Finance & Revenue
Even if Legislatures aren’t passing divestment bills concerning China, pension systems are cutting investment exposure to China. CalSTRS is limiting its exposure to investments in China.
Deal Street Asia | CalSTRS becomes latest pension to cut its China exposure
The Smart Surfaces Coalition is a bipartisan coalition of mayors and 40 partners representing health, business, justice and more. So what options are there to cool cities? reflective, porous and green surfaces, along with trees and solar photovoltaic panels; can cool the air & reduce mold and flooding.
Governing | We Need Cooler Cities. Here’s How to Build Them.
To counter abortion restrictions 4 states are offering tax breaks for expectant parents. Georgia defined dependent to include a fetus to qualify for its dependent personal exemption. Utah passed a similar law. While Missouri and Louisiana incentivize donations to crisis pregnancy centers.
The County of Miami Dade has hired the world’s first Chief Heat Officer. The CHO position was created in 2021 by Mayor Daniella Levine Cava in partnership with the Adrienne Arsht-Rockefeller Foundation Resilience Center. Miami is said to be the largest city affected by the extreme heat belt. The CHO also works to achieve the county’s goal of “achieving net zero emissions by 2050, envisioning a green economy driven by innovation.” Since Mami-Dade’s CHO was created, Phoenix and Los Angeles have also created Chief Heat Officer positions.
Governing | World’s First Chief Heat Officer Has Tips for Managing Risks of Extreme Heat
Thank you Harvard Law School Forum on Corporate Governance for breaking down the numbers on anti- esg legislation this year. 165 pieces of legislation in 37 states. 22 of these bills passed. That’s 13% for those keeping count.
On July 20th Ron DeSantis sent a letter to the director of the Florida State Board of Administration instructing them to “initiate a review to examine how AB InBev’s conduct has impacted and continues to impact the value of SBA’s AB InBev holdings.” AKA let’s divest from InBEv because “I no like.” Gov. DeSantis also added, “It appears to me that AB InBev may have breached legal duties owed to shareholders, and that shareholder action may be both appropriate and necessary.”
The Hill | DeSantis asks Florida officials to review AB InBev assets following Bud Light scandal
California sought to tax short term rentals to fund affordable housing projects. SB 584(2023 | CA) went no where. It was backed by construction unions in California and authored by a Democrat, but ran into this issue in the California House: wage and labor standards for projects. A good reminder that obstacles can pop up from unexpected places. Adapt and pivot.
California is considering a bill that would permit night markets, like are common in Asia, to thrive in the state. The goal is to cut red tape and ease the permitting process for regularly occurring outdoor markets. AB441 (2023 | CA) You may think, wow, you’re sending me to the wrong link, but in California legislators are limited to the number of bills they can file, so the author withdrew this bill and is gutting AB441 to become the night market bill.
CalMatters | California Legislature could boost night markets
A ballot measure in North Dakota will place an age limit on Congressional candidates from North Dakota. The magic age? 80. No candidate can be elected or appointed who could reach 81 by the end of their term.
AP | Proposed ballot measure seeks congressional age limit of 80 in North Dakota
Miami Dade forgot to renew its local gas tax this summer. The local gas tax cannot be renewed until January 1st, costing Miami Dade $18 million in local revenue. The takeaway: details matter.
Miami Herald via Governing | Miami-Dade Forgets to Renew Gas Tax, Loses Millions
19 states have created state retirement plans for private sector employees. The plans are free for participating employers and self-funded through retirement account fees. They say these plans boost state bottom lines and increase retirement security for their residents. Win-win.
Route Fifty | State retirement plans close savings gap and pad bottom lines
Illinois Governor has signed the state’s Drones as First Responders Act, HB 3902 (2023 | IL) . It will allow drones to be used at events that are outdoors, open to the public, and hosted by the state, a county, a municipality, a township, or a park district for real-time monitoring and threat detection during outdoor events. It also allows drones to be used for infrastructure inspections, public relations events such as taking a photo of a local organization, and to assist with public safety response, such as locating victims or fleeing suspects.
