Topics
Finance & Revenue
Finance & Revenue
COVID What a Local Economic Response Task Force Looks Like
Where: San Angelo Texas
What partnership created the COVID economic response task force?
- 6 San Angelo economic development organizations:
- City of San Angelo Development Corporation
- ASU Small Business Development Center
- Concho Valley Workforce Development Board
- Tom Green County
- Concho Valley Council of Governments
- San Angelo Chamber of Commerce
Goal of the Economic Response and Recovery Task Force : sharing information on the converging economic situations and creation of a collaborative set of solutions
Results:
- Launched collectively, the COVID-19 Resource Hub link on at www.SanAngelo.org for real-time, updated resources for small businesses and individuals
- Coordinated immediate information-sharing about layoffs, companies, and independent business owners
Go San Angelo | Economic Response and Recovery Task Force formed in San Angelo due to COVID-19
Anatomy of an Economic Development Deal for Tesla Truck Factory
Who is offering the economic development deal? Joplin, Missouri
Package deal total: $1 Billion
What does the $1 Billion deal include:
- 50% discount on 1,042 acres
- 100% tax abatement for 12 years
- Offering its historic science background including:
- 150 battery engineers
- 500+ licensed engineers within a 60-mile radius
- home to programs that have helped power Apollo missions, lunar landings, and ballistic missiles
- median hourly earning is $27.86
- Less than site competitors Nashville ($33.18) & Austin ($37.50)
Future Car | Missouri Attempts to Court Tesla With $1 Billion Package for Cybertruck Factory
COVID Legislation TREND: Cashless. Touch limited Transactions.
Where: Congress.
What: House Financial Services Committee’s Task Force on Financial Technology proposed legislation that any swipe, dip or tap transaction at a merchant point-of-sale terminal would not trigger a signature
Who: Bank of International Settlements
What did the Bank of International Settlements do? fueled concerns that the coronavirus could be transmitted by handling cash
Financial Services Committee’s top Republican, Rep. Patrick T. McHenry of North Carolina said, ““We need to take a 21st century approach to combating the impacts of a public health crisis in our modern world.”
Countries making move to contactless payments: Austria, Germany, Hungary, Ireland, the Netherlands, the United Kingdom
CQ Roll Call via Governing | The Future of Cash Transactions in Question Amid COVID-19
COVID Fund Use = Rural Broadband
Where: Alabama
What: The Legislature proposes using $800 Million of $1.7 Billion COVID funds for a broadband fund
Can a State use federal COVID funds for broadband? Unclear
Montgomery Advertiser via Governing | Alabama Proposes $800M of Coronavirus Fund for Broadband
27 States Begin Re-Opening
Alabama
Alaska
Colorado
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Maine
Michigan
Mississippi
Montana
Minnesota
Missouri
Nebraska
New Hampshire
North Dakota
Oklahoma
Kansas
South Carolina
South Dakota
Texas
Tennessee
Utah
West Virginia
Wyoming
Governing | Reopening the Economy Under COVID-19: States Plot a Way Back
New York Times | See Which States Are Reopening and Which Are Still Shut Down
Texas Attorney General Opinion. County Court Public Input Limits.
In KP-0300 (2020), Texas Attorney General explains that public input can be limited like this:
- one public comment period for the entire agenda at the beginning of an open meeting, rather than public comment per agenda item
- comment time may be limited, so long as the cap is reasonable
+1 State Denies Open Records During COVID
Where: Texas
What public information requests are being denied due to COVID? information concerning COVID infections at the 13 state supported living facilities
What exception to disclosure is offered? The federal Health Insurance Portability and Accountability Act
State Lege Sues State Governor over COVID restrictions.
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.
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
COVID + Open Records Request Denials.
