Fantasy Sports. More Movement to ESPORTS.

  • June 12, 2020

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

  • June 11, 2020

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.

Tennessean | Legislature passes bill that could stifle removal of Confederate Nathan Bedford Forrest bust

Police Reform Bills Aplenty This Week.

  • June 11, 2020

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

VT Digger | Legislature looks to ban chokeholds, mandate body cameras and expand race data collection

Hemp Rules in Vermont

  • June 11, 2020

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

WCAX | Vermont Agency of Agriculture finalizes hemp rules

Local TREND. Reparations Commission funded by Cannabis Tax.

  • June 11, 2020

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.

  • June 4, 2020

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

  • June 4, 2020

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

  • June 4, 2020

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

  • June 4, 2020

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

  • June 4, 2020

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

  • May 28, 2020

  • 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

  • May 28, 2020

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

  • May 28, 2020

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)

Oklahoma Senate | Senate approves COLA for state retirees

COVID State Mortgage Reform by Realtors

  • May 28, 2020

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

Minneapolis Star Tribune | Tax relief for mortgage debt cancellation key issue for Minnesota Realtors

Anatomy of Cannabis Restrictions in a Red State

  • May 28, 2020

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.

  • May 14, 2020

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

  • May 14, 2020

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

  • May 14, 2020

How is fantasy sports adapting in a COVID economy?

Cannabis Legalization + COVID Revenue Source

  • May 14, 2020

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

  • May 14, 2020

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.

PEW Charitable Trusts | Scratch-Off Lottery Sales Soar

COVID Rules in the Alabama Legislature

  • May 7, 2020

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

  • May 7, 2020

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

Los Angeles Times | Plexiglass shields in front of those who wish to comment from the public seating area

Anatomy of COVID Relief State Legislation

  • May 7, 2020

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

  • May 7, 2020

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

  • May 7, 2020

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

  • May 7, 2020

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

  • May 7, 2020

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

  • May 7, 2020

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

  • April 30, 2020

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

  • April 30, 2020

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.

  • April 30, 2020

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

  • April 30, 2020

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

  • April 30, 2020

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.

  • April 23, 2020

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

  • April 23, 2020

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 

Texas Tribune | Texas will not release information about coronavirus clusters at state-run homes for Texans with disabilities

State Lege Sues State Governor over COVID restrictions.

  • April 23, 2020

Where: Wisconsin

What Governor imposed COVID restrictions sparked the Legislature to sue?

An extension of the stay at home order until May 26th

How is the Legislature challenging the Governor’s action? By arguing the the Governor exceeded his powers

What are legislators saying?

  • “unprecedented administrative overreach”
  • We “ask[ed] the Supreme Court to rein in this obvious abuse of power.”
  • “Wisconsinites deserve certainty, transparency, and a plan to end the constant stream of executive orders that are eroding both the economy and their liberty even as the state is clearly seeing a decline in COVID infections.”

The Hill | Wisconsin legislature sues to block enforcement of governor’s stay-at-home order

COVID. Attorney General Opinion on Local Enforcement of Mask Requirements.

  • April 23, 2020

Who says it is requesting a Texas Attorney General Opinion? Houston Police Officer Union

Why is the Houston Police Officer Union requesting an attorney general opinion? To determine whether Houston Police Department must enforce County Judge’s order requiring everyone over 10 to wear mask, imposing penalties

How do crime statistics in Houston compare thus far for the year?

  • 35% increase in murders
  • nearly 30% increase in burglary

Houston Police Officer Union Letter Dated April 22, 2020

COVID + Open Records Request Denials.

  • April 23, 2020

Where: IOWA

What records are being withheld due to COVID?

  • information concerning state preparedness and response to the novel coronavirus
    • including daily reports regarding the state’s response to the virus and COVID-19
    • including a copy of a pandemic emergency response plan the Iowa Department of Public Health which was created 10 years ago
    • information about businesses that have sought COVID-19 testing from the state

What exception to disclosure is the state government offering? “physical infrastructure, cyber security, critical infrastructure, security procedures or emergency preparedness” can be denied if “disclosure could reasonably be expected to jeopardize such life or property.”

Have other states released their pandemic response plans? Yes

Have other states denied release of COVID related records? Yes

  • Pennsylvania Governor delayed information about how his administration decided which businesses would close
  • Florida Governor unwilling or unable to provide crucial information about its coronavirus response

Des Moines Register | Iowa is denying the public access to some records of its COVID-19 response; ‘When you lose transparency, you lose trust,’ one advocate said

Industry + Regulatory COVID Changes: Restaurant Industry

  • April 23, 2020

Economics behind the U.S. restaurant industry:

  • 15 million employees
  • $899 billion in estimated annual sales

Industry/regulatory changes on the horizon:

  • disposable menus
  • new added cleaning protocols
  • more take out options harnessing untapped virtual component to restaurants
  • safety nets for restaurant workers
  • broader acceptance of no tipping policies
  • operating at 50% previous capacity/reduced occupancy numbers
  • tables further apart
  • sealed silverware
  • servers wearing gloves and masks
  • contactless payment systems
  • sanitizer everywhere
  • post-COVID safety and sanitation training programs

