The OHIO House and Senate endorse HB 554, which would allow utilities to continue ignoring the Buckeye State’s renewable energy targets for the next two years. The standards were initially created in 2008 and require utilities to make up 12.5 percent of their electricity mix with renewable energy sources and cut electricity consumption through efficiency programs by 22 percent, both by 2025. In 2014, legislators passed legislation enacting a hold on those mandates to allow for further review. The measure is now with Gov. John Kasich (R) for consideration (GREENTECH MEDIA).
The MICHIGAN House approves a seven-bill package that, among several things, does away with a zero-tolerance policy used by many school districts that opponents claim unfairly leads to too many kids being expelled from Wolverine State schools. The package, which would require school administrators to consider a pupil’s age, disciplinary history, severity of the misconduct and if the behavior threatened another student or staff member’s safety, moves to Gov. Rick Snyder (R), who is expected to sign the bills into law (DETROIT FREE PRESS, ASSOCIATED PRESS).
There are bad ideas and then there are ideas that reek like an animal that crawled up and died inside a wall of your house. A new proposal from a trio of Washington state lawmakers is definitely in the latter category. As Sports Illustrated reports, Reps. Matt Shea, David Taylor and Bob McCaslin have introduced a bill (HB 1015) that would allow folks to bring their guns into sports stadiums. It would in fact bar privately operated stadiums like Safeco Field and Century Link Field, home to MLB’s Seattle Mariners and Seattle Seahawks respectively, from enforcing their own current rules that prohibit fans from packing heat during a game. Because adding guns to a situation already overflowing with copious amounts of booze and testosterone...what could possibly go wrong?
Speaking of guns, it’s pretty much a requirement these days for a Republican candidate for any office – and in some states, Dems too – to be to the far right of Yosemite Sam when it comes to firearms. Hence, Prince William County Board of Supervisors Chairman Corey Stewart, who is seeking the GOP gubernatorial nomination, is all fired up. So to speak. As the U.S. News & World Report notes, Stewart is giving away an AR-15 rifle, a controversial weapon noted by many gun control advocates as one often used in mass shootings. And if you are wondering what kind of gov Stewart might make, the contest registration page appears to require a donation to his campaign. Only in the very fine print does it allow a way to enter without first forking over some cash. Which means he sounds ready to go on his first day in office!
Love him or hate him, reality TV star Donald Trump has definitely shaken up the world by winning the White House. And for better or worse, nothing says success quite like having someone try to copy you. Enter former Saturday Night Live cast member Joe Piscopo, an alleged comedian so funny nobody has heard from him in 20 years. Well, except for all the times Piscopo has hinted he might run for governor of New Jersey. Which, as the Hollywood Reporter recently noted, he is threatening to do next year when current Gov. Chris Christie’s disastrous second term is mercifully up. Like Trump, Piscopo has never held any public office, a fact actually behind what’s inspiring Piscopo to consider making a run at it. But it also begs the question: how well does he know Vladimir Putin?
-- By RICH EHISEN
Consumers’ purchasing behavior is increasingly influenced by businesses’ ethical behavior. Since this season of celebration and festivities and goes hand in hand with consumption, it is a good moment to look into some of the products that are at risk of being produced by people in modern slavery.
Seventy-seven percent of respondents in emerging markets said buying ethical brands was important or very important to them. In advanced markets, the number slips to 58 percent, but it’s clear that consumers are beginning to expect more from brands. These are the findings from an analysis of Trajectory’s Global Foresight Survey amongst 90,000 consumers, as reported by HSBC in 2016.
“We are […] seeing an evolution in consumer expectations. These include […] those relating to transparent, ethical and sustainable business practices.”
-Paul Flatters, Chief Executive of Trajectory
Another study, by Nielsen surveyed 30,000 consumers in 60 countries to understand how passionate consumers are about sustainable practices when it comes to purchase considerations, came to a similar conclusion:
“Consumers around the world are saying loud and clear that a brand’s social purpose is among the factors that influence purchase decisions. This behavior is on the rise and it provides opportunities for meaningful impact in our communities, in addition to helping to grow share for brands.”
-Amy Fenton, Global leader of public development and sustainability, Nielsen
Other recent research carried out in the UK by YouGov, suggested an even stronger response by young consumers. It came to the conclusion that 28 per cent of 18- to 34-year-olds would shun any brand revealed not to treat its workers fairly.
Whether you are an ethical consumer or a responsible retailer, you might want to consider your buying behavior regarding the following products.
