NEW YORK Gov. Andrew Cuomo (D) signs AB 6823, which relieves Empire State prosecutors from having to prove force, fraud or coercion was used to involve a minor in prostitution. (NEW YORK POST)
A trio of closely watched redistricting cases were dispatched by the Supreme Court last month on technical grounds rather than on the merits of their arguments.
In one of the cases, Gill v. Whitford, from Wisconsin, the justices unanimously ruled that the plaintiffs lacked the standing to sue because they’d failed to show they had suffered direct injury from the Assembly district map drawn by the state’s Republican-controlled Legislature in 2010. In another case, Benisek v. Lamone, from Maryland, the court ruled, again unanimously, that the plaintiffs had waited too long to seek an injunction against the congressional district drawn by that state’s Democrat-led General Assembly in 2011. And a week later, the justices remanded a case from North Carolina, Rucho v. Common Cause, to a trial court for further consideration of whether the plaintiffs in that case had the standing to sue.
The three cases were seen as opportunities for the court to decide whether there’s a constitutional limit to partisan gerrymandering. In a concurring opinion he wrote in 2004, Justice Anthony Kennedy said he might consider allowing challenges to voting maps if “a workable standard” existed for determining when they crossed over a constitutional line. (NEW YORK TIMES, WASHINGTON POST, SUPREMECOURT.GOV, CORNELL.EDU)
The DENVER City Council unanimously votes to ban so-called gay conversion therapy, which seeks to change a minor’s sexual orientation. Denver becomes the first city in COLORADO to enact such a ban (GAZETTE [COLORADO SPRONGS]).
The SAN DIEGO City Council votes to finalize a ban on polystyrene food and beverage containers, which have been blamed for poisoning fish and other marine life and damaging the health of people who eat seafood.
The city becomes the 120th CALIFORNIA municipality to ban the plastics (SAN DIEGO UNION TRIBUNE).
The VIRGINIA House and Senate each pass measures that would make it illegal for drivers to talk on a cellphone without using a hands-free device. Those measures, HB 1811 and SB 1341, pass now to the opposite chambers for consideration (DELMARVA DAILY TIMES, LEXISNEXIS STATE NET).
Editor: Rich Ehisen Associate Editor: Korey Clark Contributing Editor: Mary Peck, David Giusti Editorial Advisor: Lou Cannon Correspondents: Richard Cox (CA), Lauren Davis (MA), Steve Karas (CA) and Ben Livingood (PA), Cathy Santsche (CA), Dena Blodgett (CA) Graphic Design: Vanessa Perez Design
Although motor vehicle subscription services - similar to auto leases but with no long-term commitment, the ability to change vehicles periodically and insurance and maintenance bundled in - have only been around for a few years, they’ve been embraced by some automakers, insurers and consumers. But the services face potential roadblocks from state lawmakers and regulators that could keep “subscribing” for a car from becoming as commonplace as “buying” or “leasing” one.
Vehicle subscription services have existed since at least 2014, when Cox Automotive, the Atlanta-based auto auction, financial services and media company that owns Autotrader and Kelley Blue Book, launched Flexdrive, allowing consumers in select cities to obtain a recent model vehicle on a weekly basis via an app. In the years since then, auto manufacturers, dealerships and other providers have started their own subscription services, and there’s now a multitude to choose from, including Care by Volvo, Porsche Passport, Hertz My Car, and Canvas, initiated by Ford but recently acquired by competitor Fair.
Some automakers got off to a rough start with their subscription services, but others appear to be pretty enthusiastic about them. Porsche recently expanded the service it piloted in Atlanta two years ago to four new cities: Las Vegas, Phoenix, San Diego and Toronto. And despite the fact that the $2,100-per-month lower tier of that service, Porsche Passport, is about 20 percent more expensive than leasing a Porsche for three years, 180 people have signed up for it, 80 percent of whom had never owned a Porsche before, according to the Insurance Journal.
“If you engage 80 percent new people that have not engaged with your brand before, that’s certainly worth a lot,” said Klaus Zellmer, president and CEO of Porsche Cars North America.
Automakers like Porsche view subscription services as a way of appealing to a younger demographic used to hailing rides from Uber and streaming movies on Netflix - at a time when U.S. auto sales have plateaued. Passport subscribers, for instance, aren’t locked into a three-year lease, and they’re able to switch car models whenever they want, so they can drive a Panamera sedan during the week and a 911 sports car on the weekend. As Zellmer put it, according to CB Insights: “younger people ‘do not want to engage with a commitment for three years. They want to change their phones; they want to change their TV channels. It’s all about subscriptions.’”