Food & Wine Pro | 21 Ways Restaurants Could Change Forever, According to Chefs

Lege TREND. Preempt Local Disaster Declarations

  • April 16, 2020

Where: Utah

What: A virtual special session convening on April 16, 2020 is likely to include legislation to limit the power of local governments to issue stay-home orders HB 3009 (2020 | UT)

Policy reasons for limiting local government stay at home orders:

  • statewide consistency
  • limit confusion for Utah residents

Salt Lake Tribune | State legislators to consider limiting local stay-home orders during coronavirus

LEGE TREND. COVID Relief Bill Western States

  • April 16, 2020

Where: Utah

The Utah Legislation:

  • H.B. 3005 — Pandemic Response and Consultation Act
  • H.B. 3007 Substitute — COVID-19 Workers’ Compensation Amendments for First Responders
  • H.B. 3009 — Local Government Emergency Response
  • S.B. 3006 — COVID-19 Financial Relief Funding
  • S.B. 3001 — Pandemic Response Appropriations Adjustments

How did Utah Legislature pass the bill?

  • 1st ever all virtual special session
  • In 2018, Utah voters approve allowing the Legislature to be able to call itself into emergency special session
  •  lawmakers will post their bills online at least 48 hours before the session begins
  • each bill will provide a place for the public to give online feedback
  • comments will not be visible to the general public

Salt Lake Tribune | Utah Legislature calls historic special session to address coronavirus impacts

Lege TREND. COVID Relief Bills in the Midwest

  • April 16, 2020

Wisconsin COVID Relief legislation: AB 1038 (2020 | WI)

How did the legislature pass it? By assembling virtually

What does the COVID response legislation include?

  • $75 million in emergency funding during the public health emergency and up to 90 days after 
  •  Suspends the one-week waiting period for people to receive unemployment benefit
  • Clears the way for Wisconsin to receive more money for Medicaid
  • Prohibits insurers from prohibiting coverage based on a COVID-19 diagnosis
  • Eases licensing and credentialing process for health care workers
  • Reduces nurse training hour requirements
  • Makes health care providers immune from civil liability from services provided during the pandemic
  • Require its economic development agency to create a plan to support the major industries adversely affected by the pandemic, including tourism, manufacturing, agriculture, construction, retail, and services

Wisconsin State Journal | Wisconsin Legislature releases COVID-19 coronavirus pandemic response bill

Minnesota COVID relief legislation:

COVID-19HF 4531Gazelka, P.Providing $330 million for COVID-19 response efforts; creating the COVID-19 Minnesota fund. (Ch. 71)
COVID-19HF 4537Howe, J.Providing a presumption for COVID-19 workers’ compensation claims for certain employees. (Ch. 72)
COVID-19SF 3813Relph, J.Transferring funds for public health response planning and preparation for the COVID-19 outbreak. (Ch. 66)
COVID-19SF 4334Benson, M.Providing $200 million for public health response to the COVID-19 outbreak. (Ch. 70)

Minneapolis Star Tribune | Minnesota Legislature passes its 4th COVID-19 relief package

3 Reasons COVID isn’t a disaster for Texas Tax Code Purposes

  • April 16, 2020

Texas Attorney General Opinion KP-0299 (2020) this week tells us COVID isn’t a disaster under the Texas Tax Code because:

  • The disaster exception to the Tax Code is tied to physical damage from a disaster
  • Common usage of “damage” also says that the damage caused must be physical
  • The disaster exception ties damage to improvements only

Texas Attorney General Opinion Request: RQ-0345-KP

Anatomy of state costs for COVID

  • April 16, 2020

Where: Illinois

The total spent: $174 million

What does the $174 million include?

  • medicine
  • protective equipment 
  •  $1.7 million for 2 flights from China transporting personal protective equipment to Illinois
  • $13 million for 200 ventilators

AP | Illinois COVID-19 response price tag $174M, records show

Local TREND. Revenues & COVID

  • April 9, 2020

Where: Portland OR

What are the COVID revenue estimates for Portland?

  • estimate between a $40 million and $100 million impact to discretionary revenues
    • 10%-20% of the city’s general fund
  • $900,000 revenue loss to Portland Parks & Recreation
  • lower  gas tax and parking meter revenue

Portland’s revenue solution: $100 million revenue bond 

KATU | Coronavirus could cost city of Portland $100 million in lost revenues

COVID: Agricultural Waste & Revenue

  • April 9, 2020

Why did COVID increase food waste? Americans spend more at restaurants than they do for groceries

What is happening to the food usually supplied to restaurants & large institutions?

  • restaurants are pivoting to food suppliers for their communities
  • agricultural waste

What regulatory actions are happening in response?

  • Federal agencies are altering agricultural landscape
  • easing rules governing trucking agricultural products
  • easing rules on agricultural imports
  • easing rules on agricultural visas
  • easing rules on labeling requirements for restaurants and manufacturers

What new industry partnerships are emerging?

