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    Does Your Due Diligence Process Need a Check-Up?

     Earlier this year, Teva, a drug-maker in Israel, disclosed to both the U.S. Securities & Exchange Commission and the U.S. Department of Justice that an on-going internal probe has revealed possible violations of the Foreign Corrupt Practices Act (FCPA) and/or local laws. It’s not an admission that investors like to hear; yet in recent years, according to FiercePharma, “That’s something some of Teva’s pharma peers know all too well.”  More worrying, a spokesperson for Teva said, “There can be no assurance that the remedial measures we have taken and will take in the future will be effective.” A robust due-diligence process can, however, help mitigate the risk.

     Why is the Pharma Industry Vulnerable to Compliance Risk?

    If you look back at other recent enforcement actions—probes that cost pharma and bio-tech companies more than
    $140 million in settlements—the growth of business into emerging markets like China, Russia and South America has increased risk.  The SEC’s director of enforcement, Andrew Ceresney, indicated that pharmaceutical companies will continue to be susceptible because their operations are considered high risk. For example, in countries with state-owned healthcare facilities, administrators or physicians fall into the realm of government officials—and incentives to move new drugs onto approved programs may be considered bribes, even if the ‘incentives’ are the work of third-party agents. If someone is acting on your behalf, you’re vulnerable.

    In his remarks at a pharmaceuticals industry event, Ceresney suggested eight necessities for an effective FCPA compliance program:

    1. Hire enough compliance personnel
    2. Put policies and procedures in place and test them periodically
    3. Train employees to understand compliance risks
    4. Conduct thorough vendor reviews
    5. Establish a robust third-party due-diligence process
    6. Put accounting and expense controls in place
    7. Devise a procedure for identifying and escalating red flags
    8. Perform regular internal audits 

     The prospect of criminal or civil penalties is not the only concern; pharma companies that violate compliance laws—on their own or through third parties—risk having limitations placed on future business ventures in those countries, along with the reputational damage that arises from the negative publicity. Now, more than ever, pharma companies need to establish comprehensive due diligence and monitoring as a preventative measure in these volatile—but potentially lucrative—emerging markets. Do you have confidence in your current due-diligence program?

     3 Ways to Apply This Information Now

    1. Download How Due Diligence and On-Going Monitoring Alleviates Healthcare Supply Chain Risk to understand the pains in the Pharma supply chain and what you can do to mitigate risk.
    2. Explore LexisNexis® solutions that support due diligence and on-going monitoring to reduce risk.
    3. Share this blog on LinkedIn to keep the dialogue going with your colleagues and contacts. 

    Credits - July 20 2015

    Editor: Rich Ehisen

    Associate Editor: Korey Clark

    Editorial Advisor: Lou Cannon

    Contributing Editor: Mary Peck, David Giusti

    Correspondents: Cathy Santsche, Felicia Carrillo

    Graphic Design: Vanessa Perez Design

    Bring the Funny, Save a Life

    We’ve all seen road signs warning us to slow down, pay attention or just knock off whatever stupid thing we might be doing behind the wheel. Or better said we’ve ignored them. But now Utah officials are taking a new approach. As Governing magazine reports, the Beehive State is turning to witty or even funny electronic signs to get motorists’ attention. Winners so far include catchy notes like “Steering wheel: not a hands-free device” and “Turn signals: the original instant message.” Utah isn’t the first state to resort to the humorous signage. Massachusetts pioneered the idea last year with signs that played off the regional vernacular: “Changing lanes? Use yah blinkah” and “Make yah ma proud, wear yah seatbelt.” What, nothing referencing “chowdah?” Sheesh. 

    Business - July 20 2015

    States Allowed to Require Employee Retirement Savings

    President Barack Obama announces the U.S. Department of Labor will develop new rules that allow states to require some employers to offer a retirement savings plan or automatically enroll workers in an individual retirement account. President Obama said the DOL will have those rules implemented by the end of the year (BLOOMBERG).

    OR Signs Employment Bills

    OREGON Gov. Kate Brown (D) signs a trio of employment-related bills, including: SB 454, which requires employers with at least 10 employees to grant those workers 40 hours of annual paid sick leave; HB 3025, which makes it illegal for employers to inquire or consider an applicant’s conviction history on an application form, before an interview or before a conditional offer of employment; and HB 2960, which makes the Beaver State the first in the nation to take advantage of the new Dept. of Labor rules and automatically enroll workers in a defined-contribution plan if they are hired by an employer that does not already offer retirement benefits (STATESMAN-JOURNAL [SALEM]).