Route Fifty | Drones enlisted for real-time monitoring of public events
Massachusetts has created the Massachusetts Community Climate Bank, a green bank dedicated to funding affordable housing. Funded with $50 million in state funds and designed to maximize investment in the reduction of greenhouse gas emissions from the building sector. The goal is to attract private and federal funding to retrofit buildings following the state’s long-term climate objectives and funding new construction of decarbonized buildings. While the initial focus will be affordable housing and promoting an equitable energy transition and to meet the needs of environmental justice populations, the state looks to fund other projects in the future.
Seattle University is the first university in Washington State to divest from fossil fuels. It is also the first Jesuit Catholic university in the country to to divest from fossil fuels and to focus on socially conscious investing. It follows “Pope Francis’ 2015 encyclical letter “Laudato Si’” calls for action on the climate crisis and “care for our common home.”’
The University pledged to make this divestment in 2018. It took 5 years to divest 100% from fossil fuels.
Seattle.edu | Seattle University First in the State to Divest from Fossil Fuels
Pennsylvania eliminated sales tax and gross receipts tax on cell phone service. It is estimated to be $62 million general revenue loss. The policy argument is that cell service is an essential item.
PennLive | Pa. House passes bill eliminating taxes on cell phone service
Illinois ended its foray into private school tax credits by eliminating the item from the state budget, thereby effectively repealing the program.
New Hampshire is accelerating repeal of its interest and dividend tax. The tax will be phased out in 2025 instead of 2027.
Colorado’s HB23-1306 allows state legislators to block anyone, for any reason, on their private social media accounts. The bill only applies to a legislator’s social media accounts that (1) pre-date election (2) an account that is kept distinct from official action. This is a first of its kind law in the U.S.
Governing | Colorado Law Allows State Officials to Block on Social Media
A special session in Nevada will include legislation to fund the new stadium for the A’s that is in the works at the site of the Tropicana Las Vegas Casino Resort on the Strip.
Connecticut repealed its marijuana investor tax credits. According to the Hartford Business Journal, the tax credit program had led to $3.1 million in cannabis industry investments. In lieu of the investor tax credit, cannabis operators can now deduct business expenses.
mjbizdaily | Connecticut repeals marijuana investor tax credit, permits new tax deductions
how can a state protect its law enforcement revenue? By protecting law enforcement according to Louisiana which passed a law requiring people to stay back 25 feet from law enforcement when called to do so or face a penalty of up to $500 and/or jail time up to 60 days. Opponents say it could could prevent recordings of police brutality or misconduct.
brproud | Stay back: Legislature OKs bill to keep people 25 feet from police
North Carolina is considering SB 636 (2023 | NC) that will allow the State Board of Education the ability to supersede high school athletic policies in public schools. Why? Because a new high school athletic policy in North Carolina allows high school athletes to enter into name, image and likeness deals, effective July 1.
California passed AB886 (2023 | CA) that would require tech companies to pay a portion of their social media ad revenues, to be determined by arbitration, to the “journalism usage fee.” This fee will be paid to “news organizations producing content that is shared on their platforms.” The goal being to shore up California’s struggling news outlets.
A new study published in Nature Sustainability says that even with higher costs to cities for curbside recycling, ” the investment offsets the greenhouse gas emissions from non-recycled waste buried in landfills.”
Route Fifty | Curbside Recycling Offsets Garbage Emission Impact
Alabama Legislature agreed to provide Alabama taxpayers a one time $150 tax rebate. $300 for married couples. The total cost to the state: $393 million.
AP | Alabama lawmakers approve tax rebates of $150 per person
New Mexico has an official state smell, the smell of roasting chilis. What’s the official smell in your state?
Governing | What’s That Smell? New Mexico Has an Official State Aroma
Minnesota Legislature did not pass a sports betting bill after Democratic Senators began to peel off due to concerns about “social impacts of problem gambling and financial losses.” That meant the plan needed more Republicans but the Rs weren’t biting because they wanted the horse tracks included and the bill did not include horse tracks.
Minnesota became the 23rd state to legalize/decriminalize cannabis. A 320page-ish bill, House File 100 (2023 | MN) . Minnesota’s legislation will also allow for home growing. Legal sales will commence in 18 months.
MinnPost | MinnPost guide to the Minnesota Legislature’s 2023 ‘done’ and ‘undone’ lists
Minnesota Legislature gave Minnesota taxpayers a $1.15 billion one-time (inflation) rebate. That’s $260 for individuals, $520 for married couples and an extra $260 for every child, with a $1,300 maximum. There are income caps of $150,000 for household income & $75,000 for single filers.
