppliers to Oklahoma

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

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

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

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.

The Recommendations by the Legislative Services Division

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

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

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

Oregon Live | The Oregonian | Oregon lawmakers may take up coronavirus liability protections for businesses, schools in next special session

Portland Tribune | Legislature must pass COVID-19 liability protections

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

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

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.”

KP-0322 (2020)

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

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”

Bay State Banner | Legislature extends session deadline

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. 

Rome Sentinel | Legislation would let schools use transportation funds to pay for food delivery costs during pandemic

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. 

Marijuana Moment | Texas House Speaker Says Legalizing Marijuana ‘Could Be A Help’ To Budget Woes, But He’d Vote Against It

Smarkets has been granted gaming authority in Sweden to accept wagers on politics. 

Smarkets also has offices in Malta and Los Angeles. 

Inkedin | Smarkets Given Green Light To Operate In Sweden

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 

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

Best US Casinos | Texas, Why Do You Hate Gambling?

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

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

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

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

Washington Post | Minnesota passes police accountability measures, including banning chokeholds, two months after George Floyd’s death

@WashingtonPost | Minnesota passes police accountability measures

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

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

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.

Cherokee Tribune Ledger | COVID-19 precautions in spotlight ahead of possible Tennessee Legislature special session

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

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.

CATO | Taxpayer Funding for Stadiums: A New Documentary

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

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

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

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

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

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

• 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

Governing | Public Pensions and the COVID-19 Fiscal Dilemma

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

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

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

• 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

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

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

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

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

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

Where: New York

What legislation is New York considering? S8514  (2020 | NY) prohibiting the use of tear gas by law enforcement personnel

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

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

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