  • Kroger, the largest U.S. supermarket chain, has partnered with foodservice giants Sysco and U.S. Foods (suppliers of restaurants and large institutions) to share labor and keep store shelves stocked
  • Wisconsin Cheese Makers Association is calling on government acquisition of dairy supplies to distribute to food pantries

Politico | Food goes to waste amid coronavirus crisis

Numbers: How COVID Hit the Texas Wine Industry

  • April 9, 2020

  •  $40 million in financial loss to the wine industry nationally
  • Millions to the Texas wine industry according to the economic development and tourism for the Texas Governor’s Office

How Texas wine industry contributes to the economy:

  • $4.3 billion in wages in 2019
  • $41,000 average wage
  • 104,000 jobs

Economic relief: Economic Injury Disaster Loan Program

“The Texas economy prior to this was the strongest in the country, the fastest job creation, and we’re expecting that when this is all done,” – Adriana Cruz, executive director of economic development and tourism for the Texas Governor’s Office

KSAT | Texas wine industry impacted by coronavirus pandemic

COVID Fines for not social distancing

  • April 9, 2020

Where: Michigan

Who set the fines? Michigan Department of Health and Human Services Director

The fine: civil penalty of up to $1,000 and a process for referral to licensing agencies for violations

The basis: Governor Executive Orders 2020-11, 2020-20 and 2020-21.

Fox 2 Detroit | New Michigan executive order sets fines up to $1,000 for violating social distance rules

Local TREND. How COVID Exposes Flaws of State Preemption of Local Action

  • April 9, 2020

What local action is exposing the limits in state preemption? Mayors who want to impose restrictions on their cities to prevent the spread of COVID but are prevented to do so by state action or state law

How is this playing out in Arizona? The Governor action prevents the Phoenix Mayor from closing 2 types of businesses: beauty salons & golf courses.

Civic Pulse | The Local Government Perspective on COVID-19

Governing | Will State Preemption Leave Cities More Vulnerable?

Local COVID TREND. Community Development Block Grant Economic Development Funds.

  • April 2, 2020

Who: College Station’s Community Development Block Grant Economic Development Funds

Goals of the funds:

  • prevent job losses for employees with families in the low-to-moderate household income
  •  job creation 
  • grants based on the number of employees an employer maintains

The Eagle | College Station City Council approves Economic Assistance Grant program

+1 State. 5 New Casinos + Sports Betting + Historical Racing

  • April 1, 2020

The state that has a gaming bill on its Governor’s desk: Virginia

The legislation: SB 36 (2020 | VA)

What does SB 36 entail?

  • 5 new casino licenses across 5 cities
  • sports betting on mobile apps & websites
    • 4-12 digital sports betting licenses
  • additional  historical horse racing machines at racetracks
  • professional sports teams like the Washington Redskins to pursue their own sports betting platforms, as long as their headquarters is in Virginia

What did SB 36 specifically exclude and what was the trade off?

  • excluded: colleges and universities from the new sports betting market
  • the trade: a lower tax rate of 15% in lieu of a 17.5% tax rate

Prince William Times | Lawmakers approve casinos and sports betting, prohibit bets on Virginia college teams

Local Cannabis Enforcement.

  • April 1, 2020

Where: Humbolt County California

What new enforcement mechanism has Humbolt County employed to tackle un-permitted & illegal cannabis facilities?

Satellite images

How did a rural county employ satellite enforcement?

Partnered with Planet, a San Francisco-based satellite imaging and analytics startup

How does satellite enforcement fit with the county’s ordinance? Humboldt County’s 2016 ordinance requires permitting officials to actively identify and to take action in regard to unpermitted cultivation sites.

How many citations were issued for unpermitted growing in 2017? less than 100

How many citations were issued after using satellite images? nearly 700 in the first year

Governing | How a County Is Managing a Marijuana Green Rush from Space

COVID Lege TREND. Insurance for Businesses Losses +1 more state

  • April 1, 2020

Where: Louisiana

What: HB 858 (2020 | LA)

How does HB 858 provide insurance coverage for businesses with COVID losses?

  • every policy that covers loss of business shall cover the coronavirus pandemic
  • Insurers shall indemnify insured policyholders who have policies
  • Applies to businesses with less than 100 employees in the state

COVID Lege TREND. Insurance for Business Losses.

  • April 1, 2020

Where:  New Jersey

What: A3844 (2020 | NJ)

How does it work?

  • require insurers to cover claims for business interruption caused by the coronavirus
  • if the companies:
    • have less than 100 employees
    • had such coverage in place on or before March 9, 2020
  • Insurers would apply to the Commissioner for Banking and Insurance for reimbursement
  • Reimbursement funds would be covered via funds collected from companies, other than providers of life and health insurance.

COVID Lege TREND. Unemployment Claims

  • April 1, 2020

Where: New Jersey

What: A3846 (2020 | NJ)

What does A3846 do?

  • Temporary Unemployment Claim process
  • $10 million to allow workers to file claims for wages lost due to COVID-19
  • $10 million to assist employers that pay wages to workers quarantine by a licensed health-care practitioner
  • fines for false claims

Funds will Move to Sustainable Investments Post-COVID-19

  • March 26, 2020

3 reasons sustainable investments/Environment, Social and Governance (ESG) investments will increase in the market and by state funds because of COVID-19:

  • Companies that meet these standards treat their employees well and would not furlough or lay off employees during a pandemic
  • Companies that meet these standards use metrics that foresee qualitative risk along with usual business risk 
  • Investments in these companies guards against any future potential disruptions & steers clear from companies which contribute to it economic disruptions

Economic Times | Don’t panic, it is time to reset your portfolio towards sustainability 

State Gambling Revenue and COVID-19

  • March 26, 2020

The gaming revenue that still thrives:

  •  virtual horse racing
  • KHL Russian Hockey League
  • Turkish and Mexican Soccer Leagues

Creative options for betting:

  • bets around Tom Brady and where his first snap could take place
  • bets on maximum temperatures in various cities

What are fantasy sports operators doing to adapt?