MinnPost | MinnPost guide to the Minnesota Legislature’s 2023 ‘done’ and ‘undone’ lists
I was raised to question everything. Let’s dig into this…The Hill reports that InfluenceMap has traced the anti-esg movement to “a backroom campaign by the fossil fuel industry in states like West Virginia and Texas.” Internal documents allegedly seek to “: to tar moves by the financial sector to weigh the climate risks posed to the oil, gas and coal businesses as “discrimination,”” It started with legislation in West Virginia (the bill failed), then a white papers from the Texas Public Policy Foundation joined the fun, followed by State Financial Officers Foundation and American Legislative Exchange Council.
Financial minds are saying that their path led to anti-ESG policies costing states ” as large financiers elect to leave the public market, leaving municipalities and state pension funds with fewer, smaller options.”
The Hill | Documents reveal how fossil fuel industry created, pushed anti-ESG campaign
Threats against members of Congress are up 400% in the last 6 years.
NPR | Rep. Connolly’s aides injured in office attack have been released from the hospital
Rhode Island is moving toward free breakfast and lunches for all students. The Rhode Island Senate passed the legislation because data showed that nutritious meals foster better student outcomes. The bill author said, the state is either paying now and improving the state or paying later to address problems.
WPRI | RI Senate passes bill making lunch free at all public schools
Minneapolis has added 1/4 cent sales tax dedicated to affordable housing programs. The sales tax increase is expected to add $1 billion to housing programs in Minneapolis.
AP | Twin Cities sales tax bump will fund affordable housing programs
In 1979 Oregon , the Legislature passed Senate Bill 543 that required a bill analysis, a public document that explains what a bill does, should be written to be read by an 8th or 9th grader. This translates to the bill analysis being measured by a score of at least 60 on something called the Flesch readability test. Turns out the Oregon Legislature forgot about this rule, and its come up in 2023 as a means to enforce procedural rules. Republicans are trying to enforce the 1979 rule today.
AP | Hard to read? Oregon GOP boycott comes down to reading level
Where should stadiums be built? The Washington Commanders are on the lookout for a new stadium. The old stadium is in Washington D.C. on and owned by the Department of the Interior, and some would like the new stadium to return to Maryland suburbs. The argument is cities are for housing.
Manufacturers re-locating to Connecticut say the state’s long history of supporting a manufacturing workforce helped their decision. Connecticut points to its long tenured Executive position, Chief Manufacturing Officer, who reports directly to the Governor. Connecticut is the only state with a Chief Manufacturing Officer.
Governing | Connecticut’s Workforce Is Attracting Manufacturing Industry
The Nevada legislature is considering legislation that will support a new A’s stadium in Las Vegas with $500 million. The $500 million package includes tax credits and the creation of a special taxation district to help with stadium construction. It is thought the As will not move if the legislation does not pass.
Nevada Independent | Assembly leader: A’s stadium deal running out of time in Nevada Legislature
Illinois has the 2nd highest tax on cannabis at near 40%. California has the nation’s highest cannabis tax rate. Illinois also has seen only 48% move to legal cannabis sales. Michigan places a 10% excise tax on legal cannabis and has seen 75% of cannabis users move to the legal market. In 2022, this meant Illinois had cannabis revenue of $562 Million to Michigan’s $326 million.
My Stateline | Illinois’ marijuana tax revenue is the highest in the country, next to California
A federal proposal is calling for a 30% tax on the electricity used in crypto mining. Digital Asset Mining Energy or DAME excise tax and would phase in after 3 years.
Engadget | White House proposes 30 percent tax on electricity used for crypto mining
Always fascinating when a new divestment pops up. This time the Norwegian Wealth Fund is ceasing investments connected to Myanmar because its human rights conflicts. Are you thinking little Norway? Norway has the North Sea and its oil. This fund is big- $1.39 trillion.
Pensions & Investments | Norwegian wealth fund blacklists more companies with Myanmar ties
Cuyahoga County, Ohio is considering prohibiting county contracts for businesses that engage in wage theft or payroll fraud. It will apply to businesses that have been penalized or debarred for violations within the last 7 years. County contracts can be revoked & revokees banned for up to 5 years if businesses are caught cheating workers out of wages.