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
- Oregon pandemic influenza plan available on a state website
- A Kentucky school district shared its pandemic response plan
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
Industry + Regulatory COVID Changes: Restaurant Industry
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
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
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
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-19 | HF 4531 | Gazelka, P. | Providing $330 million for COVID-19 response efforts; creating the COVID-19 Minnesota fund. (Ch. 71) |
| COVID-19 | HF 4537 | Howe, J. | Providing a presumption for COVID-19 workers’ compensation claims for certain employees. (Ch. 72) |
| COVID-19 | SF 3813 | Relph, J. | Transferring funds for public health response planning and preparation for the COVID-19 outbreak. (Ch. 66) |
| COVID-19 | SF 4334 | Benson, 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
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
Anatomy of state costs for COVID
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
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
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
Numbers: How COVID Hit the Texas Wine Industry
- $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
COVID Fines for not social distancing
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.
Local TREND. How COVID Exposes Flaws of State Preemption of Local Action
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.
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
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
Local Cannabis Enforcement.
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
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.
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
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
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
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 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
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
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
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
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?
- 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
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
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
Business TREND. Business Fund to Prop up Local Business During Coronavirus
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
More Local Preemption TRENDS. Sunscreen Bans. Local Drug and Cosmetic regulations.
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.
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
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
Business TREND. Ride Share Meet Staffing Agencies
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?
- It is not happening.
- The new schtick is Vision 2020, which is a tax overhaul
- The reforms focus on lowering the current 4.63% tax rate for households making less than $250,000 a year
- Above $250,000/year will be taxed at a higher rate of 8.9%
- 95% of Colorado households will get a tax cut
What happens when state law requires companies to have women on their boards?
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.
What happens when a city dedicates excess revenue to Pensions.
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
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
Lege TREND. Sales tax on Facilitators (Uber Eats, GrubHub DoorDash, et.al.)
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
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
Lege TREND. Allow Counties to Opt OUT of State Services.
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
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
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
Economic Development Innovation. 5 Cities. 5 States. Non Profits. Collaboration.
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
The jurisdictions:
- Michigan HB 4875 (2020 | MI)
- D.C. Bill 23-35 (2020 | D.C.)
- California AB 1270 (2020 | CA)
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
- $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.
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
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
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
The State: Florida
What specific cannabis legislation is not moving in Florida in 2020?
- Reduction of medical marijuana card fee for veterans SB 98 (2020 | FL)
- Eliminate vertically integrated medical marijuana model HB 149 (2020 | FL)
- Permit marijuana retail centers SB 212 (2020 | FL)
- Adding Sickle Cell to Medical Marijuana Laws SB 1274 (2020 | FL)
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
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
Lexington Herald Leader | House bill would change how Kentucky’s pension debt is paid
Appellate Court Finds Fantasy Sports Violates Gambling Prohibition
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
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.
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
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.
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
New Report. Economic Development & Distilleries. 2 Regulatory Goals.
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.
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.
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
By the Numbers. Tax Revenue from Sports Betting in the South
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
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
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
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?
Florida may become the 12th state to make its Insurance Commissioner a statewide elected official
The legislation: SJR 1460 (2020 | FL)
+1 Red State Tries a Consumption Tax
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
Lege TREND. Gas Tax Increases Back in Full Force in 2020
Where: Wyoming
What: HB 63 (2020 | WY)
How will HB 63 in Wyoming change its current gas tax?
- Increase the tax to 27 cents from 24 cents
Are the revenues dedicated? Yes, constitutionally to costs of construction, maintenance and traffic enforcement of Wyoming Highways, roads, and streets.
KGAB | Bill To Increase Wyoming Fuel Tax To Be Proposed In Legislature
3 Arguments that Sports Betting Increases State CyberSecurity Risks
- Cyber vulnerabilities increases exponentially during major sporting events like the Super Bowl
- Online Gaming has to be treated, legislatively & regulatory, separately from traditional gaming because of the data
- As the industry grows, so do cyber threats
Legal Gambling & the Law | Cyber Security Threats May Increase Due To Sports Betting Expansion
Governments + Cryptocurrencies
Current list of government central banks considering implementing a cryptocurrency:
- Bank of England
- Canadian central bank
- Japanese central bank
- Swedish central bank
- Swiss central banks
New Caucus. Gaming Caucus.
Where: Congress
Who: Republicans are establishing the Congressional Gaming Caucus
Why: “the gaming industry helps create jobs and drives economic growth in our communities.“
What issues will it focus on:
- Anti-money laundering compliance
- Responsible gaming
- State regulation of gaming, including sports betting
Play Pennsylvania | PA CONGRESSMAN RESCHENTHALER REVIVES CONGRESSIONAL GAMING CAUCUS
Why is Texas 4th from the bottom on corporate taxes?