As a business:
Every calendar year is full of inspiring successful Public Relations campaigns - and some embarrassing mistakes. While the latter category may be promotions those companies would rather forget, they offer strong educational lessons for the rest of the PR community.
Companies face difficulties and negative stories constantly, simply as part of existing. The responses to these problems, however, teach us how to be better PR professionals. Analyzing these situations and imagining better responses to them is good practice for us all.
To kick off the New Year, let’s take a look back at some missteps from 2016. By seeing what went wrong and sketching out alternate paths, it's easy to see where these failures could have been avoided or replaced with better options.
PR professionals viewing the above problems may feel superior - of course those were mistakes! However, one bad decision can put any company in the same position. If the stories of 2016 PR blunders teach us a few lessons, they are that every communication deserves time, consideration and focus. PR statements, campaigns or stunts that go into the world half-baked and without a critical eye may be thrown back by the audience.
At the start of 2017, we look at key trends and developments in regulatory compliance this year.
Beneficial ownership will remain a major issue in corporate transparency in 2017. Countries will face increasing pressure from intergovernmental bodies to improve the availability of beneficial ownership information. The Financial Action Task Force (FATF) will continue to monitor and report on how well countries are complying with their standards on beneficial ownership. The FATF intends to hold discussions on the evaluations they carried out on countries such as Portugal, Panama, Ireland and Nigeria in 2017. An update on countries’ progress on beneficial ownership will also be given to the G20 at its summit in Hamburg on 7-8 July 2017.
Countries are already acting on this increased pressure. For example, the FATF’s September 2016 report on Singapore found that the country’s measures to ensure the timely availability of accurate and updated information on beneficial owners were not sufficient. So at the end of 2016, Singapore's Ministry of Finance and Accounting and Corporate Regulatory Authority proposed changes "to ensure Singapore's transparency levels are in line with international standards".
The UK, France, Nigeria, Afghanistan and the Netherlands committed to establishing registers of beneficial ownership at the London Anti-Corruption Summit in May 2016, and every country in the European Economic Area (EEA) must implement a register of beneficial ownership for corporate entities by June 2017, as part of the EU’s Fourth Anti-Money Laundering Directive. The US Extractive Industries Transparency Initiative has published a ‘roadmap’ which proposes to conduct a review of the “legal barriers and enablers to public disclosure of beneficial ownership information under US law” in 2017.
In 2017 companies will face increasing scrutiny on their supply chains to ensure they do not engage in unethical sourcing practices, modern slavery or human trafficking. The UK’s 2015 Modern Slavery Act requires companies with an annual turnover of £36 million or more to submit a statement showing that their supply chain is free of modern slavery. This law has a global impact because it applies to any company that has a subsidiary based in the UK.
There are currently no punitive sanctions for not complying with this requirement, but late last year the UK’s Independent Anti-Slavery Commissioner Kevin Hyland said such sanctions could not be ruled out in the future.
2016 was another record breaking year for enforcement against bribery, and there were numerous high-profile enforcement actions against bribery, money laundering and sanctions breaches. Enforcement of the US Foreign and Corrupt Practices Act (FCPA) alone led to 26 companies paying about $2.48 billion to resolve cases in 2016.
The focus on tackling financial crime, corruption, and sanctions breaches will continue in 2017. This remains an ongoing priority at a time of heightened security and government agencies and authorities will continue to share intelligence and pursue mutual legal assistance.
Some of the main legislative impacts include:
Alongside new legislation will be the opportunity for companies to adopt the new international standard targeted at defining best practices for managing the risks of corruption and bribery. The Anti-Bribery Management Systems Standard, ISO 37001, was introduced in October 2016. Certification will help companies assure their customers, business associates and potential investors that they are taking reasonable steps to prevent bribery.
Further changes in sanctions are also expected in 2017, fuelled in part by political changes in a number of countries including the US.
The pace of progress in technology will increase in 2017, which will create even more opportunities for companies to realize efficiencies in their due diligence and monitoring process through automation. The development of Blockchain technology in helping to address compliance tasks will continue. Blockchain allows companies to provide a secure network between third parties to help facilitate transparent and safe transactions and automation document creation.
But even with sophisticated automated compliance systems, an Oxford University study on the future of employment found that the job of a compliance officer faces only a very small risk of being automated in the next 20 years. Good news, but that means you still have your work cut out for you!
There is a "strong risk" of modern slavery in the global construction sector and its material supply chains, according to a recent LexisNexis report. The report found that forced labor and other exploitation that constitutes modern slavery are common, concealed and subject to inadequate prevention, policing and prosecution. A 2015 research report from the European Union also found that construction was number two on the list of economic sectors in the EU most prone to labor exploitation.