The Economic Policy Institute found that 217,000 Ohioans are victims of wage theft annually.
Governing | Ohio County Considers Blocking Businesses That Defraud Workers
Revenue from old school sin taxes is shrinking according to this new Tax Foundation Study. Good news, the new excise taxes have the potential to fill the gap. The new excise taxes include: carbon, cannabis, alternative tobacco products, ride-sharing, and plastics. The tax Foundation says, “the revenues from a carbon tax alone could exceed the revenues from all other excise taxes.”
In Iowa private citizens or non-profit organizations can file ethics complaints against incumbent legislators alleging conflict of interest because of financial and personal ties. In this case Iowa Citizens for Community Improvement filed a complaint against a legislator who did not set a certain bill for hearing based on social media posts. The Iowa Senate unanimously tabled the complaint, and a Senator said this is just the case of a Senator who should have refused to serve in that capacity.
Alabama legislators are pushing a 4 bill economic development package which will offer more incentives than in previous economic development programs. The bills will also require greater transparency as to what benefits companies receive. Sunshine in Alabama. Gov. Kay Ivey calls the bill package- The Game Plan.
AL.com | Alabama Gov. Kay Ivey announces ‘Game Plan’ aimed at creating jobs
Add Montana to the list of Legislatures toying with censuring one its members. I’m so perplexed. I don’t have to agree with you, but I respect your first amendment right to free speech. Did the first amendment get repealed and I forgot?
The Hill | Montana GOP caucus calls for censure of transgender lawmaker
States are dedicating their cannabis revenue to all sorts of things including substance abuse education and treatment, reduce recidivism, education, supplement corrections, wildlife conservation, veterans, and state’s general revenue fund. Point being, the revenue can be dedicated to any number of sources.
News Nation | Marijuana tax dollars and how they’re spent in different states
Friendly reminder that this weekend is the annual sales tax holiday for emergency supplies in Texas. As preppers like to call it, the best weekend of the year. What emergency supplies are sales tax free this weekend in Texas? Lots from generators under $3000 to first aid kits, batteries, flashlights, coolers and ice chests, tarps, portable radios, axes and hatchets, fire extinguishers, and smoke detectors.
Texas Comptroller | EMERGENCY PREPARATION SUPPLIES SALES TAX HOLIDAY
Milwaukee County is proposing harm-reduction vending machines stocked with opioid overdose treatments, fentanyl test strips and drug deactivation pouches for unwanted medications.
Route Fifty | Milwaukee County Set to Install Harm-Reduction Vending Machines
Oregon is providing child care assistance for construction workers. Only 4.2% of construction workers are women and 22% of construction workers will leave the industry shortly. There’s a shortage of construction workers and the U.S. Chamber of Commerce found that 27% of people who are not working say they aren’t looking for work because they need to provide care at home. Oregon says it is already helping with an increase of 28% of apprentices completing their programs with child care assistance.
Route Fifty | Oregon Provides Child Care Support for Construction Workers
Michelangelo’s David has been deemed pornographic by some Floridians. Governing explains other similar events like in George W Bush’s administration, John Ashcroft was not comfortable giving speeches next to two statues that detailed breasts so they covered the statues in drapes. Why not find the man another room to give speeches in?
Governing | A New Fig Leaf for Michelangelo’s David and Other Cover-Ups
Oregon wildfire victims want to re-classify their settlement as a non-taxable event for state tax purposes. HB3523 (2023 | OR)
California lawmakers want to create an ebony alert to alert Californians about endangered Black residents. While Black women account for 13% of the population, they account for 35% of missing women. SB673 (2023 | CA)
Minnesota wants to create an Office of Missing and Murdered Balck Women and Girls. HF55 (2023 | MN)
Governing | California Proposes Amber Alert for Black Women and Girls
Kentucky is set to welcome legalized sports betting on live professional and amateur sporting events at home race tracks is headed to the Governor. Sports gaming would be allowed at licensed race tracks, online through a website or mobile app. HB 551 (2023 | KY)
Blood Horse | Kentucky to Add Sports Wagering as Senate Approves Bill
Maryland is trying to figure out the tax structure for cannabis sales. The MD Senate favors a 9% flat sales tax with 5% of revenues going to local governments. The MD House favors an annual 1% increase in the sales tax with a cap of 10% sales tax.