  • FanDuel:
    • games based on events such as the “Survivor” reality TV series
    • games on Democratic Party presidential debate
    • NBA Sim Sports
  • DraftKings:
    • free prize pool on Democratic party debate such as “which candidate will bring up the coronavirus first?”
    • games on“over/under how many tweets will Trump post during the debate?” 
    • free-to-play pools for TV shows, such as Top Chef, Jeopardy, and Curb Your Enthusiasm
    • paid pools like Aussie Rules Football and Australian Rugby

CNBC | In the coronavirus sports void, these are the desperate bets gamblers are making

Want to know what states are doing to taxes in response to COVID-19?

  • March 26, 2020

March 25, 2020

  • Income tax filing extensions: AK, OK, VA
  • New revenue forecasts: CA, IL
  • Further session postponements: CT, MI
  • Colorado: Supreme Court to determine whether legislative session can extend beyond May 6
  • New Hampshire: Expanded UI benefits eligibility
  • Oregon: Announced Corporate Activity Tax (CAT) payments remain due April 30
  • Ohio has passed legislation to expand unemployment compensation eligibility and move income tax filing deadline to July 15

March 24, 2020

  • Income tax filing extensions: AZ, CO, DE, GA, HI, ID, IA, MN, MO, MT, PA, RI, VT
  • Alaska: Senate passed $4.5 billion budget, rejected by House, headed to conference
  • Connecticut: Extensions for income-related business taxes as well
  • Arizona: Legislature passed scaled-down budget; governor expected to sign
  • Idaho: Extended deadline for property tax relief applications
  • Iowa: Extended deadlines for a wide range of taxes
  • Massachusetts: Waiving penalties and extending deadlines for range of taxes
  • Missouri: House adoption of supplemental budget package with COVID-19 relief
  • New York: Sales tax payment deadline extension offered
  • Tennessee: Relief for those affected by tornadoes is not applicable more broadly
  • Vermont: Waiver of business penalties and interest plus income tax filing extension

March 23 Updates:

  • New budget and COVID-19 relief details: AK, AZ, FL, ID, KS, SC
  • More states with extended income tax filing and payment deadlines: IA, MD, NE, NY, ND, WI, DC
  • Early adjournments in Idaho and Kansas, with new postponements in Illinois, Oklahoma, and South Carolina
  • Ohio: Government hiring freeze and agency cut order

March 20 Updates:

  • Income tax filing and payment deadline postponements: AL, CA, CT, IN, IA, KS, NM, NC, OR, SC, UT
  • Income tax payment deadline postponements: MD, OK, VA
  • Sales tax remittance extensions (details vary): AL, IL, LA, MN
  • Delaware: No-interest loans for hospitality industry; expanded UI benefits
  • Kentucky: Legislature in recess after adopting budget
  • Michigan: Property tax foreclosure deadline extended
  • Montana: Added additional details about state’s fiscal condition
  • Tennessee: Session suspended after legislators adopt scaled-back budget

March 19 Updates:

  • Alaska: House rejects $360 million supplemental budget with $23.5 million in coronavirus response funding
  • Delaware: Session suspended indefinitely, after initially only being postponed to March 24
  • Georgia: Estimates suggest a deficit of more than $1 billion by the close of the fiscal year

Tax Foundation | Tracking State Legislative Responses To COVID-19

3 reasons TX Attorney General State Offices will remain open

  • March 26, 2020

In a letter dated March 25, 2020 Texas Attorney General explains 3 reasons why Texas Governor Abbott’s Covid-19 Executive Order keeps state offices open:

  • State offices or elected officials and regulatory agencies are critical infrastructure that shall remain open
  • The Governor’s order preempts local action by any and all local officials
  • Local governments cannot enact laws that are inconsistent with state laws

Who gets the revenue from Prison Phone Calls? Just ask the Texas Attorney General

  • March 19, 2020

What Attorney General Opinion are we talking about? KP-0295 (2020)

What telephone revenue are we talking about because every tv show and movie I see shows illicit mobile phones under every pillow? revenue generated from inmates’ use of a PIN debit system to pay for phone time

What entity gets this PIN debit system revenue? general fund of the county, and not the commissary if the revenue isn’t part of a purchase from the commissary that has the funds passing through a facility’s commissary account 

States Look for More Enforcement over Financial Industry

  • March 18, 2020

The states: California and New York

What enforcement powers do the states want over the financial industry?

  • NEW YORK:
    • larger financial penalties
    • expanded ability to investigate consumer fraud
    • expanded ability to investigate securities fraud
    • expanded oversight over companies offering investment advice
  • CALIFORNIA
    • increase state’s regulatory agency with a budget addition of $19.3 million & add 90 positions
    • protect vulnerable Californians from predatory businesses
    • provide finance and investment companies with the clarity they need to innovate

Why are the states acting? less enforcement by the federal government over consumer fraud and securities fraud

Wall Street Journal | New York, California Want More Power Over the Financial Sector

+1 State Regulating Marijuana

  • March 18, 2020

Where: Virginia

What: HB 972 (2020 | VA)

How is Virginia regulating marijuana?