A major reason for the sector’s vulnerability to modern slavery is its high demand for low-skilled, manual, low-waged work. Chris Blythe, Chief Executive of the Chartered Institute of Building (CIOB), outlined further reasons in a report. "Our business models must take a large part of the blame: the global trend towards outsourcing and cut price contracting makes it easy for main contractors to duck out of their responsibilities," he wrote. "The plight of the most vulnerable gets lost among the long and complex supply chains."
There have been new allegations of modern slavery in the construction industry in recent months. In December, a report by six NGOs claimed that workers in New Zealand's construction industry had entered into debt bondages to pay recruitment fees of about $10,000 NZD each. Their work experience documents and passports were allegedly held until they had paid their fees off. A report in December by the NGO Licadho reported finding examples of debt bondage and child labor in brick factories in Cambodia. In November and December, arrests were made in the UK as part of the Home Office’s enforcement campaign called ‘Operation Magnify.’ The campaign identifies and targets businesses in high-risk industries, including construction, where illegal migrant workers are being employed.
Modern slavery is rising up the international agenda, and in recent years more countries have introduced legislation to make companies more accountable for human rights issues in their supply chain. The European Non-Financial Reporting Directive, which came into force in 2016, requires organizations with more than 500 employees to file annual reports on their policies, risks and outcomes relating to issues including human rights, bribery and employee working conditions.
The 2010 California Transparency in Supply Chains Act requires certain companies to report on their specific actions to eradicate slavery and human trafficking in their supply chains. The UK's 2015 Modern Slavery Act requires companies with an annual turnover of $51 million or more to submit a statement showing that their supply chain is free of modern slavery. This law has a global impact because it applies to any company that has a subsidiary based in the UK. The CIOB report speculates that “as these laws will force organizations to take responsibility for human rights issues both at home and abroad, their influence is likely to be far reaching over the longer term."
LexisNexis and partners are holding a free webinar to help firms in the construction sector mitigate the risk of modern slavery in their supply chains. The webinar will take place on Thursday January 19 at 4pm GMT/11am EST. The panelists will give an introduction to ethical labor issues in the construction sector, and discuss why construction firms of all sizes should respond to modern slavery commitments and legislation. They will identify good practice which construction companies can follow, and what a company can do if an employee spots someone they suspect to be a victim of modern slavery. They will also discuss how a company can measure progress in its efforts to mitigate the risk of modern slavery in its supply chain. Register Today
With a whole new year stretching out in front of you, it's time to take stock of what trends and changes your department or company is going to face in the months ahead. The next steps for the Public Relations universe will likely include a few continuing trends from 2016, alongside a few long-gestating ideas whose times have come. Having the right strategies, technologies and experience in place to make the most of these new developments can give you an edge in 2017.
When it comes to pitching stories to publications, the process may speed up considerably in the year ahead. PR firm Affect recently listed a more complex pitch procedure as a major trend for 2017, based on the fact that journalists' jobs have now become defined by speed and volume of output.
How does a writer make an impact in an environment that's running through content at a record pace? More production is the answer, at least for now, which means it's time for PR professionals to adapt to this style and provide reporters with more grist for stories, especially when it comes to limited pieces of information. Affect called for PR team members to be ready with quick sound bites that journalists can deploy in a hurry. This helpful relationship may enable firms and PR departments to get messages into the hyper-speed news cycle.
While the news is likely to speed up, a separate trend recap from PR News explained that publications will be more interested in fact-checking. Following the proliferation of falsehoods and surprising turnarounds that defined 2016, reporters are looking for deeper information than ever to make sure they're not mistakenly publishing any “fake news.”
This means being ready with plenty of deep information on demand, to ensure your company or client appears in a good light - but how is such depth compatible with the increased speed described above? Finding the middle ground between high-speed news and a need for verifiable facts will be the challenge in 2017, inspired by the very atypical media year that was 2016.
When it comes to dealing with the public and managing your brand reputation, the watchword for 2017 may prove to be "human." Lithium's Dayle Hall, speaking with PRWeek, explained that even though companies dallied with the idea of using artificial intelligence to interact with people in 2016, consumers still crave a personal touch.
Hall compared 2017 and online interactions to the dawn of automated help lines. Companies that thought they were riding a technological wave by taking people out of the customer service equation ended up alienating their consumers, while the old-fashioned organizations scored PR wins by being more human.