WBAL | Senate recreational cannabis bill differs from House bill over taxes
Wallet Hub released its research on which states impose the most taxes on its residents and which impose the fewest taxes. The states with the highest taxes: NY, HI, ME, VT, CT & NJ. The states with the lowest taxes: AK, DE, NH, TN, FL & WY. What’s missing at the top in pop policy circles? CA is #12 and the bottom? TX is #29.
The Republican Governors from these 19 states: Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Iowa, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, Tennessee, Utah, West Virginia, and Wyoming ; have formed the Alliance Against ESG Investing.
DeSantis has a 7 point plan to combat ESG in Florida. He laid it out in his Alliance Press Release. Why does this sound like he’s trying to create his own group of self–identified super heroes?
Governor Ron DeSantis Leads Alliance of 18 States to Fight Against Biden’s ESG Financial Fraud
Texas Comptroller released a new list of companies that “boycott oil and gas.” Beyond the list, let’s look at the press release ripe with euro-shaming. Look, I’m biased being born in Europe to a Swedish citizen. But, bank shaming because the bank is European is going too far. We have recognized legal protections for national origins. I digress.
The statement goes on to say ““HSBC’s new energy policy is a prime example of a broader movement in the financial sector to push a social agenda and prioritize political goals over the economic health of their clients. HSBC’s policy clearly makes the firm a suitable candidate for listing under Texas law.” The economists that say this raises Texas’ bond costs have more information.
Turns out when Missouri legalized marijuana, it took tax revenue from nearby Illinois. The Show Me State’s 1st month total sales were $103 million. Stores across the border in Illinois saw sales fall by 30%. Sales in Missouri are also a lot more show me. Missouri customers can smell and see the product before buying. In Missouri product can be delivered to your home and can be sold in a drive through. The Show ME State is customer friendly.
Missouri has 1/2 Illinois’ population and 2x the number of cannabis retail establishments.
The Telegraph | Missouri’s customer friendly cannabis cuts into Illinois market
Illinois HB1575 (2023 | IL) will lower the state’s gas tax to 19 cents per gallon and removes a provision linking the tax to the consumer price index.
Montana wants to reallocate cannabis tax revenue from funding for protecting open access to public lands and send the revenue to county road maintenance funds. SB442 (MT | 2023) The governor wants the revenue to go to public safety and other legislators want the marijuana tax revenue to go to the general revenue fund. weed and its tax revenue gets people talking.
Independent Record | 3rd proposal to scrap Habitat Montana’s weed tax allocations gets Senate nod
West Virginia Legislature passed a bill to protect gun sale financial transaction records from disclosure unless subpoena, warrant, and the data is is not singled out, segregated, or disclosed based on the assignment of a firearms code. What’s the consequence for a financial institution? state may disqualify an institution from the competitive bidding process or other official selection process.
Governing | West Virginia Ends Session With Bills on Education, Guns, PFAS
Washington State Legislature has a Sunshine Committee. As in sunshine is the best disinfectant. After the state Supreme Court ruled in 2019 that the Legislature is subject to the state’s Public Information Act, the Legislature stopped enacting the committee’s recommendations. The point? Sometimes it takes a court and its spotlight to bring the light.
Seattle Times | The Legislature’s Sunshine Committee has fallen into darkness
The Tax Foundation says that moving away from a gross receipts tax would be more tax friendly to businesses and consumers and necessary for a mobile economy. 7 states have gross receipts taxes. In 2020, South Carolina converted a local gross receipts tax into a tax on net income. The Tax Foundation infographics on the tax pyramiding that results from a gross receipts tax.
Kansas wants to limit pension use of esg principles. A common refrain in Republican legislatures. The fiscal note for the bill in Kansas notes that the pension systems will lose $3.6 Billion in returns if the bill were to pass.
Reuters | Kansas anti-ESG bill could cut pension returns $3.6 bln -analysis
The Massachusetts state auditor, a former state senator, has the power to audit the legislature. Her office is auditing the state legislature, which was last audited in 1922. The goals are to “increase transparency, accountability and equity in an area of state government that has been completely ignored.”