  • by decriminalizing possession
  • possession will be a $25 civil fine

Policy goals from removing marijuana from criminal records:

  • Does not impact educational opportunities
  • Does not impact employment opportunities

What changed minds in Virginia? Public Opinion polls that showed changing opinions on marijuana legalization

Jurist | Virginia legislature passes marijuana decriminalization bill

Business TREND. What are businesses impacted by COVID19 asking for from their state and local governments?

  • March 18, 2020

  • Texas: Bars and restaurants are asking that upcoming collection of mixed-beverage and sales taxes be to cancelled or delayed
  • City of Austin: hospitality workers are asking the Mayor to require landlords to charge “at cost” residential rents for service industry employees 
  • New York: Grant extensions or suspensions on tax payments & consider other potentially business-saving measures
  • New York City: enact rent subsidies, cap food delivery service fees, and consider other potentially business-saving measures

Eater | Petition Urges Cancellation of Business Taxes to Lessen COVID-19 Impact on Texas Bars

Economist Ray Perryman on COVID 19 & the Texas Economy

  • March 18, 2020

What is Economist Ray Perryman saying about COVID 19 and the Texas Economy:

  • Uncertainty. difficult to determine the ultimate fallout for the economy
  • Recession Avoidable. ” Texas can avoid a recession as long as the numbers of coronavirus cases do not explode exponentially and begin to wane soon”
  • Fast Recovery. expects spending to recover fairly quickly after there is more clarity concerning coronavirus
  • Markets Overreact. Markets are uncomfortable when there isn’t information needed to make informed decisions

Tyler Morning Telegraph | Economist Ray Perryman predicts notable effects on Texas economy due to coronavirus

Lege TREND. Tax Break for Cannabis Growers

  • March 12, 2020

Where: California

What’s the legislation? AB 1948 (2020 | CA)

The tax cuts:

  • limited to 3 years
  • suspend the cultivation tax
  • reduce the excise tax from 15% to 11%

Why is the tax cut necessary?

  • to support small farmers struggling to break even
  • major players in cannabis, like Flow Kana, are struggling under California’s current cannabis tax structure

What’s the economic issue at play? state and local taxes are considered a contributor to the growing divide between licensed & unlicensed cannabis markets

Sacramento Bee | ‘A LIFELINE FOR THE CANNABIS INDUSTRY’

Business TREND. Business Fund to Prop up Local Business During Coronavirus

  • March 12, 2020

Where: Seattle, Washington

What: Amazon has created a $5 million fund to support local businesses impacted by the coronavirus precautions

Which businesses are they looking to help? bars, restaurants, and food trucks

Why does Amazon want to help these businesses? because the company issued a decree for employees to work from home which directly impacts revenue to bars, restaurants and food trucks

Recode | Amazon will spend $5 million to prop up Seattle businesses harmed by coronavirus precautions

More Local Preemption TRENDS. Sunscreen Bans. Local Drug and Cosmetic regulations.

  • March 12, 2020

Where: Florida

What? Florida Legislature passed a bill to block Key West and any other local governments from imposing bans on certain types of sunscreen.

The bill: SB 172 (2020 | FL)

Does the bill go further than that? It will prohibit local governments from regulating drugs and cosmetics sold over the counter.

Why did local governments want to regulate drugs and cosmetics? Concerns about water, sea water and reef contamination from certain chemicals

News 4 JAX | Florida Legislature rejects local sunscreen bans

Lege Trend. Anatomy of a No Corporate Incentives Bill.

  • March 12, 2020

Where: Utah

What: HB 270 (2020 | UT)

Supporter Coalition: multi-state, bipartisan effort – the Coalition to Phase out Corporate Tax Giveaways

Why did this coalition begin? The bidding over Amazon HQ2

KUER | Utah Bill Aims To Prevent Corporate Tax Incentive Biddings Wars

New Legislative Group: Coalition to Phase Out Corporate Tax Giveaways

  • March 12, 2020

How many state legislatures have had legislation introduced to cease incentives? 13 in 2020

Have the bills moved? Utah has passed the Utah House

What does Coalition to Phase Out Corporate Tax Giveaways want in the legislation?

  • bipartisan
  • multi state compact
  • cessation of corporate incentives

Are there exceptions in the legislation? Yes

  •  local governments may offer their own tax breaks
  •  allows states to offer incentives to in state companies

Why stop corporate incentives?

  • State incentives results in states cannibalizing each other
  • Studies show incentives are ineffective at growing companies and creating more jobs

Bisnow | A State Lawmaker Group Against Relocation Incentives Is Gaining Steam. So Are The Incentives.

Business TREND. Ride Share Meet Staffing Agencies

  • March 12, 2020

Who: Uber Works

Where: Just entered the market in Dallas

What does UberWorks do? Connects Dallas-Fort Worth workers with businesses to fill shifts with an expedited onboarding process & rapid payment for the worker.

What type of temporary jobs will it seek to staff?

  • “general labor opportunities”
  • intro-level jobs that don’t require up-front training
  •  event work
  • hospitality industry
  • light industrial jobs

What information will potential temp workers provide?

  • W-2 forms
  • employment materials
  • undergo a background check

Dallas Morning News via Governing | Can Filling a Shift Be Just as Easy as Ordering an Uber?