The complexities of PR in 2017 will build on the challenges of 2016. With the right equipment and preparation in your bag of tricks, however, you'll be able to keep up. This is one case where your IT preparations may seriously empower your efforts to stay relevant. Media monitoring and media intelligence solutions can keep up with the high-speed news cycle, give you an in-depth view of outlets around the world and ultimately strengthen your campaigns.
The aforementioned tech, combined with a super-powered combination of fast reactions, deep insights and a good dose of humanity, will see your team of PR Superheroes through 2017. In an environment that is evolving and speeding up, there are advantages to be gained for companies that can adeptly make changes and adopt new tactics faster than their competitors.
Last fall, California Gov. Jerry Brown (D) joked that if then-GOP presidential candidate Donald Trump won the election, the Golden State “would have to build a wall around California to defend ourselves from the rest of this country.” He was quick to emphasize that he was kidding, but with just days from Trump ascending to the presidency few in deep blue California are laughing. As the state with arguably the most to lose from the policies of a Trump administration, Brown and Democratic lawmakers are gearing up to resist the incoming president on numerous fronts.
Democratic lawmakers have already introduced a number of bills intended to counter two of Trump’s most controversial campaign vows: his stated intention to deport millions of unauthorized immigrants and to build a massive wall along the southern U.S. border. Those measures include: SB 54, authored by Senate President Kevin de León (D), which would bar state officials from cooperating with U.S. Immigration and Customs Enforcement on deportation cases and create so-called “safe zones” in public schools, hospitals and courthouses where federal immigration laws would not be enforceable; AB 3 (Bonta) which would create regional centers paid for by the state to train attorneys on immigration law; SB 6 (Hueso), which would create a state-funded program where court-appointed lawyers would represent people facing deportation; and AB 21 (Kalra), which would require federal immigration officials to notify public college and university administrators before they go on campus.
Immigration policy is not the only area of concern for lawmakers. Brown has made combatting climate change a focal point of his time in office, and he has said California will continue its ongoing efforts to reduce greenhouse gas emissions with or without federal cooperation. Just over a week after those bills were introduced in a brief one-day session on December 5, Brown told a gathering of global climate scientists in San Francisco that should Trump move to block the gathering of climate data by federal scientists – as some on his team have suggested could happen – California is prepared to take matters into its own hands.
“If Trump turns off the satellites, California will launch its own damn satellite,” he said. “We’re going to collect that data.”
Brown, however, hedged on that a bit during his annual budget release press conference last Tuesday. When asked by this publication if he still intends to launch a satellite if the Trump administration stops collecting climate data – and where the money to pay for it will come from if he does - he said “I don’t see any evidence yet the [president–elect] is going to stop collecting climate data.” He ascribed such talk to someone on Trump’s transition team and not the incoming president himself, but added he “would not rule out any initiative” to ensure data gathering continues.
Earlier that day Brown also acknowledged he is expecting a wide array of confrontations with the Trump administration, from health care to the environment. But if and when California’s efforts turn to legal action, they will come with a new attorney general at the helm. With former AG Kamala Harris (D) now in the U.S. Senate, Brown’s nominee to replace her, former state lawmaker and longtime Congressman Rep. Xavier Becerra (D-California), vowed to “advance and defend the rights – big and small – of all Californians.”
Under questioning from an Assembly committee meeting to consider his nomination, Becerra took great care to note the difference between federal laws and those that originated in California. The federal government would have to prove, he said, that in pre-empting a state law it is not violating the civil rights of the people of that state. He also said that while he would not go looking for a fight with the Trump administration he would not shy away from one either.
“I’m not a litigious guy,” he testified, “But I’m not going to let someone roll over me.”
He will have some help, at least in the beginning. Earlier this month the legislature hired former Obama administration Attorney General Eric Holder to help them with any legal challenges to new federal policies. The hire drew sharp criticism from Republicans, who said Democrats were being wasteful of taxpayer money by presuming what Trump would do before he has even been sworn in.
But de León defended Holder’s $25,000 per month price tag, saying, “It is a minimum investment because of what’s at stake here: Tens of billions of dollars that may be lost because of a hostile administration toward the policies of California and the people of California.”
These measures are all part of what Yale Law School Professor Heather Gerken calls “uncooperative federalism.” In an article written for Vox last December, Gerken noted that since the federal government relies so heavily on state and local cooperation in implementing federal laws and objectives, states “can influence policy simply by refusing to partner” with them, adding that defeating that kind of resistance often “costs fiscal resources and political capital the federal government would rather employ elsewhere.”