    MO Signs Honey Bill

    MISSOURI Gov. Jay Nixon (D) signs SB 500, which allows Show Me State beekeepers to sell honey through third party distributors without having to have it bottled by a commercial kitchen. The law goes into effect on August 28 (ST. LOUIS POST-DISPATCH).

    CA Approves AB359

    The CALIFORNIA Senate approves AB 359, which would require grocery stores to retain all current employees for at least 90 days if the store changes ownership. The measure moves to Gov. Jerry Brown (D) for consideration (LEXISNEXIS STATE NET).  Also in CALIFORNIA, Gov. Brown signs AB 202, which codifies that NFL cheerleaders are employees of the teams they cheer for and should be paid no less than minimum wage for their efforts (LEXISNEXIS STATE NET).

    NJ Implements Whistleblower Protection

    The NEW JERSEY Supreme Court rules that workers employed to monitor whether their employer complies with standards and regulations are protected by whistleblower protections that prevent retaliation against employees who disclose their employer’s legal transgressions (NEWARK STAR-LEDGER).

    Walker Expands AK Medicaid

    Rebuffed by lawmakers in his effort to expand Medicaid in the Last Frontier, Gov. Bill Walker (I) on Thursday announced he would do so without them. At a press conference last Thursday, Walker told reporters he had sent a letter to the state Legislative Budget and Audit Committee giving lawmakers the required 45-day notice of his intention to accept additional federal funding to expand Medicaid in Alaska. The move comes after lawmakers rejected the governor’s expansion proposal earlier this year.

     

    “Today, Alaska becomes the 30th state to accept the benefits of expanded Medicaid” Walker said. “By September 1, this 45-day period will run and Alaska will have expanded Medicaid.”

     

    He also defended going around the Legislature, saying lawmakers left him no other choice.

     

    “This is the final option for me. I’ve tried everything else,” he said. “Alaska and Alaskans cannot wait any longer.”

     

    Walker made Medicaid expansion a focal point of his gubernatorial campaign in 2014, a stark contrast to then-Gov. Sean Parnell (R), a vehement expansion opponent. But the GOP-controlled legislature rejected Walker’s proposal and later sidestepped his call for a special session to deal specifically with the expansion issue. That refusal, Walker said, was costing the state millions of dollars in federal aid to pay for the expansion.

     

    “Every day that we fail to act, Alaska loses out on $400,000. With a nearly $3 billion budget deficit, it would be foolish for us to pass up that kind of boost to Alaska’s economy,” he said.

     

    Under the Affordable Care Act, the federal government will pay 100 percent of the cost of newly-eligible Medicaid enrollees through 2016 before falling to a 90/10 split by 2020. The expansion is expected to provide health coverage to around 40,000 Alaskans currently without insurance. (ALASKA DISPATCH, WALL STREET JOURNAL, KTUU.COM [ANCHORAGE])

     

    FL Supreme Court Rejects Congressional Remap

    The Florida Supreme Court threw the state’s political landscape into chaos this month when it threw out the congressional district map drawn by the Republican-led Legislature in 2010, as well as a revised map drawn by the Legislature last year, and ordered lawmakers to come up with a new map by Oct. 17.

     

    Justice Barbara Pariente, writing for the majority, affirmed a lower court’s “factual findings and ultimate determination that the redistricting process and resulting map were ‘taint[ed]’ by unconstitutional intent to favor the Republican Party and incumbents.”

     

    But the high court reversed the trial court’s approval of a revised redistricting plan completed last August by the Legislature because it “failed to give the proper effect to its finding of unconstitutional intent, which mandated a more meaningful remedy commensurate with the constitutional violations it found.” The court also concluded, however, that the plaintiffs had only shown enough evidence to support revising eight of the state’s congressional districts and others “affected by the redrawing” but not the entire map.

     

    Legislators seemed to be at a loss about what to do.

     

    “I thought the court decision was wrong, but it’s valid and we have to comply,” said Rep. Richard Corcoran (R), who directed the House’s August congressional district rewrite. “The last map we drew had bipartisan support in both houses. This decision was disappointing.”

     

    But redistricting experts say legislators have very few options and very little time.

     

    “Whatever procedure the state Legislature is going to adopt, they need to do it right now,” said Michael McDonald, an associate professor of political science at the University of Florida. (TAMPA BAY TIMES, MIAMI HERALD)

     

    KS Keeping Some Tax Credits Secret

    According to Kansas’ Department of Revenue, in 2013 the state granted $622 million in income and privilege tax credits, allowing taxpayers to deduct various qualifying expenses from their taxes. But the state actually spent more than that amount on the credits. How much more - or even who all of the tax breaks went to - isn’t publicly available, however, because a longstanding Department of Revenue policy prevents the agency from disclosing the value of credits granted to fewer than five filers.