What do I need to know about Colorado’s Repeal of its Taxpayer Bill Of Rights?

  • March 5, 2020

  1. It is not happening.
  2. The new schtick is Vision 2020, which is a tax overhaul
  3. The reforms focus on lowering the current 4.63% tax rate for households making less than $250,000 a year
  4. Above $250,000/year will be taxed at a higher rate of 8.9%
  5. 95% of Colorado households will get a tax cut

Vision 2020 Coalition

Colorado Sun | TABOR repeal is off the table for 2020. Now it’s Initiative 271, a $2 billion tax hike targeting the wealthy

What happens when state law requires companies to have women on their boards?

  • March 5, 2020

What was the legislation that required women on boards of companies in California? SB 826 of 2018

What does the data say?

  • 653 companies filed disclosure statements with the California Secretary of State
  • 625 of those companies are impacted by SB 826
  • 282 of those companies have at least woman director on their boards

See the 2020 list of corporations with women directors on their boards.

California Secretary of State | Women on Boards

What happens when a city dedicates excess revenue to Pensions.

  • March 5, 2020

The city: Springfield Illinois

What revenue is dedicated to paying down pension liabilities? city’s corporate fund balance was above 16% are dedicated to fire & police pensions

What did City Council do in response? In response to the need for budget flexibility after coal-fired power plants closed, city council tried to repeal the pension fund dedication.

The mayor’s response: veto of City Council action to either repeal or up the threshold to funds above 20%

State Journal Register | Langfelder issues rare veto of pension ordinance

TX A.G. Opinion Request: TRS & Real Property Investments

  • March 4, 2020

Who requested the opinion? Senator Whitmire

What question will the Attorney General answer?

  • Are any investments in or ownership of real estate either directly or indirectly by the Teacher Retirement System of Texas a violation of the Texas Constitution or Texas Government Code?

  • If the investments are in violation of the Texas Constitution and/or state statute, what is the remedy?

What does the request point to contrary to real estate investments?

  • the TX Constitution refers only to investments in securities
  • Tex. Gov’t Code, Sec, 825.30l(a) refers to investment in certain partnerships or investment contracts

RQ-0334-KP

Lege TREND. Sales tax on Facilitators (Uber Eats, GrubHub DoorDash, et.al.)

  • February 27, 2020

Where: Tennessee

What does the legislation look like? SB 2182 (2020 | TN )

How would the tax work? It would require the transaction facilitator to charge the sales tax and remit the sales tax

Estimated additional tax revenue: $84 million 

40 states apply sales taxes to marketplace facilitators.

Washington Examiner | Tennessee lawmakers move to tax Grubhub, Uber Eats and similar services

1st Month Cannabis Revenue in Illinois

  • February 27, 2020

For the 1st month of legal marijuana sales in Illinois:

Total sales: $39.2 million

Total tax revenue: $10.5 million

  • $7,332,058 in cannabis taxes
  • $3,147,928.29 in sales taxes ( 7% tax on the sales of cannabis)

Estimated Fiscal year 2021 tax revenue: $127 million

CBS Chicago | Legal Marijuana Sales Created $10.5 Million In Illinois Tax Revenue In January

Chicago Tribune | Recreational marijuana sales in Illinois generated more than $10 million in tax revenue in January

Lege TREND. Allow Counties to Opt OUT of State Services.

  • February 27, 2020

Where: Michigan

What does this legislation look like? HB 5550 (2020 | MI)

Goal: Prevent County residents from paying for services they would not receive

How is the opt out triggered?

  • County Commission resolution
  • County Executive Action Presented to the County Commission
  • An election in the County

MLive via Governing | New Michigan Bill Lets Counties Opt Out Instead of Paying

3 Reasons: No ROI on Tax Incentives

  • February 27, 2020

New Study, Evaluating State and Local Business Tax Incentives, forthcoming in Journal of Economic Perspectives.

  • there’s generally no indirect economic benefit from tax incentives
  • there is no significant boost to the broader local economy from tax incentives
  • companies that would have created the jobs anyway

Possible solution:

  • Offer tax rebates instead when goals are met, e.g. Utah

Governing | Tax Incentives: The Losing Gamble States and Cities Keep Making

Transportation Utility Fee

  • February 27, 2020

Where: Utah

What is a Transportation Utility Fee: A method by which local governments fund local transportation projects

What does Utah’s League of Cities and Towns say?  fees are necessary to fund roads that all residents drive on and benefit from

Daily Herald | Utah County cities ponder future of transportation utility fees in light of judge’s ruling

Economic Development Innovation. 5 Cities. 5 States. Non Profits. Collaboration.

  • February 27, 2020

The cities:

  •  Aurora, Illinois
  • Irving, Texas
  • Kansas City, Missouri
  • Riverside, California
  • Shoreline, Washington

The nonprofit: Third City Coalition, dedicated to improving civic engagement in Stockton, California

Last year’s effort included 11 cities and resulted in projects to design roadways compatible with autonomous vehicles.