Gerken notes that cities may also practice their own “uncooperative localism,” particularly over immigration policies they dislike. In that regard, the city of Los Angeles – home to about 1 million of the state’s estimated 2.67 million unauthorized immigrants - is already well ahead of the legislature. The Los Angeles Police Department announced last November it would not aid federal officials in any future mass immigration sweeps. Mayor Eric Garcetti (D) also vowed to defend immigrants against any Trump administration actions the city deemed harmful to Angelenos.
“If the first day, as president, we see something that is hostile to our people, hostile to our city, bad for our economy, bad for our security, we will speak up, speak out, act up and act out,” Garcetti told the Los Angeles Times.
Several big city mayors from around the nation, including New York City, Philadelphia, Seattle and Minneapolis, have expressed similar intentions to protect their immigrant communities. And while Trump has threatened to cut off federal funding to cities that don’t do as he wants, a 2012 ruling that kept the Obama administration from similarly threatening to cut off federal dollars to states that didn’t go along with the Affordable Care Act may not allow him to do so.
None of this is particularly new. States have invoked federalism to resist federal policies they don’t like for generations. Until recently segregationists most famously used states’ rights as a mantra for resisting the advance of civil rights. But such tactics became commonplace during the Obama administration as red states sought to push back against the Affordable Care Act, federal clean air policies and other federal initiatives they disliked. Ironically, it will now be large-government blue states like California looking to embrace their inner Thomas Jefferson. Their success or failure is yet to be determined, but in a statement shortly after the election in November Assembly Speaker Anthony Rendon (D) made clear he and his colleagues are ready to rumble.
“Californians should be wary of the national calls for unity and healing,” he said. “Unity must be separated from complicity. We must be defiant whenever justice, fairness, and righteousness require. Californians do not need healing. We need to fight.”
California and New York are “emerging as the East and West Coast headquarters” of the Democratic resistance to immigration and other policies proposed by Republican President-elect Donald Trump that are opposed by progressives, according to Politico. California’s Legislature has gone as far as retaining Eric Holder, President Obama’s attorney general, to represent them in legal battles with the Trump administration. Politico also reported that the few other states where Democrats control both the governor’s office and both chambers of the legislature - Connecticut, Delaware, Hawaii, Oregon and Rhode Island - also intend to pursue some form of “opposition agenda.”
Source: Politico
Legend:
States taking lead in opposing Trump policies: California, New York
Other Democrat-controlled states planning opposition efforts: Connecticut, Delaware, Hawaii, Oregon, Rhode Island
KANSAS Gov. Sam Brownback (R) has proposed a budget calling for tax increases, borrowing and the use of one-time sources - but not the repeal of the so-called LLC loophole exempting over 330,000 farmers and business owners from paying any state income taxes - to address the state’s budget troubles in his final two years in office. (LAWRENCE JOURNAL-WORLD)
Two of the nation’s largest drug wholesalers, Cardinal Health and AmerisourceBergen, have agreed to pay a combined $36 million to settle lawsuits alleging the companies benefited from a prescription drug abuse problem in WEST VIRGINIA. The settlement comes after an investigative report by the Charleston Gazette-Mail indicating that drug wholesalers shipped 780 million hydrocodone and oxycodone pills to the state between 2007 and 2012, during which 1,728 residents fatally overdosed on the two painkillers. (CHARLESTON GAZETTE-MAIL)
State budget cuts and tax changes, including elimination of the state estate tax and the expedited phase-out of local business taxes, have left OHIO local governments with $1.2 billion less funding in 2017 than they had in 2010, according to Policy Matters Ohio, a left leaning think tank. The administration of Gov. John Kasich (R) contends that income and sales tax revenue growth during the state’s recovery from the recession has offset some of the local government funding losses. (CLEVELAND.COM)
INDIANA’s Republican-controlled House has proposed a plan to generate $800 million for road projects over the next two years, mainly through a 10 cents-per-gallon increase in the state’s gas tax. The state’s Republican-controlled Senate and former Gov. Mike Pence (R) blocked a similar House proposal last year but that chamber and new Gov. Eric Holcomb (R) may be more open to the idea this year. (INDIANAPOLIS STAR, LEXISNEXIS STATE NET)
-- Compiled by KOREY CLARK
For the past several years states have been pretty good about saving money for a rainy day. Most have restored their cash reserves to pre-Great Recession levels, and 13 have actually socked away twice as much money, a notable achievement considering the slow growth rate of the economic recovery.