     

    “The rationale is that by law, taxpayer data is confidential. ... When we are dealing with taxpayer data for 5 or fewer taxpayers, there is a risk that disclosure of this data may in fact reveal confidential data concerning one or more taxpayers within that group,” said Jeannine Koranda, a spokeswoman for the agency.

     

    She added that even revealing the aggregate total for the 31 credits granted to five or less taxpayers in 2013 would violate the agency’s policy.

     

    Kansas Rep. Brandon Whipple (D), a member of the House Tax Committee, said that although the agency’s policy is based on a state law authorizing the agency to release tax information but barring it from releasing information about individual taxpayers, the agency’s “less than five” restriction seemed arbitrary to him.

     

    “It sounds like their interpretation is the most extreme possible where they’re pretty much saying we don’t even want to acknowledge it’s there.”

     

    Senate Vice President Jeff King (R), meanwhile, said keeping the tax information confidential has impeded the work of lawmakers seeking in recent years to reduce the overall tax rate by cutting or eliminating individual credits and exemptions.

     

    “It’s very hard to do that effectively if there are certain tax credits we don’t even know what we’re spending on,” he said. “So as a member of the Senate, I am certainly interested in knowing all of the money we’re spending on tax credits....” (WICHITA EAGLE)

    Minority of States Prepared for Climate Change

     Only 14 states have formal statewide plans in place for dealing with climate change, according to the Georgetown Climate Center. Of those states, California is the furthest along in implementing its plan, having completed 48 of that plan’s 345 stated goals, including investing in more research into rising sea levels. New York, having accomplished 17 of its 121 goals, has the same achievement rate, at 14 percent. Adaptation plans are also in the works in eight states and the District of Columbia.

     

     

    Source: Georgetown Climate Center, Mother Jones

     

    Legend:

     

    Statewide climate change adaptation plans in place: California, Massachusetts, New York, Washington, Colorado, Oregon, Maryland, Maine, Connecticut, New Hampshire, Pennsylvania, Virginia, Alaska, Florida

     

    Climate change adaptation plans in development: Delaware, Hawaii, Michigan, Minnesota, New Jersey, Rhode Island, Vermont, Wisconsin

     

     

    California, Hawaii Lead Way on Climate Change Targets

     Prodded by the Environmental Protection Agency (EPA) and led by California and Hawaii, states are tackling climate change and promoting renewable energy. But the fossil fuel industry and skeptical Republicans are pushing back.

     

    Hawaii last month became the first state to establish a goal of relying 100 percent on renewable energy, setting 2045 as the year to reach this ambitious target. Meanwhile, legislation moved forward in California that would significantly expand its pioneering efforts to reduce greenhouse gas emissions and combat climate change. The Golden State has an economy larger than all but six nations in the world, and almost anything it does has the potential of having global impact.

     

    “The eyes of the world are on California,” asserts State Senate President Pro Tem Kevin de Leon (D). He is the author of a bill [SB 350] that would require the state to generate 50 percent of electricity from renewable sources such as solar and wind power, halve the amount of petroleum used by vehicles and double energy efficiency of buildings by 2030. The bill is part of an environmental package making its way through California’s Democratic-controlled legislature over Republican opposition. Gov. Jerry Brown (D), outspoken on climate change, is likely to sign these measures if they reach his desk.

     

    Six other states – Connecticut, Maryland, Massachusetts, Minnesota, New Jersey and Washington – have mandated reductions in fossil fuels to meet climate-change goals. Twenty-nine states have laws designed to increase renewable energy usage. Vermont’s is notable: it requires that 55 percent of a utility’s electricity come from renewables, including large-scale hydro power, by 2017. The target increases to 75 percent by 2032.

     

    Presently, fossil fuels supply 85 percent of the nation’s energy. In several states momentum toward greater use of renewables has been stopped or slowed by the opposition of power companies and the American Legislative Exchange Council (ALEC) a corporate-funded policy group that provides like-minded legislators with “model bills” favoring fossil fuels.

     

    Last February the Republican-controlled legislature in West Virginia repealed a mandate requiring that 25 percent of its energy be obtained from renewable or alternative sources such as natural gas by 2025. Last month Kansas made its previous mandate for 20 percent use of renewables by 2020 a voluntary goal. In 2014 Ohio froze its renewable energy targets while Florida cut its energy-efficiency goals by more than 90 percent.