AP | Massachusetts auditor announces rare review of Legislature
In the 1970s socially responsible investing included not investing in companies supporting apartheid. This sounds a lot like esg right? There’s a thought that trying to stop ESG is actually a desire to strop shareholder democracy, because you don’t want pensions casting crucial shareholder votes.
New York Times | On Wall St., ‘Socially Responsible’ Is Common Sense. In Congress, It’s Political.
Harvard Law School Forum on Corporate Governance published a new piece this week. The title says it all, The Liability Trap: Why the ALEC Anti-ESG Bills Create a Legal Quagmire for Fiduciaries Connected with Public Pensions. The highlights- the bills create a massive liability risk for any pension fiduciary or service provider; impose irreconcilable legal requirements; subject them to compliance with arbitrary and unworkable legal demands; and politicize state investments in a manner that empirical studies shows cause pecuniary harm. The article is a line by line take down of the bills.
“…two empirical studies have shown that participant/beneficiary trustees correlate with better fund returns, outperforming politicians and their appointees.”
Lake County, Illinois invested funds following state limitations on ESG investments & it was a winner for the county. The county chose to not invest in pharmaceutical companies that make opioids, because the budget drain opioids are on the county budget. The county also did not invest in firearms because of the mass shooting in Highland Park last July 4. Also no investments in Russian entities. “A quick review of recent history shows that companies that are bad corporate actors are not good investments in the long run.”
A group of legislators in Illinois have formed a legislative cannabis group to address equity in the cannabis industry in a business friendly way. Illinois’ recreational cannabis law grants “social equity” applicants—or those whose ownership consists of minorities, people with drug convictions or individuals hailing from disproportionately impacted areas– easier access to licenses.
Wild and crazy is not something I think of as a midwestern ideal. However, this week in Nebraska a property tax bill was filibustered because the bill’s author took a strong stance on prohibiting care for trans youth. Leadership reached an agreement to bypass the property tax bill, but the majority of the chamber voted against the compromise. Kenny Rogers would have thing or two to say about this hullabaloo.
In 2022 Houston business deals that include ESG totaled $1.25 Billion. Nationwide the total of ESG related deals was $15 billion according to PitchBook Data, Inc. “Increasingly, businesses are realizing that prioritizing ESG can be good for the bottom line, for the planet and for employees. “
Daylight saving time is slowly meeting its demise by winding its way through state legislatures. New Mexico could opt for standard time. SB 191 (2023 | NM) In Texas, bills like HB 1425 (2023 | TX) want voters to decide if they prefer sticking only to standard time or day light savings time. For those who know people in Arizona, Arizona stays on standard time.
KRQE | Daylight Saving Time bill passes first committee in NM Legislature
Minnesota’s Legislature is approaching expanded gaming & sports betting by putting the indigenous tribes in control. The state is not only moving to expand its gaming footprint but also offering online gaming. “Executives with the Minnesota Twins, Vikings, Wild, Timberwolves and Lynx signed a letter supporting the bill’s approach of partnering with tribes. Under the bill the major sports teams would not operate sports betting. “
MPR News | Sports betting bill at Minnesota Legislature would put tribes in charge
Vermont has 40 licensed Cannabis stores. The 14% excise tax revenue is meeting projections. The first month resulted in $329,000 in cannabis excise taxes. By December 2022, the monthly tax revenue was over $800,000. The first full year is expected to bring Vermont $16 million from the cannabis excise tax.
Florida Gov. DeSantis is working on legislation to ban ESG consideration in the municipal bond market. Why? Reports have said that fossil fuel divestment in states have increased municipal bond costs.
Bloomberg | DeSantis Proposes Barring ESG Criteria in Florida Muni-Bond Sales
Ohio’s proposed state budget increases the tax on sports betting revenue from 10% to 20% with the additional funds being directed to education and youth athletics.
Idaho’s Speaker of the House is supporting legislation that would require both chambers of the Legislature approve proposed rule making before rules are effective.
As a bonus, the new system will create a sunset process to review the necessity of administrative rules every 8 years.
Florida Legislature is considering SB170 (2023 | FL) that would allow private companies to sue local governments. It will also require local governments to conduct a business impact statement for each proposed ordinance.