John Hicks, executive director of the National Association of State Budget Officers (NASBO), attributes the states’ savings progress to the tough lessons learned during the recession.
“We’re seeing an evolution of those [savings] practices,” said Hicks, “and I’d say the experience of the Great Recession was probably the best teacher.”
But tougher financial times may be ahead. According to analysis of budget data from NASBO by Governing, state rainy day fund balances are projected to be down slightly in 2017 compared to last year, with the median rate at 4.9 percent of annual expenditures versus 2016’s 5.1 percent. And with roughly half of states projecting budget shortfalls for 2017, budget reserves could dip even more. (GOVERNING)
Four years ago, in presenting his proposed budget for 2013-14, California Gov. Jerry Brown (D) declared that the state had finally ended its cycle of chronic multi-billion-dollar budget deficits.
“For the next four years we are talking about a balanced budget,” he said. “We are talking about living within our means. This is new. This is a breakthrough.”
But last week, Brown unveiled a budget proposal for 2017-18 that “eliminates a projected $2 billion deficit,” according to a press release.
“The surging tide of revenue increases that we enjoyed the past few years appears to have turned,” he said in a letter to state lawmakers.
The governor went on to say that while that amount “pales in comparison to the $27 billion deficit we faced in 2011, it demands our attention.”
“Small deficits can quickly mushroom into large ones if not promptly eliminated,” he said.
The governor’s $179.5 billion spending plan seeks to close the projected budget hole by slowing the growth of public school funding and rolling back some planned one-time expenses.
He also warned lawmakers the state would likely face “even worse financial news” in “coming years” from “the next inevitable recession or from changes at the federal level.”
The repeal of the Affordable Care Act that Republicans in Congress and President-elect Donald Trump are seeking, for instance, could be a major blow to the state, with federal subsidies to the state’s Medicaid program, MediCal, now topping $16 billion.
That effort, Brown told reporters at the state Capitol last week, “isn’t very consistent with decency or even being a very smart political leader.” But as he wrote to lawmakers: “This uncertainty about the future makes acting responsibly now even more important.” (LOS ANGELES TIMES, CALIFORNIA GOVERNOR’S OFFICE, NEW YORK TIMES)
A weekly newsletter from the city manager of Pasadena, California in September included a memo from the city’s director of finance indicating that, effective Jan. 1, the 9 percent utility tax approved by voters in 2008 would apply to video streaming services like Netflix and Hulu. The 2008 referendum, which was passed by a vote of 58 percent to 42 percent, specified that the utility tax would apply to the transmission of “voice, data, audio, video or any other information,” the memo stated. But after residents complained about the city’s decision, it backtracked.
“The notion of extending the 2008 voter-approved [utility users tax] to additional cable-like services is under review,” said the city’s spokesman, William Boyer. “There is no timeline for when the issue will be decided.”
Much the same thing happened in Chicago in 2015, when that city announced it was going to extend its 9 percent amusement tax and a levy on the lease of cars and other equipment to streaming video and music services. In that case, however, a class-action lawsuit brought by the libertarian Liberty Justice Center stopped the tax expansion from taking effect.
Supporters of streaming taxes say they’re needed to adapt tax codes to the modern world, in which consumers no longer rent DVDs from the local Blockbuster Video store, which are subject to sales tax. Pasadena and other cities also argue that regulations adopted nearly a decade ago give them the authority to extend taxes on water, electricity and cable TV to streaming services.
But opponents object to that approach.
“The idea that we are taxing Netflix and Hulu like water doesn’t make sense,” said Robert Callahan, California executive director for the Internet Association.
One problem, as David Kline, spokesman for the anti-tax California Taxpayers Association, pointed out, is that pixels are portable: a Netflix subscriber who resides in a city in California can easily view a Netflix show while vacationing in Hawaii.
“Is the city going to tax all your use of the service when it’s completely out of their jurisdiction?” he asked.
Callahan and others also say voters, or city councils at the very least, should have a say on the issue, before such taxes are imposed.
Some cities appear to be listening to the criticism. According to the financial firm MuniServices, which advises cities, including Pasadena, on structuring and collecting utility taxes, at least 45 cities planning to apply their utility taxes to streaming services are now reassessing their options in consultation with the streaming industry.
Joe Henchman, vice president of legal and state projects for the nonpartisan Tax Foundation, said that in spite of the current opposition, though, the tax structure will ultimately follow the economy’s shift to digital.