     

    But all states may become involved in the climate change battle when a pending EPA regulation is issued, said Glen Andersen, director of energy programs for the National Conference of State Legislatures. The regulation, known as the Clear Power Plan, is President Obama’s proposal to assign each state a level to which it must reduce carbon emissions from electric power plants, a culprit in global warming. The plan could become a burden for states that rely on coal-fired power plants. Twenty-six states obtain most of their energy from coal, with the highest users being Texas, Ohio, Pennsylvania, Indiana, Kentucky and West Virginia.

     

    The Clean Power Plan is the major element of Obama’s effort to make a difference on climate change through executive action. Republican congressional leaders charge he is exceeding his constitutional authority and infringing on legislative powers. In February, Senate Majority Leader Mitch McConnell (R-Kentucky) sent letters to all state governors urging them to refuse to carry out the EPA rule when it is implemented in August. While most states have ignored McConnell, five Republican governors have said they may honor his request. They are presidential aspirants Scott Walker of Wisconsin and Bobby Jindal of Louisiana plus three governors from heavy coal-using states: Greg Abbott of Texas, Mike Pence of Indiana and Mary Fallin of Oklahoma. Meanwhile, the Republican-controlled House of Representatives has passed a bill that would allow each state to decide if it wants to abide by the regulation. It faces an Obama veto if it clears the Senate.

     

    Obama maintains that he has broad authority to act under the Clean Air Act, a comprehensive federal law regulating air emissions and authorizing the EPA to establish national standards to protect public health. Put forward in 1963 by President Lyndon Johnson, it passed by bipartisan vote. In 1970, Congress approved President Richard Nixon’s proposal creating the EPA. The Clean Air Act was strengthened and the EPA given most of the powers it possesses today. Congress approved the changes with only a single dissenting vote.

     

    That was then. In today’s politicized environment, global warming is a partisan issue. Dealing with climate change is a priority for Obama and many Democratic governors and legislators, especially on the coasts. Republican attitudes range from ambivalence to hostility; many question the scientific consensus that global warming is a growing peril.

     

    Gallup’s annual Environment Survey highlights the partisan division. It shows that 52 percent of voters who lean Democratic consider global warming and climate change a major problem; only 13 percent of Republican-leaning voters agree. A Pew Research survey found that nearly two-thirds of voters believe the planet is getting warmer, but neither the Pew nor the Gallup respondents assigned much urgency to corrective action. These findings suggest that Congress has little to fear in the way of voter retaliation for its resistance to climate-change legislation.

     

    The impasse between a chief executive who favors action on climate change and a resistant Congress could continue beyond the Obama presidency. Helped by favorable 20ll redistrictings, Republicans appear to be in position to control the House of Representatives into the next decade. In this context, state actions matter. When the federal government – including President Obama – was opposed to same-sex marriage, state actions made such unions legal and paved the way for the historic ruling last month by the Supreme Court declaring marriage equality a constitutional right.

     

    Even small states can set an example, and Hawaii’s establishment of a 100 percent renewable energy goal could have “aspirational” value for other states, said Vicki Arroyo, executive director of the Georgetown Climate Center. For Hawaii itself, developing renewable energy is practical economics. The oil-dependent Aloha State has solar, wind, wave and geothermal resources but lacks fossil fuels. In signing the bill, Gov. David Ige (D) said Hawaii spends about $5 billion annually on foreign oil. “Making the transition to renewable, indigenous resources for power generation will allow us to keep more of that money at home, thereby improving our economy, environment and energy security,” he said.

     

    But it is the pending California legislation that could have the greatest impact on other states – and perhaps other countries as well. California has long been a trend-setter on environmental issues. In 1974, legislation authored by a conservative Republican assemblyman and supported by Gov. Ronald Reagan gave the California Air Resources Board power to prohibit sale or registration of vehicles that failed to meet the state’s strict standards on emissions control. The U.S. auto industry, which had opposed the bill, capitulated and made all its cars meet the California standards.

     


    Later, California became a national pacesetter on greenhouse gas emissions, a role it’s now expanding. In April, Gov. Brown issued an executive order calling for reduction of pollutants in California to 40 percent below 1990 levels by 2040 and to 80 percent below these levels by 2050, matching the standards of the European Community.

     

    How important are such actions? Fred Krupp, president of the Environmental Defense Fund, said at the Aspen Ideas Festival, that state measures and Obama’s Clean Power Plan initiative had broken a stalemate with China, which suffers ominously from air pollution. Last November Obama reached an agreement with Chinese President Xi Jinping in which the United States promised to cut carbon emissions by one-fourth through 2025 and China pledged to reach peak emissions by 2035.