Several insurance companies have also jumped into the market, teaming up with subscription service providers to manage their insurance needs. As of early last year, AAA had partnered with third-party subscription service Gig Car Share; Assurant had partnered with BMW and third-party subscription services Flexdrive, Fair and Carma; Chub ESIS had partnered with Cadillac and General Motors; Hamilton had partnered with Porsche; and Liberty Mutual had partnered with Ford, Volvo and third-party service Turo, according to CB Insights.
A major selling point for insurer MetLife, which joined with Hyundai last year to provide a three-year lease program that included insurance and maintenance, was that it didn’t have to foot the bill for marketing to potential customers for a change.
“There is a lot of marketing and advertising in the insurance industry — it’s one of the most marketed industries across the board,” Kevin Chean, vice president and head of distribution for MetLife Auto & Home, told Auto Finance News. “This program is offered through Hyundai so we’re not offering marketing to promote this program, Hyundai is leveraging their existing marketing program to sell cars and get consumers in the door.”
In addition, because MetLife was able to offer the programs’ subscribers - a low-risk population of Hyundai customers who qualified for a lease - a fixed three-year rate, the usual underwriting process wasn’t required for each of them, cutting down on labor and paperwork costs.
Auto dealers haven’t been as receptive to subscription services. They’re concerned that they’ll be left out of the new business stream being created by the services and end up having to compete with automakers.
Matthew Haiken, chairman of Volvo’s Retail Advisory Board and a principal at two New Jersey Volvo dealerships, told Automotive News last year that some automakers were only paying dealers $250 to $500 to deliver subscription vehicles, which often require more work than standard deliveries.
“What happens down the road if this takes off and you try to cut our margin, or you try to cut us out completely?” he told Volvo executive management. “We need to be able to protect our margins based on the expense structure that we have in the dealership.”
Dealer concerns contributed to Indiana lawmakers’ decision last year to impose a moratorium on vehicle subscription programs in the state until May 1, 2019 [HB 1195 (2018)].
Language that would have allowed automakers to offer subscription programs only through their dealer networks was also added to a broader dealer franchise bill introduced last year in California, AB 2107 (2017). The provision was later stripped out of the bill after the Alliance of Automobile Manufacturers, which represents a dozen automakers, including Volvo, and the California New Car Dealers Association, which represents 1,300 franchised new car dealers in the state, agreed to talk the matter over further, Brian Maas, president of the California dealer association, told Automotive News. He also said new legislation addressing subscription programs could come as soon as 2019.
So far this year only four states - Indiana, Massachusetts, New Jersey and North Carolina - have introduced bills dealing specifically with vehicle subscriptions, although two of those states enacted measures, according to LexisNexis State Net’s legislative tracking system. Indiana passed HB 1237, extending its ban on vehicle subscription programs to May 1, 2020. And North Carolina enacted SB 557, reducing the alternate highway tax on vehicle subscriptions.
Legislation is still pending in Massachusetts (HB 262 and SB 179) that would require vehicle subscriptions to be “offered through, or in partnership with” auto dealers. There are also several active bills in New Jersey (AB 5461 and AB 3847/AB 4634/AB 4819/SB 2252/SB 2382) that would provide for special license plates to identify subscription vehicles and establish a plug-in electric vehicle rebate program in part to foster “advanced mobility solutions, including vehicle subscription services, respectively.
And more legislation may be on the way. As Larry Dominique, CEO of French automaker PSA’s North American division told Automotive News last year, “The sense that I’m getting from the legal team is we can expect to see more legislative action on this over the next year or two” in a larger number of states.
At the moment, however, the bigger threat to vehicle subscriptions appears to be California regulators. The state’s Department of Motor Vehicles has launched an investigation of Volvo’s Care program. As NBC News reported, the California New Car Dealers Association says the automaker is using the program to cut franchised dealers out of its sales process, in violation of state franchise laws. The dealer group points out that the Volvo booth at the 2018 Los Angeles Auto Show actually had electronic banners proclaiming “Don’t Buy Our Cars,” and “Subscribe, Don’t Buy.”
“Franchise laws exist to protect dealers from this type of behavior,” said Maas, the group’s president.
The group also argues that Volvo is violating California consumer protection laws by rolling vehicle use, insurance and maintenance into a single payment, a central element not only of Volvo Care but of all vehicle subscription services.
In response to the news of the California DMV’s investigation, Volvo issued a statement saying it was “committed to developing Care by Volvo in collaboration with our retailers to offer the flexibility of subscription side-by-side with traditional lease and financing.” NBC News also reported that the company was taking steps to improve delivery of its subscription vehicles.
It isn’t clear whether those actions will satisfy either California auto dealers or regulators. The future of vehicle subscription services could be riding on the DMV’s report on Care, which is due by mid-February.
“A lot of us thought that subscription programs were going to be the way to buy a car,” Joe Phillippi, president of AutoTrends Consulting, told NBC News.