“That’s where the money is,” he said. (STATELINE.ORG)
Republicans maintained control of the VIRGINIA Senate after special elections last week to replace two members elected to Congress in November. Democrat Jennifer L. McClellan defeated Libertarian Corey Maurice Fauconier in the 9th Senate District, while Republican Mark Peake beat Democrat Ryant Washington in the 22nd Senate District, leaving the chamber with 21 Republicans and 19 Democrats. (WASHINGTON POST, ASSOCIATED PRESS, NBC12 WWBT [RICHMOND])
MISSISSIPPI House Speaker Philip Gunn (R) guided a campaign finance reform bill (HB 479) through his chamber last week, sending the measure to the Senate. The bill comes after reports last year from The Associated Press and The Clarion-Ledger indicating officials were spending campaign funds on clothes, cars and retirement. (ASSOCIATED PRESS)
The U.S. Supreme Court put on hold a court-ordered legislative redistricting and special election in North Carolina while it considers an appeal from Republican lawmakers in the state to keep the current districts in place through at least 2018.
A lower court ruled last year that those districts constituted an unconstitutional racial gerrymander and ordered the state’s Republican-controlled General Assembly to draw new ones by March 15 and then hold a special election for the new districts in November.
Rep. David Lewis (R), who oversees redistricting efforts in the state’s House tweeted his approval of the ruling.
“#FairAndLegal No 2017 elections for #ncga. #SCOTUS halts flawed, partisan, lower court ruling,” he wrote.
But a statement from the Southern Coalition for Social Justice, representing those challenging the state’s legislative districts, downplayed the significance of the high court’s ruling.
“Today’s action just puts everything on hold while the U.S. Supreme Court considers the appeal of whether the district court was correct to order special elections in 2017,” said the organization’s executive director, Anita Earls. “On behalf of our clients, we continue to trust that the district court’s ruling will be upheld and new districts ultimately will be drawn that are not based on race.”
The hold will remain in place until at least Jan. 19, when the justices will consider the appeal to keep the state’s current districts in effect. (NEWS & OBSERVER [RALEIGH], USA TODAY)
Republicans won control of a few more governors’ offices and state legislative chambers in November, giving them command of both branches of the government in states where Democrats had previously maintained footholds, including Iowa, Kentucky, Missouri and New Hampshire. And they haven’t wasted any time acting on legislative priorities Democrats had blocked.
Last week, Gov. Matt Bevin (R) signed legislation making Kentucky the nation’s 27th right-to-work state, prohibiting employers from requiring workers to join a union or pay union dues as a condition of employment, an issue Democrats claim is really aimed at hurting a key base of support for their party. Now the race is on between New Hampshire and Missouri to determine which will become the 28th state, with lawmakers in each having fast-tracked right-to-work proposals.
Kentucky Republicans have also set their sights on prevailing wage laws, requiring businesses awarded government contracts to pay their employees higher hourly rates, while Iowa Gov. Terry Branstad (R) is targeting unions’ collective bargaining rights.
Republicans in a few states are also seeking to overhaul their medical malpractice systems, at the expense of trial lawyers who represent another key funding source for Democrats. Kentucky Sen. Ralph Alvarado (R), a doctor, has introduced a measure that would require review by a panel of medical providers before a malpractice claim could be filed in court. A similar proposal approved by the state’s GOP-controlled Senate in the past was killed by the House, which was run at the time by a Democratic speaker who was also a trial lawyer. Michigan passed legislation in December closing a loophole that let patients sue for more damages. And Missouri is also planning action on tort reform.
Texas, meanwhile, has taken action to cut off funding for Planned Parenthood - the reproductive health services network that provides abortion procedures - through the state’s Medicaid program, and Iowa plans to do the same this year.
“What we were hearing was that people want to elect people that have bold ideas, but then they expect solutions,” said Linda Upmeyer, the GOP speaker of Iowa’s House. “They see [Republicans] as more likely to change some things they are frustrated by, and I think first and foremost our job is to find solutions.” (HILL)
Just six months into a new policy that limits welfare recipients to no more than a year on public assistance, ARIZONA Gov. Rob Ducey (R) proposed last week returning to the previous limit of two years. The one-year limit is the most stringent in the nation. (ARIZONA REPUBLIC)
VIRGINIA Gov. Terry McAuliffe (D) issued Executive Order No. 61 last week, which requires all future contractors that do business with the Executive Branch to adhere to a non-discrimination policy that includes bias based on sexual orientation or gender identity. The order also bars state agencies and employees from discriminating against anyone based on those criteria. (RICHMOND TIMES-DISPATCH, VIRGINIA GOVERNOR’S OFFICE)
Saying he wished to help people overcome “the very real struggles” caused by having a minor marijuana convictions on their record, outgoing VERMONT Gov. Pete Shumlin (D) pardoned 192 people convicted of such crimes before the state decriminalized possession of small amounts of marijuana in 2013. Shumlin left office on Jan. 5. (BURLINGTON FREE PRESS, VERMONT DIGGER)
-- Compiled by RICH EHISEN
Saying “Our children are dying,” New Jersey Gov. Chris Christie (R) vowed during his last State of the State speech to focus his attention this year on battling drug addiction in the Garden State.