StateScoop | Five cities team up to uncover economic-development innovations

States Expanding Whistleblower Laws to Tax Whistleblowers

  • February 20, 2020

The jurisdictions:

How does this work? Adding taxes to the state’s False Claims Act

What does this mean? More private enforcement of tax violations

Opponents: Business Interest groups

Bloomberg Tax | California, Michigan, D.C. Eye Revenue From Tax Whistleblowers

By the Numbers. 6 Years of Cannabis Tax Revenue in Colorado

  • February 20, 2020

  • $7.79 Billion of sales over 6 years
  • $1.21 Billion in tax revenue over 6 years
  • 2019 record setting cannabis sales of $1.75 Billion
  • 13% increase in sales from 2018 to 2019
  • $302 million record high tax collections in 2019
  • Top month: August $173 Million in sales

Denver Post | Colorado marijuana sales hit a record $1.75 billion in 2019

Special District Reform. When a water district charges for water not used.

  • February 20, 2020

Where:  North Texas Municipal Water District

What’s happening with North Texas Municipal Water District?

  • Allegations of over-collecting $275 million from residents for water and services not used
  • Claims that non-resident cities get a lower rate from the district than member cities
  • The district’s budget rose 57% in 5 years

TPPF | North Texas Controversy Reminds that Special Districts Need Reform

State Adopts Sustainable Investing Policy

  • February 20, 2020

Where: Illinois

What is Illinois’ state sustainable investment plan called? Raise the Bar

What are Illinois esg/sustainable investment policies?

  • support active ownership that involves more than short term profit
  • its not about values, but about value
    • long term sustainable products are valuable
    • diversity in leadership increases value
      • diverse backgrounds mean less groupthinking
      • and fewer missed opportunities

Morning Star | Q&A: Illinois Raises the Bar on Sustainable Investing

Anatomy of a Sales tax Increase Shrinking Consumption

  • February 20, 2020

What happened when Japan increased its sales tax? Consumption declined

The numbers:

  • 2% increase in sales tax nationally on Oct 1st
  • The economy shrunk by 6.3% in the October-December quarter
  • The forecast was a 3.9% rate of shrinking
  • largest economic contraction since 2014, the last time the national sales tax increased

Wall Street Journal | Japan’s Economy Shrinks 6.3% as Sales-Tax Increase Cools Consumption

-1 State Cannabis Legislation in 2020

  • February 20, 2020

The State: Florida

What specific cannabis legislation is not moving in Florida in 2020?

What bills are moving? Bills to correct oversights in the state Hemp Program

Tampa Bay Times | Florida Legislature not moving to address marijuana legislation this session

What happens when a pension funding bill includes caps for contributions? More Private Contractors

  • February 13, 2020

If you’re in Kentucky, the caps last 2 years and then things change.

What’s the new proposal to cap the pension contribution rates of universities and some agencies? A cap of 67% on contributions rates, up from the previous cap of 49%

What happened when the caps were in place in state government?

  • State employees were laid off
  • More private contractors were hired
  • Hiring new employees has been impossible

What is the replacement funding mechanism for state agencies and universities? As opposed to a percentage of payroll, contributions will be calculated based on their determined share of the pension fund’s liability

HB 171 (2020 | KY)

Lexington Herald Leader | House bill would change how Kentucky’s pension debt is paid

Appellate Court Finds Fantasy Sports Violates Gambling Prohibition

  • February 13, 2020

Where: New York

What court: New York Supreme Court’s Appellate Division

How did the court get to fantasy sports laws violate the state Constitution prohibition on gambling? It found fantasy sports a game of chance

How is fantasy sports a game of chance? fantasy sports involves chance in that variables such as player injury, illness, bad weather or poor officiating impact fantasy sports

Harris Beach PLLC | New York State Appeals Court Finds Daily Fantasy Sports Law Unconstitutional

New Tax Cap Horror Story

  • February 13, 2020

What: A billionaire’s $238 million condo in Manhattan is taxed at 0.22%, the same rate as the lowest, property tax rate in the country, Laredo, Texas

How did this happen: a tax cap

What has been the response: City Commissioners are proposing to eliminate the caps + have all homes are assessed and taxed at full-market value

Habitat | Billionaire’s Condo Taxed at Rate of Laredo, Texas

UPDATE. California Bans State Travel to Texas. Texas Sues.

  • February 13, 2020

Why is Texas suing? California bans state travel to 11 states that restrict or limit LGBTQ persons in ways others are not restricted or limited

What 3 issues does Texas raise against the travel ban equated?

  • economic sanctions that deprive Texas of tax revenue from the travel
  • violates federal laws on interstate commerce
  • discriminates against Texas business owners

Politico | Texas sues California over law banning state-sponsored travel

Attorney General Becerra: Alabama, Kentucky, South Dakota and Texas Added to List of Restricted State Travel

Previously on InfoHive:

+1 New State Travel Ban

Where: California

How many states are on California’s travel ban? 11, including Texas, Oklahoma, North Carolina, Mississippi and Kentucky

What’s the newest travel ban? Iowa

What did Iowa do to earn a travel ban? removed gender protections under Medicaid

Sacramento Bee | California adds an 11th state to its travel ban. No taxpayer-funded trips to Iowa

Texas Comptroller: Sales Tax Loophole.

  • February 6, 2020

An Opinion piece by Texas Comptroller points out this loophole in Texas Tax law:

“some cities and businesses have cut deals to source local sales tax on sales made over the internet solely to particular cities”

What impact does this loophole have:

  • companies are rebated tax dollars
  • local sales tax dollars are leaving communities

Where are these sales tax agreements found: in economic development agreements

The regulatory fix: Changes to “Rule 3.334 to clarify that local sales tax is tied to the place of business from which internet orders are fulfilled or the location to which items are shipped or delivered.”