Legislation in Missouri wants to limit access to open records when there is no “substantial administrative or operational value” that includes health and safety, security and more. Opponents say “This legislation is designed to effectively cripple citizens’ ability to gain a thorough understanding of what their government is doing.” SB 174 (2023 | MO)
Governing | Missouri Might Limit Public Access to Records, Meetings
Sports Betting for the Super Bowl is said to exceed $16 billion. It’s said 1 in 5 adults will be placing a bet. That’s up 61% from last year.
AP | Super Bowl gambling surging as states legalize it? You bet
Wisconsin Governor is proposing to send 20% of the sales tax revenue back to local governments and give local governments greater authority to raise their sales taxes.
According to the Governor, it’s to make up for the fact that cities “have been forced to do more with less.”
Route Fifty | A Governor Backs a Major Funding Boost for Counties and Cities
So much hype of dissolving Disney’s taxing jurisdiction… This year the Florida legislature wants to delay the dissolution and allow the Governor to directly appoint all the board members on the special taxing district board. Is it a dissolution if the Legislature creates a new special taxing jurisdiction for Disney, the Central Florida Tourism Oversight District?
Governors are opening state jobs to people who have but do have relevant skills, training or experience, but do not hold college degrees. Maryland Gov. Larry Hogan did it in spring 2022, as did Colorado Governor Jared Polis. GOP Gov. Spencer Cox of Utah ended 2022 with this step and Maryland Governor Wes Moore started his year by making this move. Not a red or blue issue but a support the working class issue.
Governing | One Smart Way to Win Over Working-Class Voters — and Help the Economy
This week Utah and Texas State Attorneys General sent a letter to Institutional Shareholders Services Inc and Glass Lewis & Co suggesting a violation of federal and state law concerning advice and duties of shareholder proxies. Why? ESG. The two Attorneys General are not fans of ESG.
Leave it to football to remind us that the S in ESG, sustainability, can refer to economic sustainability. A forthcoming regulator for English football I will govern the “financial sustainability of the professional game” based on a Sustainability Index .
The Athletic | The Football Sustainability Index: How well run is your club?
7 states (CA, HI, CT, IL, MD, NY & WA) represent about 60% of the nation’s wealth. All 7 states are proposing wealth taxes this week.
The Tax Foundation describes wealth taxes as ” wealth taxes are “economically destructive, their base is almost impossible to measure accurately, and they create perverse incentives and promote costly avoidance strategies. Very few taxpayers would remit wealth taxes—but many more would pay the price.”
Tax Foundation | Wealth Tax Proposals Are Back as States Take Aim at Investment
Wharton Business School study says Texas anti-ESG stance “raised costs to the public by as much as $532 million in its first eight months.” Economic types applied this analysis to other states that have passed similar laws with the cost increases for financing being up to an additional $70 million in Kentucky, up to $361 million in Florida, and up to $131 million in Louisiana.
Houston Chronicle | Further state-level boycotts of financial firms could come at a steep price
I’m a practical person. There were people living on this land before Columbus and the English arrived. The people who came to this land were foreigners & now descendants want to ban foreign investment. This is an interesting valley of irony in U.S. history.
In Texas, the ban is with legislation. SB 147 (2023 | TX) would prohibit investment in real property by persons (corporations too) from China, Russia, Iran and North Korea. SB 522 (2023 | TX) would prohibit investments in agricultural land by persons (corporations too) from China, Russia, Iran and North Korea.
In South Dakota, the ban is by Executive Order. It will stop state agencies from doing business with telecoms or IT firms that are tied to China, Cuba, Iran, North Korea, Russia and Venezuela.
Route Fifty | Executive Order Blocks State Business With ‘Evil Foreign Governments’
What is happening? A former Georgia State Supreme Court Chief Justice says that sports betting does not require a constitutional amendment because it can be included under the historical interpretation of the state lottery which is in the Georgia State constitution.
Why is this important? “Based on my review of the relevant law, the original public meanings of applicable terms and the historical context of those terms, it is my opinion that sports betting can be legalized as a state-run lottery for educational purposes solely through legislative action,” wrote the former Chief Justice for the Georgia State Supreme Court.
What is happening? Governor Greg Gianforte and the Montana Board of Investments today announced the State of Montana has reaffirmed its commitment to oppose “woke capitalism.” State Funds cannot be invested relying on ESG standards.