     

    These are at best starting points, but they could be useful. Air pollution does not respect state boundaries, and climate change is a global phenomenon. As important as California’s actions are, says Sen. de Leon, they will not make a significant dent in global warming unless other states, the federal government, and the international community also take action.

     

    Vicki Arroyo believes a tipping point could be near. She points out that polls show younger people are more concerned about global warming than their elders – and more convinced that something can be done. Public opinion changed rapidly in defiance of conventional wisdom on issues ranging from same-sex marriage to removal of the Confederate flag, Arroyo observes. Many national leaders and Pope Francis have warned of looming climate catastrophes unless something is done about global warming. Is climate change an issue whose time has come?

     

    - By Lou Cannon

    Cut As We Say, Not As We Do

    When times get tough, everyone has to just suck it up, tighten their belt and make due with less. Or so numerous state agencies in Oklahoma were told during this year’s epic effort to close a $611 million budget gap. But when Gov. Mary Fallin recently inked her name to the final $7.1 billion spending plan, lo and behold guess who didn’t see any less money at all? Yep – lawmakers! Yep, as the Oklahoma City CBS TV news affiliate News 9 reports, the state House and Senate didn’t get one dime less than last year. Meanwhile, 49 of the 71 state agencies got cuts, 13 got increases and the rest also remained flat. Glad to see Sooner pols have their priorities as straight as ever. 

    A Prime Example of Monitoring Media for Tracking Competitors and Assessing Customer Sentiment

    The consumer world just experienced its first ever “Prime Day,” so named because Amazon® Prime members enjoyed the equivalent of that post-turkey dinner retail extravaganza known as Black Friday. Did the event live up to the hype? Determined to track the event as it happened, we set up some searches in LexisNexis® Newsdesk, conducted some reconnaissance on our favorite social media sites, and visited Amazon.com once or twice—just to be thorough, of course. What did our media monitoring efforts reveal?

    Broadcast Media Led the Buzz before the Event

    Leading up to Prime Day, Amazon was ahead of its retail competitors in terms of visibility across all types of media, but especially broadcast. 

    Media Coverage (7/6 - 7/14)

    Competitors Tried to Capitalize on the Prime Day Buzz

    While rival Walmart® threw down the gauntlet—and received a boost in mentions for its efforts, other retailers’ attempts to turn mid-July into a bargain shopping paradise didn’t earn much media attention, despite the fact that some have been doing it for years. Walmart, however, was frequently singled out, with USA Today claiming that “The Walmart vs. Amazon fight for retail domination just escalated.”

    Amazon's Competition Mentioned in Prime Day Articles (7/6 - 7/16)

    During the Event the Chatter Was High, but Sentiment was Low

    If you watched the Twittersphere for #PrimeDay mentions or checked your social media feed to see what the buzz was, you couldn’t miss the shift in sentiment from excitement at the expected deals on HD TVs and other cool gadgets to scathing, yet funny comments on the unexpected collection of items included in the Prime Day sales. In a follow-up article, USA Today likened the odd-ball assortment of items ranging from extra-long shoehorns to seatbelt extenders to “… items laid out for a grandma-died, got-a-divorce, getting-rid-of-stuff-you-bought-online-while-drunk-but-definitely-never-needed garage sale down the street.”

    Media Monitoring Improves Agility

    Despite the disappointment expressed by shoppers on their social media feeds, post-Prime Day analysis indicates that Amazon is still experiencing media attention from the buzz the sale generated, and ultimately, Amazon learned a lot about its Prime members for future sales events.  Following up on the Prime Day buzz, the Chicago Tribune reported that orders exceeded Black Friday’s and more than 28,000 Rubbermaid sets sold in 15 minutes. No word on how many extra-long shoe horns are shipping today, but there’s always next Prime Day if you missed out.  

    Amazon Prime Day Coverage Over Time

    The bottom line? Monitoring media and leveraging near-real time analytics to assess sentiment allows organizations to respond rapidly to demands, improve your marketing and make faster, smarter business decisions. And that is a prime deal!

    3 Ways to Apply This Information Now

    1. Read our white paper on how to make use of all the data that’s available in today’s media-rich business world.
    2. Check out the LexisNexis Newsdesk video overview to learn more about this powerful media- monitoring and analytics solution.
    3. Share this blog on LinkedIn to keep the dialogue going with your colleagues and contacts. 