- gross receipts tax in Texas is economically problematic
- impose taxes on intangible personal property
- tax treatment of net operating losses
Talking Points from Republicans Supporting State Gaming Laws.
- “protect Michigan consumers”
- “modernize the state’s gaming laws”
- constituents “will no longer have to settle for traveling to other states or playing through risky, offshore operators.”
- “Our students and schools will have more revenue because of these reforms — without raising general taxes”
- “competitive tax rate and regulatory framework “
- “will improve essential public services without asking Michigan taxpayers to pay more at the gas pump or grocery store.”
2 Ways Colorado Changing Marijuana Regulation
- Billboards
- new rules will permit billboards with distance requirements
- distance requirements call for 500-feet billboard buffer from schools, places of worship, and public playgrounds
- Advertising
- rules will begin to parallel alcohol regulations
12 Days of Cannabis Revenue in Illinois.
Total tax revenue in 12 days from cannabis sales: $19.7 million
Total cannabis transactions in 12 days: 495,385 transactions
How is the tax revenue dedicated?
- 25% of cannabis sales tax revenues will support the Restore, Reinvest and Renew (R3) program
- to fund economic disinvestment, violence & historical overuse of the criminal justice system
KHQA | Illinois generates nearly $20M from adult-use cannabis sales in first 12 days of new year
Economic Development Negotiations. Cover Employee Salaries?
Which economic development deal included an offer for a government to pay salaries? Amazon and NYC negotiations
Which salaries were to be covered by the economic development deal? 25% of some graduates’ 1st year salaries
What was the government goal of paying salaries? To help Amazon reach diversity goals
Wall Street Journal | New York Dangled Extra Incentives in Initial Bid to Lure Amazon HQ2
Top 15 Issues for Legislatures in 2020
- Abortion
- Climate
- infrastructure hardening
- Funding to mitigateclimate-related problems
- Criminal Justice Reform
- “ban the box” laws and policies that stop job application forms that ask for a yes or no answer about a prior criminal record
- Election Security
- stop the hackers
- Health Care
- rural hospital closures
- pharmaceutical costs/opioid crisis
- Highway Funding
- gas taxes. repeal of EV credits. how do we pay for underfunded road maintenance?
- Housing
- Pre-emption by states to limit what a city can do or dictate policy
- Immigration
- no federal action, means states are clamoring
- Net Neutrality
- 34 states have introduced net neutrality bills after Trump FCC repeal of net neutrality
- Pensions
- funding rations, funding ratios, funding ratios
- Pre-emption
- block local governments from having single-family zoning regulations in place
- Zoning regulations impact short term rentals and multifamily housing
- Quelling Recession Fears
- Whether to spend down state savings accounts
- Redistricting
- Bonjour, Census
- Vaping
- 200 municipalities have banned flavored e-cigarettes
- Workforce
- Minimum Wages
- Defining Gig Workers as Employees/Independent Contractors
3 New Gig Labor Legislative Efforts
What 3 jurisdictions could follow California’s footsteps to classify gig workers as employees and not independent contractors?
- New York
- Utilizing a coalition of labor experts including: unions, legal aid, and legal think tanks
- Assembly Bill 8343 (2019-2020 | NY)
- New Jersey
- Illinois
Is there a revenue connection? Yes, unemployment taxes paid to the state.
Politico | Coalition takes shape in New York to challenge gig economy’s business model
20 States Approve Sports Betting.
Which was the 20th state? Michigan
Did Michigan approve more than sports betting? yes, it also included online gaming and fantasy psorts
How was the legislative package organized?
- Sports Betting HB 4916 (2019 | MI)
- Online Gambling HB 4311 (2019 | MI)
- Fantasy Sports HB 4308 (2019 | MI)
13 states currently offer sports betting:
- Nevada, Delaware, New Jersey, Rhode Island, Pennsylvania, New York, West Virginia, Mississippi, Indiana, Iowa, Arkansas, New Mexico, and Oregon
7 states have enacted legislation: New Hampshire, North Carolina, Tennessee, Illinois, Montana, Colorado, the District of Columbia, and now Michigan.