Montana.Gov | Governor Gianforte, Board of Investments Block ESG Investing of State Funds
What is happening? Larry Fink, the Blackrock CEO, is at Davos talking about the personal attacks he is receiving because of ESG misconceptions. He referred to the ESG political narrative as ugly and polarizing.
Investment Week | BlackRock’s Larry Fink: Attacks over ESG have become ‘personal’
What is happening? Davos is happening and there is a lot of ESG talk. The CEO of Bank of America said that global ESG standards will “align capitalism with what society wants from it.” He went on to talk about how it is crucial that sustainability and ethical standards became official and global.
CNBC | Bank of America CEO says new ESG rules are needed to reboot capitalism
What is happening? North Dakota House passed a bill legalizing sports betting this week. The bill will require a constitutional proposition on the 2024 ballot. republican support focused on additional state revenue and the bill’s oversight and regulation.
Associated Press | ND House passes legislation to legalize sports betting
What is happening? Minnesota legislators are considering proposals to permit recreational cannabis sales. The proposal includes an 8% sales tax and addresses diversity and inclusion by making it easier for small businesses and minority owned businesses to participate. A portion of the revenue will be directed toward community-building grants in areas disproportionately affected by cannabis law enforcement.
Ganjaprenuer | Minnesota Cannabis Legalization Proposal Includes Social Equity and 8% Tax
Connecticut opened to recreational cannabis sales. 1st day sales total $250,000. Nationwide the cannabis industry estimates $73 million in revenue for Connecticut by 2026.
NBC CT | Over $250K Made in First Day of Connecticut Recreational Cannabis Sales
What is happening? King County, Washington is considering a proposal to ban retailers that are cashless. The proposal would require retailers to accept cash up to $250 and would prohibit higher cash prices. Cashless became common at the outset of the pandemic to minimize contact. Supporters say that cashless businesses discriminate against low income consumers and raises privacy concerns.
Why is this important? 1.9% of King County residents are underbanked with no access to a bank account. Interestingly. I read recently that Denmark became a cashless country and saw the number of robberies decrease.
Governing | King County Council Considers Banning Cashless Retailers
What is happening? This month the German Supply Chain Due Diligence Act became effective. Ja, the Lieferkettensorgfaltspflichtengesetz, is now in full effect. (not a typo, this is the German name for this Act) To start, the Act applies to companies of at least least 3,000 employees. Small and medium-sized companies won’t escape the Act, but will meet different supply chain standards that also address sustainability. What does sustainability have to do with supply chain? When a product travels great distances to reach Germany there is a carbon footprint. The Act also covers supply chain workforce safety and labor protections, and places a due diligence duty on companies that operate in Germany to align their supply chain accordingly.
Why is this important? Countries and states are focusing on how to bring the supply chain back to their lands. Closer goods, fewer supply chain interruptions.
Roedl | The new German Supply Chain Due Diligence Act (LkSG) – what needs to be done
What is happening? The Midwest is using quality of life as its economic development tool. Here’s how it works in a nutshell: “The emerging focus on attracting people who can provide the foundation for a solid workforce in the region stands in contrast to other approaches to economic development” Making your state or city a better place for people to live (not because of politics) but because of quality of life. Hello, post COVID world. Hello, remote workers- do you too like a high quality of life?
Route Fifty | The Fresh Economic Development Strategy Emerging in the Midwest
What is happening? Data says the infrastructure workforce is retiring more than it is hiring, so they call it a silver workforce. 17 Million will retire in the next 10 years. It’s a problem because 2022, 16.6 million people were employed in the sector in 2022. 11% of infrastructure workers are 24 years or younger.
Why is this important? The jobs pay well but there’s no allure for the jobs. “Kids these days.” Statistically this sector is 80% male and it is very white. The tune sounds like if you want infrastructure workers, it’s time for some Diversity Equality and Inclusion.
Route Fifty | The ‘Silver Tsunami’ Expected to Hit the Infrastructure Sector
What is happening? New Data tools- yay! Municipal Securities Rulemaking Board’s EMMA database has made bond data more accessible. The Center for Municipal Finance Muni Index can give you a look into what investors think of your local government’s bond appeal. It’s like Tinder, but not.
Route Fifty | Real-Time Data on What Muni Bond Investors Think of Your City
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