But he also said if the California DMV finds that Volvo is violating the state’s laws, other providers “are going to think twice” about the subscription business model.
The NEW MEXICO House approves HB 29, which would allow local communities to impose curfews on teenagers under age 16. The measure moves to the Senate (KRQE.COM [ALBUQUERQUE]).
-- Compiled by RICH EHISEN
The MAINE House approves HB 594, which would require Medicaid private insurance companies to pay for abortion services. It moves to the Senate (PORTLAND PRESS HERALD, LEXISNEXIS STATE NET).
GEORGIA Gov. Brian Kemp (R) signs HB 481, which would ban abortions at six weeks of pregnancy. The bill’s supporters made clear the legislation is intended to incite a court challenge that would ultimately be decided by the Supreme Court of the United States (NPR).
The TEXAS Senate approves SB 1033, which would ban abortions on the basis of the sex, race or disability of a fetus, and criminalize doctors who perform what opponents call “discriminatory abortions.” It moves to the House (TEXAS TRIBUNE).
The MAINE House approves HB 755, a bill that would ban the use of so-called “conversion therapy,” which seeks to change a person’s sexual orientation, on minors. The measure moves to the Senate (PORTLAND PRESS-HERALD).
With wildfires burning the state down amidst the usual end-of-session jamming through bills that really ought to have had a lot more deliberation, California lawmakers can point to at least one epic accomplishment: surfing is now the official state sport. That’s right, Gov. Jerry Brown inked his name to a measure that gives riding the waves its due as “an iconic California sport.” At least the bill acknowledges that surfing actually originated in Hawaii, making it like most other things in this state – an import from somewhere else.
-- By RICH EHISEN
A federal judge issues an order barring LOUISIANA from carrying out any executions for at least one more year while litigation over the state’s method of carrying out lethal injection sentences is being challenged in the courts (ASSOCIATED PRESS).
MISSOURI Gov. Mike Parson (R) signs SB 655, which would establish 16 as the minimum age for marriage in the Show Me State, with marriage for those under 18 requiring the approval of at least one parent (KANSAS CITY STAR).
ILLINOIS Gov. Bruce Rauner (R) signs HB 2354, a so-called “red flag” bill that allows family members or police to seek an order of protection to confiscate guns from those deemed “an immediate and present danger” to themselves or others. Rauner also signs SB 3256, which extends the state’s 72-hour waiting period to buy handguns to all firearms (CHICAGO TRIBUNE).
The SAN ANTONIO City Council unanimously approves a six-month pilot program regulating electric scooters. Riders will be required to use sidewalks or roads, but will be barred from roadways where the speed limit is over 35 mph. Scooter companies will also be required to employ a local fleet manager and pay a singular $500 vendor fee and an additional $10 per scooter levy (EXPRESS NEWS [SAN ANTONIO]).
The WASHINGTON state Supreme Court rules the use of capital punishment to be unconstitutional. The ruling, which makes the Evergreen State the 20th where courts or legislatures have abolished or overturned capital punishment, commutes the sentences of the eight men currently on the state’s death row to life in prison (NEW YORK TIMES).
The 5th U.S. Circuit Court of Appeals upholds a LOUISIANA law that requires doctors who perform abortions to have admitting privileges at a local hospital (REUTERS).
CALIFORNIA Gov. Jerry Brown (D) signs AB 2989, which changes state law to require helmets for electric scooter riders only if they are under 18. It takes effect Jan. 1 (CURBED LOS ANGELES).
CALIFORNIA Gov. Jerry Brown (D) signs SB 1108, which makes the Golden State the first to bar work requirements as a condition of Medicaid eligibility (LEXISNEXIS STATE NET).
CALIFORNIA Gov. Jerry Brown (D) vetoes AB 2888, which would have expanded the range of people who can petition the courts for an order removing firearms from those thought to be dangerous to include teachers, college professors, employers and co-workers. Current law allows only family members and law enforcement to see those orders (CALIFORNIA GOVERNOR’S OFFICE).
NEW JERSEY Gov. Chris Christie (R) signs AB 261, which bars the installation and sale of wheel weights containing lead or mercury and prohibits the sale of new motor vehicles equipped with wheel weights containing lead or mercury (NEW JERSEY GOVERNOR’S OFFICE).
The U.S. Immigration and Customs Enforcement agency publishes new rules that allow international students earning degrees in science, technology, engineering and mathematics fields in the United States to be eligible to stay in America for three years of on-the-job training (NEW YORK TIMES).
CALIFORNIA Gov. Jerry Brown (D) signs SB 1139, which bars the denial of applicants to Golden State medical schools based solely on their immigration status. The law also ensures that all medical students are eligible to apply for scholarships, regardless of their citizenship status (LEXISNEXIS STATE NET).