The tax rates:
- 8.4% at tribal sports betting
- Detroit’s will be taxed at 11.75% due to the city’s mandatory 3.25% add-on tax on all forms of gambling
Casino.org | Michigan Becomes 20th State to Pass Sports Betting Regulations
TX Attorney General Opinion. Fees Yes. Taxes No. Local Dam Fees.
In Opinion KP-0283 fees may be collected by the Guadalupe-Blanco River Authority
What question is this opinion answering? Whether the Guadalupe-Blanco River Authority has authority to impose fees or to by election establish a taxing district to fund the replacement, operation, and maintenance of dams.
What justifies the River Authority’s fees?
- The enabling legislation for the River Authority
- Limits revenue to that revenue reasonably needed for regulation, otherwise courts will find the revenue to be from a tax
Can tax revenue be passed from a separate special district that can tax? With constraints, probably yes
- If the special district that taxed includes “safeguards in its contract to prevent concerns that the transfer amounts to an impermissible lending of credit”
- The special district cannot be created by the River Authority under its current statutes
Law 360 | Texas AG Says River Authority Is Allowed Dam Fees, Can’t Tax
Local TREND. Cities & States Funding College Savings Plans. Anatomy of the plan in Colorado.
What entity will control the state funded college plan? Colorado created a non profit, CollegeInvest
How much is the state investing per Colorado Child? $100
Is CollegeInvest in Colorado limited to 4 year colleges? No, funds can be applied to vocational training, community college, and graduate programs
Which kids are included in Colorado?
- kids born in Colorado
- proof of a Social Security number or tax ID number for both the baby + 1 of their parents or legal guardians
Who else is following suit?
- St. Paul, Minnesota
- Massachusetts
- Rhode Island
Education Dive | More cities and states are paying into children’s college savings plans
Legislative TREND. Tightening Tourism via Helicopter
What legislative body looks to limit helicopter tourism? Congress
What will the legislation do?
- impose strict regulations on commercial tour operations
- prohibit pilots from also serving as tour narrators
- Require that tour flights fly above the 1,500-foot altitude over actual ground at all times
- Noise limitations over residential areas
- Prohibit tour flights over military installations, national cemeteries, national wilderness areas, national parks, and national wildlife refuges
How much economic impact does helicopter tourism have in Hawaii?
Hawaii Helicopter Association estimates that air-tour operators annually contribute $150 million to the state’s economy
Congressman Case Moves to Impose Strict Regulations on Commercial Air Tour Operations
Washington Post | Police: All 7 killed in Hawaii tour helicopter crash
Lege TREND. Using Film tax Credit to Promote Women in Entertainment.
Where: New York
What: Assembly Bill 6683 (2019 | NY)
What does the Television Diversity Tax Credit Bill do?
- Allows for a $5million tax credit
- Qualifying projects can receive up to 30% of the qualifying salaries and fees paid
- for hiring minority or female TV writers or directors
- who work or reside in New York
- Tax credit caps:
- $150,000 in salaries or fees per person
- $50,000 for such fees or salaries for work done for a single episode of television
- Creates a study to demonstrate the underutilization of minority and women directors and screenwriters who will benefit from this tax credit
The Hill | Amy Schumer, Samantha Bee among 400 writers urging Cuomo to sign TV tax credit bill
Lege TREND. New Way for States to Limit City Revenue.
Where: Florida
What: Limit the permitted uses of revenue from municipal utilities to prevent utility revenue from being used in the general fund
Which taxes would cities then rely on the continue a revenue status quo?
- Raise property taxes
- Raise sales taxes
WUFT | Utilities Revenue Bill In Florida Legislature Threatens City Budgets Statewide
TRS New Executive Panel
Adieu to a single leader of Texas Teacher Retirement System. TRS will now be led by an executive committee including:
- CIO Jase Auby
- COO Sylvia Bell
- Chief of Staff and Chair of Internal Investment Committee Katy Hoffman
- Head of Private Markets Eric Lang
- Head of Public Markets Dale West
Pensions & Investments | Texas Teacher fund to be led by executive panel
Lege TREND. Fantasy Sports Advertising Limitations.