Its a $275.8 million problem: In January 2020 $763.8 million in monthly sales tax revenue was distributed to Texas local governments. 1,200-plus cities received $488.7 million. That’s a discrepancy of $275.8 million

Dallas Morning News | Opinion by Texas Comptroller Hegar | How some Texas cities and retailers are using a tax loophole to snatch sales tax revenue from other communities

New Report. Economic Development & Distilleries. 2 Regulatory Goals.

  • February 6, 2020

The report authors:  UTSA Institute for Economic Development 

The report release date: February 2020

The 2 regulatory goals distillers want:

  • raise their production limits
  • tax break on their sales
  • + permanent extension of the federal Craft Beverage Modernization and Tax Reform Act

The economic benefits of distilleries in Texas:

  • bolster the agriculture community
  • 162 distilleries in 2019, up from 127 in 2017

UTSA Today | UTSA researcher brews up business plan for Texas distilleries

TREND. Economic Development Meet Sustainability.

  • February 6, 2020

The property development transaction types: Commercial Property Assessed Clean Energy (C-PACE) transactions

An example:  Petros PACE Finance, LLC , an Austin Texas based finance group + Ross Group, a Tulsa, Oklahoma developer

What sustainability will be included in the economic development project? efficient heating, cooling, plumbing and lighting systems, along with building envelope improvement on historic property including the 1920s Tulsa Club

The economic benefits:

  • alternative to mezzanine debt and equity
  • lowers overall capital costs
  • allows investment in higher efficiency building designs

Tulsa World | Austin, Texas, finance company backs two Tulsa hotels for energy-saving measures

Coalition supporting Gig Companies on Labor Bills.

  • February 6, 2020

What is an example of a gig economy labor bill? Like California’s AB 5 that classifies gig economy workers as employees and not independent contractors

What allies have started backing the gig economy tech companies in fighting legislation?

  • MADD
  • law enforcement
  • Flexible Work for New York
  • bars
  • breweries
  • Chambers of Commerce

NPR | Uber, Lyft, Postmates Refuse To Comply With California Gig Economy Law

Flexwork4ny.com

City & State New York | MADD, Albany sheriff, support keeping gig workers’ independent contractor status

By the Numbers. Tax Revenue from Sports Betting in the South

  • February 6, 2020

Where: Mississippi

How long has sports betting been legal in MS? 18 months

What has revenue looked like?

  • $59.6 million in tax revenue
  • $526.3 million wagered 
  • 8% to the state
    • In 2019, that was $3.56 million in tax revenue
  • 4% to local governments where casinos are located 
    • In 2019, that was $1.78 million

The 2017-2018 legislation: House Bill 967 (2017 | MS)

Mississippi Today | Mississippi’s gamble pays off; Supreme Court strikes down sports betting ban
The Dispatch | Going all in: 18 months after legalization, sports betting brings big bucks to Mississippi

Funding Local Pensions with Marijuana Revenue

  • February 6, 2020

Where is this unfolding? South Beloit, Ill

What does the mayor look to fund with marijuana revenue?

  • firefighter and police pensions
  • pave some cracked streets

Estimated revenue for the little town? $1 million annually

Wall Street Journal | Is Your City’s Pension Fund a Little Short? Marijuana Might Help

Marijuana State Tourism Revenue

  • January 30, 2020

Where: Illinois

Why is a Governor talking about state revenue from marijuana tourism? Illinois recently legalized cannabis while neighboring states, Indiana, Iowa, Missouri, & Wisconsin have not

When did the Governor say this? In the 2020 State of the State

What else did he say about legalization?

  • 63,000 new jobs
  • new opportunities for entrepreneurs
  • new opportunities for those from communities that have been left behind
  • a second chance to hundreds of thousands of people who had a low level cannabis conviction or arrest on their record

Chicago Business | Pritzker’s State of the State address: Full text

+1 State Pension System Divestment from Coal

  • January 30, 2020

Last statewide pension system looking to divest from coal: New York State Common Retirement Fund

Who is pushing divestment?   lawmakers and advocates 

The legislation:  Fossil Fuel Divestment Act (S.5873/A.8011-A)

Background: the Pension system CIO opposed it in 2019. The New York Comptroller supports it.

San Francisco Chronicle | New York pension to coal firms: Evolve or we’ll divest

12 States with Elected Insurance Commissioners?

  • January 30, 2020

Florida may become the 12th state to make its Insurance Commissioner a statewide elected official

The legislation: SJR 1460 (2020 | FL)

Clyde & Co | Proposed Legislation In Florida Includes Electing Insurance Commissioner And Consumer Data Privacy

+1 Red State Tries a Consumption Tax

  • January 30, 2020

Where: Nebraska

What is the tax proposal? LR300CA (2020 | NE)

  • Eliminate the state’s property, sales and income tax system
  • Adopt a constitutional amendment with a single-rate consumption tax

What would the consumption tax apply to? new goods & services

Who is backing this? Republicans who want to think “outside the box” to make the state the #1 state for business

How many other states are considering consumptions taxes in 2020? 9 including Alabama

Lincoln Journal Star | Surprise plan would replace state tax system with consumption tax