    LePage, Lawmakers In New Dispute

    The ongoing battle of wills between Maine lawmakers and Gov. Paul LePage (R) took another strange twist last week as the two sides reached an impasse over 71 bills awaiting gubernatorial action. Lawmakers contend that the 10-day period for LePage to act on those measures has passed, meaning they are now law. LePage counters that lawmakers adjourned on June 30, which negates the 10-day limit. The issue appears most likely to be headed to the state Supreme Court.

     

    At issue is how each side defines adjournment. Nobody disputes that lawmakers adjourned on the 30th. But they contend it was only a recess, with every intention for them to return shortly to deal with what was anticipated to be another veto override session after LePage vetoed the 71 measures. But LePage claims it was an official adjournment, meaning he is under no time constraints to address the bills.

     

    State Attorney General Janet Mills (D) has sided with lawmakers, saying all of the precedents cited by LePage’s chief legal counsel Cynthia Montgomery have adjourned “sine die,” which lawmakers in this case clearly did not do.

     

    “The Legislature recessed with the clear intention of returning July 16, so the governor had 10 days to act on the legislation presented to him,” Mills told Maine Public Radio.

     

    Meanwhile, LePage says he will pose the question to the state Supreme Court, though just when is now unclear. As of Last Tuesday, he indicated the paperwork was being prepared for immediate submission to the court. But later that day he said he might wait until January to do so.

     

    But LePage shifted gears again on Thursday, sending vetoes of 65 of the 71 measures to the House and Senate. He urged lawmakers to consider them right away, saying “I hope you will vote to sustain all of these vetoes at your earliest opportunity.”

     

    That seems highly unlikely. House Speaker Mark Eves (D) flat out rejected the request, saying the bills are now law and “you can’t veto a law.” Senate President Michael Thibodeau (R) had no comment, but Senate Secretary Heather Priest said the vetoed bills would not be considered, all but assuring that the matter will be decided by the state Supreme Court. (BANGOR DAILY NEWS, MAINE PUBLIC BROADCASTING NETWORK, PORTLAND PRESS HERALD)

    And Then There Is This

    Speaking of Oklahoma, The state GOP is still picking bits of its giant foot from between its own teeth after likening food stamp recipients to animals last week. As News 9 also reports, the state GOP took to Facebook to compare an announcement that the U.S. Department Of Food and Agriculture’s food stamp program is now reaching a record 46 million people to a National Parks Service advisory warning people not to feed wild animals because said critterswill grow dependent on handouts and will not learn to take care of themselves.” After the joke went over like a screen door on a submarine – drawing condemnation even from conservatives, who thought it was tasteless and tacky - party chairman Randy Brogdon beat feet to take the post down and issue an apology. Of course, he did so only with the caveat that his comments were “misinterpreted.” Right... 

    Voting Rights Case Begins In IL

    A federal trial opened last week in North Carolina that will decide whether sweeping election law changes made by the state’s Republican-dominated Legislature in 2013 - after the U.S. Supreme Court ended the requirement that North Carolina and eight other states get federal preapproval before changing their election laws - discriminate against black voters.

     

    The changes, which include a reduction in the number of early voting days and the elimination of same-day voter registration may be a far cry from the violent intimidation tactics of the 1960s, but the trial is still stirring up old emotions.

     

    “This is our Selma,” said William Barber II, president of the North Carolina NAACP, which brought the lawsuit in conjunction with the League of Women Voters, the Justice Department and others.

     

    The plaintiffs contend that the discriminatory effect of North Carolina’s election law changes was so clearly intentional that the state should be subject to preapproval again.

     

    North Carolina AG Roy Cooper countered in a pretrial brief that the plaintiffs are seeking “the equivalent of election law affirmative action” or “practices that are favored by political organizations dedicated to maximizing Democratic turnout.” (CHARLOTTE OBSERVER)

    U.S. House Passes Transportation Aid Extension

    The Republican-led U.S. House passed a bill last week that would prevent a looming suspension of federal highway funding to states. The bill would provide an $8 billion infusion to the federal Highway Trust Fund, enough to keep money flowing for state roads and highways through mid-December.

     

    The White House welcomed the proposal, issuing a statement saying "the unfortunate reality is that, due to inaction," Congress needed more time to pass a longer-term transportation bill. But Congress has been trying to do that for six years, managing to approve only 34 short-term transportation funding extensions in that time instead.

     

    The main sticking point has been that the chief revenue source for transportation funding, the federal gas tax, has been dwindling as automobiles have become more fuel efficient. And most lawmakers are reluctant to raise that tax. In fact it hasn’t been increased since 1993.

     

    But the U.S. Senate’s Republican majority is working on a long-term solution that relies more on cost savings, including $31 billion over the next decade from reducing the rate of return on an investment account available to federal retirees and $17 billion from reducing the dividend the Federal Reserve pays to member banks.