Which state is implementing new advertising rules on fantasy sports? New Jersey
When did New Jersey permit fantasy sports? 2017
What advertising limitations are placed on fantasy sports?
- No ads at sports venues used for elementary and high school sports activities
- Ads at college sports events are ok
Chicago Tribune | Rules governing fantasy sports operations go into effect
3 Reasons Supporting Statewide Ride Share Taxation
Who is offering the support for statewide ride share taxation? R Street institute
What arguments support statewide ride share taxation?
- Rides don’t start and stop at city limits which makes municipal taxes hard to collect & allocate
- Its complicated for companies to comply with multiple tax systems
- Statewide taxation “limit[s] the economic damage from any taxes that states allow”
Is there an exception to statewide taxation? Yes, taxes and fees levied by cities to address congestion
Streamlining Online State Services. Texas 2.0
What is the new project called? My Government My Way
How did the previous Texas online government services portal, Texas.gov, function?
- 260 million online transactions
- across 30 state agencies
- linked by 5 different portals
What is the ROI on the new platform?
- 6% increase in online drivers license transactions
Expand use of 529 Savings Accounts to Workforce Development
Where: Congress
The bill: Invest in Tomorrow’s Workforce Act H.R. 654 (116th Congress)
What would 529 savings pay for under this legislation? workforce training & credentialing programs
CBS 19 | Bill to let students use 529 accounts for training, credentialing programs
New Report. Climate Change Harming Pension Returns.
The report: California Public Employees’ Retirement System first climate change risk report
What did the report find? 20% of CALPERS investments negatively impacted by climate change
Why did CALPERS issue this report? Required by the California legislature in 2018
What 4 sectors are economically impacted?
- energy stocks (including utility holdings) 8% of CALPERS equity
- materials and building sector 6 % of CALPERS equity
- transportation 3% of CALPERS equity
- agriculture, food, and forestry 3% of CALPERS equity
Chief Investment Officer | One-Fifth of CalPERS Equity Portfolio Faces Climate Change Risk
Another State Adding Online Gaming
The state: Michigan
The key to passage of the legislation: holding school funding harmless so that any revenue hit to lottery funds from online gaming does not reduce school funding
The tax rates:
- 8.4% for sports betting
- 20-28% for internet poker and other games played online
Woodtv.com NBC 8 | Online gaming bills closer to passing in MI Legislature
+1 State Considering Gas Tax Indexing
Where: Virginia
What is Virginia’s current gas tax? 22 cents, the 12th lowest of any state
What are elected officials saying?
- Funding increases and sources should be shared among all types of transportation
- A tax increase should not effectively limit one type of transportation
- A miles traveled fee could be a better route for the state than a gas tax increase
WTOP | Virginia considers gas tax hike to cover growing transportation needs
New Cannabis Trade Association
Who: The Association for the Cannabinoid Industry
What are the association’s tenets?
- legal compliance
- quality control
- offering a a kitemark that will appear on products which meet its standards and assurances on product quality, efficacy and safety to build consumer trust
Local Government TREND. Dedicated Cannabis Taxes.
Where: Evanston, Illinois
What: Proposes to dedicate its tax on cannabis to create a reparations fund for its African American community
How will the dedicated fund operate?
- estimated annual revenue of $500,000 – $750,000
- Cap of $10 million over the next 10 years
- Workforce skills & home downpayment funds will be available to all of the city’s black residents
The Telegraph | US city to pay reparations to African-American community with tax on marijuana sales
Business TREND. A Venmo-like App for Cannabis
When cannabis companies can’t bank in traditional banks, the industry needs alternatives.
Who: Hypur, the company behind the Venmo like app
How it works:
- Customers enter a code at the dispensary to transfer funds from their checking account
Concerns about this mode of payment:
- Hypur charges 3% per transaction, higher than the 1-2% of credit cards
- No federal oversight
- Privacy concerns
Columbus Dispatch | Arizona company starts Venmo-like service to buy medical marijuana
Thank you for subscribing to our newsletter.
Great things are just around the corner!