When considering the great problems and injustices facing our world, the lack of availability of a good Mimosa before noon on Sunday is right up there. Or at least it has been for the good people of Georgia, where brunch patrons have just had to make do with coffee or tea at the local café for their Sunday morning chow. But take heart, the times they are a changin’! As Eater Atlanta reports, Gov. Nathan Deal signed a bill last week that allows restaurant liquor sales to start at 11:00 AM on Sundays, a full 90 minutes earlier than the current 12:30 PM. While that’s good news for thirsty diners, waiters are also expected to gain big from the new law. Statistics show that pricey alcohol adds a bunch to the final tab, which is good news to anyone relying on tips to make a living. Cheers!
As part of a plan to address their state’s $2.8 billion budget deficit, members of the Alaska House voted 21-19 in favor of a bill (HB 111) last week that would increase oil production taxes and reduce the state subsidy for new oil drilling.
Rep. Geran Tarr (D), co-chair of the House Resources Committee, said the measure was “one of the four pillars of our fiscal solution,” the others being modest budget cuts, tapping of the Alaska Permanent Fund, and the institution of a state income tax.
It was unclear whether the state’s Senate would approve of HB 111. (JUNEAU EMPIRE, LEXISNEXIS STATE NET)
MASSACHUSETTS Gov. Charlie Baker (R) signs SB 2260, legislation that overturns a number of “antiquated and inappropriate” Bay State laws, including one that made abortion illegal. The measure also strikes down contraception restrictions included in some of those provisions and removes laws punishing adultery and fornication with fines or imprisonment (BOSTON GLOBE).
People not fortunate enough to live here in California often think we’re a freak show. Or an economic disaster. Or trying to steal their water. As a lifer born and bred, I can honestly say the freak show thing can be true, the economic shade is absurd (hello, a $6 BILLION budget surplus) and the water thing is...well hey, we aren’t the only ones. Even so, the most absurd thing in California these days is the ongoing effort by Silicon Valley venture capitalist/irritating gadfly Tim Draper to split the Golden State into smaller nuggets. As the AP reports, Draper actually managed to qualify a ballot measure for this fall that would split the state into three. There’s a million reasons why this is a stupid idea that won’t ever happen, so allow me to offer Draper a better solution to his angst: move. There are 49 other states and a big ol’ world out there. Check one of them out. And then stay there.
If you’re going to have a state amphibian, it might as well be one with as ridiculous a nickname as possible. I’m presuming that was what Pennsylvania lawmakers were thinking recently when they voted to name the Eastern hellbender salamander the official Keystone State amphibian. Alas, as NPR reports, said squishy reptile has a wealth of nicknames, including mud devil, Allegheny alligator, devil dog, lasagna lizard and my personal favorite, the snot otter. The last one is fitting, given the two-foot long salamander is covered head to tail in a film of mucous. Which begs the question: if this opposite-of-handsome critter was the winner, what was the competition like?
Some days it feels like this old world is about to just burn itself down. Literally, given how fast climate change is progressing. But there’s no shortage of other problems, from an epidemic of school shootings to an equally insane epidemic of measles, a disease we once thought eradicated. But don’t ask lawmakers in the Arizona House about any of those woes. As the Arizona Republic reports, the House believes the immediate public health crisis is...wait for it... pornography. Hold your cards and letters, folks. Nobody is saying porn is okie dokie. But hey, a toothless resolution that carries not one single element to reduce the reach or impact of the very evil it proclaims to be so dangerous? While Rome – metaphorically speaking – is burning outside your door? Some might call that kind of thinking the true obscenity.
NEW JERSEY Gov. Phil Murphy (D) signs a trio of transgender rights bills: SB 478, which allows Garden State residents to amend their birth certificate without proof of having undergone a sex-change operation; SB 493, which allows a person's changed gender identity to be reflected on death certificates; and SB 705, which will create a 17-member task force charged with assessing the legal and societal barriers for transgender individuals, particularly in the areas of health care, education, housing and criminal justice (NORTHJERSEY.COM).
The VIRGINIA BEACH, VIRGINIA City Council rejects a proposal to regulate short-term rentals. The Council is expected to reconsider possible regulations and introduce a new proposal (WAVYTV [VIRGINIA BEACH]).
The CASPER, WYOMING City Council unanimously rejects a proposed ordinance that would have allowed city employees to enter private property to conduct inspections; required the upkeep of exterior walls, windows and fences; prohibited peeling paint; and allowed for anyone not in compliance to be charged with a misdemeanor or civil action (CASPER STAR-TRIBUNE.
NEW JERSEY Gov. Phil Murphy (D) signs SB 2534, legislation that bans smoking on Garden State beaches. The prohibition goes into effect early next year and covers all local and state-owned beaches, with violators subject to fines of $250 to $1,000 (NORTHJERSEY.COM)