     

    The Republicans will have to reach an agreement on the issue quickly, with the U.S. Transportation Department’s authority to process payments to states expiring on July 31. (ASSOCIATED PRESS)

     

    McCrory Creates Mental Health Task Force

    North Carolina Gov. Pat McCrory (R) issued Executive Order No. 76 last week, which will create a multi-agency task force aimed at finding better ways to treat people with mental health or substance abuse issues. The North Carolina Mental Health and Substance Use Task Force will have 24, with members from all three branches of Tar Heel State government, including lawmakers and state Supreme Court Chief Justice Mark Martin and Department of Health and Human Services Secretary Aldona Wos. The group’s main objective will be to craft early treatment and intervention options that help keep people out of jail and the court system.

     

    In a statement, McCrory said improving collaboration between the three branches of government will allow the state to improve its treatment of people who struggle with mental health and drug abuse issues without having to come up with new money to pay for it. 

     

    “If we improve these linkages, we offer the best hand up to those in need – especially our young people,” he said.

     

    The task force is expected to submit its recommendations in May, 2016. (ABC11.COM [RALEIGH], WRAL.COM [RALEIGH], NORTH CAROLINA GOVERNOR’S OFFICE)

     

    Politics In Brief - July 20 2015


    MO Signs Reform Bill

    MISSOURI Gov. Jay Nixon (D) signed a broad municipal court reform bill aimed at ending what the bill’s sponsor has called predatory practices targeted at the poor. Among other things, the bill limits fines and bans jail sentences for most minor traffic offenses (ST LOUIS POST-DISPATCH, LEXISNEXIS STATE NET).

    PA Vetoes Pension Overhaul

    PENNSYLVANIA Gov. Tom Wolf (D) has vetoed a Republican-backed overhaul of the state’s public pensions. The plan, SB 1, would have placed future employees in a 401(k)-style retirement plan instead of the state’s traditional defined-benefit pension plan (PITTSBURGH POST-GAZETTE).

     

    - Compiled by KOREY CLARK

     

    This Is What You Call Hoodwinked

    Yay, Ku Klux Klan! Wait, what? Yes, you read that right. As the Nashville Tennessean reports, while many in the South are trying to figure out how to respectfully manage their Confederate history, the Volunteer State recently marked another “Nathan Bedford Forrest Day.” In case you missed Forrest Gump, Bedford Forrest was a Confederate general who also was a noted slave trader and noted leader in the Ku Klux Klan. While current Gov. Bill Haslam (R) said he wasn’t fond of doing it, state law left him no choice but to sign the proclamation. Perhaps, which can only mean it’s now up to lawmakers to change the law. Right?

     

     

    - By RICH EHISEN

     

    MD Launches Commission to Review Regulations

    Maryland Gov. Larry Hogan (R) announced the launch of a new commission to determine which state regulations are making it hard to do business in the state.

     

    “For years, over-burdensome and out-of-control regulations were making it impossible for businesses to stay in Maryland, the governor said.

     

    Hogan has tasked the all-volunteer, 10-member commission with spending the next three years examining every rule on the books and conducting hearings throughout the state to uncover how those rules impact “our primary mission of retaining, growing, and creating more businesses and jobs.”

     

    But Democrats who control the state’s General Assembly said they’re way ahead of Hogan on the issue, having already passed legislation creating a commission that provided recommendations this year on how to promote economic development.

     

    “Larry Hogan should have known by now what the problems are and shouldn’t have needed three years to study the problem,” said Del. C. William Frick (D). (WASHINGTON POST, LEXISNEXIS STATE NET)

     

    Budgets In Brief - July 20 2015

    Democrats who control the ILLINOIS General Assembly failed to completely override Gov. Bruce Rauner's (R) vetoes of a new state budget last week. The state has been without a budget since the start of the new fiscal year on July 1 (CHICAGO TRIBUNE). * VIRGINIA Gov. Terry McAuliffe (D) announced a $553 million revenue surplus last week. The news comes less than a year after he announced a $2.4 billion projected budget shortfall, prompting government worker layoffs and a markup in the price of liquor (WASHINGTON POST). * The day before launching his presidential campaign, WISCONSIN Gov. Scott Walker (R) signed a two-year, $72.7 billion state budget, from which he vetoed 104 items (MILWAUKEE JOURNAL-SENTINEL). * OHIO added $526 million to its rainy day fund, raising its total balance to $2 billion (CLEVELAND.COM).