Christie unveiled a number of proposals to combat addiction, including asking lawmakers to support legislation mandating that anyone with health insurance must be covered for the first six months of in-patient or outpatient addiction treatment. Other efforts included seeking rules to limit pain medication prescriptions to no more than five day supplies, a “one-stop website” for people to access addiction information and treatment options, and plans to invest state dollars in various treatment and recovery programs.
Democrats, who control both legislative chambers, generally praised the governor’s proposals. But lawmakers like Assemblymember Shavonda Sumter (D) also urged Christie to join them in opposing Congressional action to repeal the Affordable Care Act, noting the devastating impact that repealing the health law would have on battling the growing addiction problem.
“When we look at the federal government and talk about the unraveling of Obamacare, what is the impact on (mental) health care providers, and the people who have been able to receive treatment because of Obamacare?” she said. (NJ.COM, PHILADELPHIA INQUIRER)
North Carolina Gov. Roy Cooper (D) notified federal officials of his intention to expand Medicaid in the Tar Heel State, setting up a potential legal battle with the GOP-dominated General Assembly. Republicans contend that a 2013 state law specifically bars the governor from expanding Medicaid without lawmakers’ approval. Cooper, meanwhile, says the law doesn’t apply to his draft plan. Outgoing Health and Human Services Secretary Sylvia Burwell suggested last week that her agency could expedite Cooper’s proposal, although it is likely any effort to actually grow the program will lead to a legal challenge. Republicans also argue that it would be foolish to expand the program now as Congress and President-elect Donald Trump have made clear their intention to repeal the Affordable Care Act, the linchpin of such expansion in the states. To date, the GOP-controlled Congress has not announced any plan to replace the law, which could potentially cause millions of Americans to lose their health insurance. (NEWS & OBSERVER [RALEIGH], ASSOCIATED PRESS, CITIZEN TIMES)
New York Gov. Andrew Cuomo (D) chose a highly unorthodox format for his annual State of the State address this year: forsaking a speech made to lawmakers in favor of a weeklong statewide tour in which he presented his agenda to audiences in six different Empire State locales. Those presentations covered a wide range of topics old and new, including a proposal to offer free tuition at state colleges for lower-income students and a multi-pronged plan to tighten ethics rules for lawmakers.
To be eligible for the free tuition program, dubbed the Excelsior Scholarship, students would have to be from a family earning less than $125,000 a year and attend one of the state’s public two- or four-year colleges. Cuomo said the program, which would apply to students from about 940,000 families, would cost approximately $163 million annually. If approved by lawmakers, the program would be in place by 2019.
Cuomo was joined in announcing the plan by U.S. Sen. Bernie Sanders (I-VT), who predicted many states will follow suit if lawmakers ultimately sign off on the plan. It drew immediate support from Cuomo’s Democratic colleagues, but Republicans have so far remained silent.
The governor’s ethics proposals would implement a variety of reforms, including constitutional amendments to institute legislative term limits and to limit outside legislator income. They would also close loopholes that allow lobbyists and special interests to get around contribution limits and make the legislature subject to Freedom of Information laws. The package was a direct reaction to ongoing legal and ethical scandals in Albany that led PolitiFact to recently dub New York the most politically corrupt state in the nation.
Lawmakers must also approve the ethics package. (NEW YORK TIMES, POLITIFACT, NPR, GOVERNING)
KENTUCKY Gov. Matt Bevin (R) signs HB 2, a bill requiring women to obtain an ultrasound prior to proceeding with an abortion and for images from that procedure to be shown to the mother. The American Civil Liberties Union quickly filed suit seeking to block the law from being implemented (LOS ANGELES TIMES).
A federal court issues a ruling ending court supervision over the District of Columbia’s care for people with intellectual and developmental disabilities. The ruling by U.S. District Judge Ellen S. Huvelle concludes a 40-year class action lawsuit over that care (WASHINGTON POST).