     

    -- Compiled by KOREY CLARK

    Governors In Brief - July 20 2015

    Investigation Into Planned Parenthood

    At least four Republican governors have ordered state health officials to investigate the operations of Planned Parenthood clinics in their states after a video surreptitiously captured by an anti-abortion group surfaced showing a PP executive discussing the selling of body parts from aborted fetuses. Governors in GEORGIA, TEXAS, INDIANA and LOUISIANA ordered the investigations. Planned Parenthood claims the video has been misconstrued (LEXISNEXIS STATE NET).

    FL Increases Disabled Trust Fund Cap

    FLORIDA Gov. Rick Scott (R) signs legislation that allows Sunshine State residents with disabilities to establish trust funds up to $100,000 without jeopardizing their state and federal benefits. The law previously capped the dollar amount at $2,000 (MIAMI HERALD).

    MA Supports of Charters

    MASSACHUSETTS Gov. Charlie Baker (R) said he would support a proposed ballot measure to raise the cap on charter schools in the Bay State. Baker said he would prefer to see lawmakers raise the cap through the legislature, but would campaign in favor of an initiative if it gets to the ballot (BOSTON GLOBE). * 

     

    -- Compiled by RICH EHISEN

    Crime & Law Enforcement - July 20 2015

    OR Signs HB 2002

    Gov. Kate Brown (D) signs HB 2002, which creates a system for citizens to report incidents of possible police profiling and requires law enforcement agencies to pass formal profiling bans by Jan. 1 of next year (PORTLAND OREGONIAN).

    CA Signs AB 418

    CALIFORNIA Gov. Jerry Brown signs AB 418, which makes permanent a law that allows domestic violence victims to break a lease to move to safer housing. The law was set to expire at the end of this year. Under the new law, victims also have the option of obtaining a written statement from a qualified advocate or counselor without going through the judicial system or police (LEXISNEXIS STATE NET, SANTA CRUZ PATCH).

    CA Approves SB 227

    The CALIFORNIA Assembly approves SB 227, which would bar the use of secret grand juries to consider incidents of excessive or deadly force by police officers. It moves to Gov. Brown for consideration (LOS ANGELES TIMES).

    RI Signs SB 669

    RHODE ISLAND Gov. Gina Raimondo (D) signs SB 669, which requires Ocean State police departments to collect data on race at traffic stops and requires all of them to submit an annual report to the Department of Transportation’s Office of Highway Safety on actions taken to address “any documented racial disparities in traffic stops and searches” (PROVIDENCE JOURNAL).

     

    Education - July 20 2015

    CA Approves SB 200

    The CALIFORNIA Assembly unanimously approves SB 200, which would allow the children of live-in working parents to attend school in the district where those parents work. It moves to Gov. Jerry Brown (D) for consideration (LEXISNEXIS STATE NET).

    AK Signs HB 44

    ALASKA Gov. Bill Walker (I) signs HB 44, which requires school districts to implement a training program that teaches staff to recognize signs of sexual abuse and educates students about dating violence and other forms of abuse (ANCHORAGE DAILY NEWS).

    HI to Veto HB 553

    HAWAII Gov. David Ige (D) announces he will veto HB 553, which would have granted collective bargaining rights to graduate assistants (KHON.COM [HONLULU]).

    DE Vetoes HB 50

    DELAWARE Gov. Jack Markell (D) vetoes HB 50, which would have allowed parents to opt their children out of state and district assessment testing. Gov. Markell also signed SJR 2, which requires state education officials to inventory all current assessment tests to determine which might be phased out (DELAWARE GOVERNOR’S OFFICE).

    Environment - July 20 2015

    CALIFORNIA Gov. Jerry Brown (D) signs AB 1, which bars local governments from fining residents who let their lawns die or go brown during the state’s historic drought (LEXISNEXIS STATE NET). 

    Health & Science - July 20 2015

    NC Approves HB 766

    The NORTH CAROLINA House gives final approval to HB 766, a bill that would allow the use of cannabis oil in treating children who suffer from seizure disorders like epilepsy. It moves to Gov. Pat McCrory (R), who is expected to sign it into law (WBTV.COM [CHARLOTTE]).

    CO Against Med Marijuana Treatment for PTSD

    The COLORADO Board of Health votes against adding post-traumatic stress disorder to the illnesses which can be legally treated with medicinal marijuana. Nine other states allow PTSD patients to be treated with marijuana (DENVER POST).

    HI Signs HB 321

    HAWAII Gov. David Ige (D) signs HB 321, which authorizes eight medical marijuana dispensaries in the Aloha State. The measure also bars local municipalities from barring dispensaries in their jurisdictions (MAUINOW.COM).