Do you want to reform the tax system? Channel Dr. Freud.

So you want me to lie down on a couch, tell you about the dream I had last night, and listen to your theories about how I unconsciously hate my father. No, but Freud showed us how feelings and emotions affect our decisions and actions, a point that was not lost on Adam Smith and the other English classical economists.  For example, Smith wrote that every tax “ought to be levied at the same time, or in the same manner, in which it is most likely to be convenient for the contributor to pay it.”

John Stuart Mill also recognized how people’s feelings and emotions could make life hard for tax collectors. “An Englishman dislikes, not much the payment, as the act of paying. He dislikes seeing the face of the tax-collector, and being subject to his peremptory demand.” As University of Exeter economist Dr. Simon James wrote “Mill went on to suggest that if the level of taxation remained the same but indirect taxes were incorporated into direct taxation, ‘an extreme dissatisfaction’ would certainly arise…while men’s minds are so little guided by reason.”
Professor James cited Mills in a technical paper about how behavioral insights could improve tax policy, including making it easier for taxpayers to pay their taxes. The problem, James explained, is that Smith’s and Mill’s insights fell by the wayside as “economics came to replace the old discipline of Political Economy in the twentieth century….” 

Refocusing economics on behavioral science is one of the themes running through Dan Ariely’s popular Predictably Irrational: The Hidden Forces that Shape our Decisions (2009). Being irrational doesn’t mean we’re unpredictable. “Whether we are acting as consumers, businesspeople, or policy makers, understanding how we are predictably irrational provides a starting point for improving our decision making and changing the way we live for the better.”  Here’s a video of Ariely discussing the value of predictable irrationality: 

Smartphones Pit Convenience Against Privacy

While smartphones give users access to location-based applications such as real-time navigation aids, free- or reduced-cost mobile applications, and faster responses in emergencies, how providers use location data is essentially unregulated.  Advocates point out that consumers (1) are generally unaware of how their locations are shared with, and used by, third parties; (2) could be subject to increased surveillance when location data are shared with law enforcement; and (3) could be at higher risk for identity theft or threats to physical safety when companies keep this information for long periods or share it with third parties that do not adequately protect it.

Industry associations and privacy advocates have recommended voluntary guidelines, but their use varies from company to company. 

The General Accountability Office (GAO) looked into this issue recently and recommends that the U.S. Department of Commerce’s National Telecommunications and Information Administration work with industry, consumer, and privacy groups to develop an industry-wide code of conduct.  GAO also urged the FTC to issue guidance on appropriate actions mobile companies should take to protect location data privacy.

Stay on the Job and Stay Insured?

So to keep your health insurance you just postpone retirement and keep working, right? According to a 2012 Health Confidence Survey (HCS), sponsored by EBRI and Mathew Greenwald and Associates, it’s not as easy as it might sound.

More than half of all workers (53%) say they intend to work longer than they would like in order to keep their health insurance at work, according to new research by the nonpartisan Employee Benefit Research Institute (EBRI). However, the actual experience of retirees suggests that may be wishful thinking: Less than one in five (19%) retirees say they were actually able to do so, the EBRI report says.

The HCS also found a growing proportion of older American workers who would retire earlier if they were assured of health coverage: In 2003, 15% of workers reported that they would retire earlier than planned if they were guaranteed access to health insurance, but by 2012, that percentage had nearly doubled (27%).

Hot Report: Assault Weapons Ban and Takings Clause

OLR Report 2013-R-0079 examines how the Fifth Amendment Takings Clause could affect a ban on assault weapons that did not contain a “grandfather” clause (a provision allowing continued ownership of banned weapons by those who legally possess them when the ban takes effect). Please note that the Office of Legislative Research is not authorized to provide legal opinions and this report should not be construed as such.

The “Takings Clause” of the Fifth Amendment to the federal constitution prohibits taking private property “for public use, without just compensation.” This prohibition applies to the states through the 14th Amendment. While the Takings Clause is often discussed in the context of land and real estate, it also applies to personal property. The clause applies to actual confiscations of property as well as to regulatory takings (e.g., laws that deprive a property owner of all beneficial use of the property).

Takings Clause cases can address a variety of issues, such as (1) whether a government action sufficiently infringed upon a property interest to constitute a compensable taking; (2) whether the taking was for public use; and (3) if compensation is required, how to value the property.

We did not find any Connecticut state or federal cases addressing whether a state law banning assault weapons, without grandfathering in current owners, would be considered a taking requiring just compensation. We found cases from other states and other federal circuits concerning Takings Clause challenges to restrictions on the possession, sale, or importation of assault weapons or similar weapons, with or without the grandfathering of current owners.

In all of the cases, the courts decided against the plaintiffs on their takings claims. But it is difficult to answer in general terms how a court would decide a challenge to an assault weapons ban. None of these rulings is binding on Connecticut and the laws at issue in each of these cases varied in several respects that are important to a taking analysis. For example, some of the laws contained a grandfather clause; some contained only temporary bans; and some placed restrictions on the sale of assault weapons but did not ban their sale.

We summarize such cases below, dividing them into two groups depending on who challenged the laws: (1) gun owners or (2) gun dealers, importers, or inventors.

As further noted below, a few of these court opinions included an analysis of the Second Amendment that does not comport with the U.S. Supreme Court's later decisions in D.C. v. Heller, 554 U.S. 570 (2008) and McDonald v. Chicago, 130 S.Ct. 3020 (2010). Generally, these earlier opinions discussed the Second Amendment issue separately from the Takings Clause issue, and it is unclear whether their Second Amendment analyses informed their takings analyses.

For more information, read the full report.

Reducing Municipal Costs by Regionalizing Services

Proponents of regionalism have long argued that municipalities can save money by jointly delivering services.  A recent study by the New England Public Policy Center examines the potential cost savings associated with these efforts.

The study focused on the long-term savings in Connecticut and Massachusetts from regionalizing three specific local services: (1) 9-1-1 operations, (2) public health services, and (3) public pension administration. 

Its findings suggest that Connecticut towns could realize significant long-term savings in these three areas:

1. 9-1-1 Operations: Consolidating 9-1-1 operations by county would cut expenses by about 60% and could potentially improve response times.
2. Public Health Services: Consolidating and restructuring local health departments and the services they provide could cut expenses by 41% and reduce service disparities across the state.
3. Pension Administration: Consolidating local pension plans would cut costs by more than 14%, consolidating state plans would cut costs by about 8%, and combining all plans would reduce costs by about 17%.

 

Supreme Court Declines to Hear Case, Leaving in Place Ban on Direct Corporate Contributions to Candidates

On February 25, 2013 the U.S. Supreme Court denied certiorari in Danielczyk vs. U.S., a case that challenged state and federal laws prohibiting corporations from making direct contributions to political candidates. 

The petitioners in the case, William Danielczyk and Eugene R. Biagi, were Galen Capital officers.  In 2011, the Justice Department indicted them for allegedly using more than $150,000 in corporate funds to reimburse employees for making contributions as “straw donors” to Hillary Clinton’s senatorial and presidential campaigns. (The Clinton campaign was unaware of the activities, according to the government’s brief.) 

Lawyers for Danielczyk challenged one of seven counts in the indictment: that he knowingly contributed corporate money to a candidate.  They argued that these contributions were essentially the same as the indirect contributions that the U.S. Supreme Court authorized in its 2010 Citizen United decision.  (In that case, the Court ruled that corporations and unions have the same First Amendment rights as individuals and may make unlimited independent expenditures, as long as they do not give directly to candidates.  For a summary of Citizens United, see OLR Report 2010-R-0124.) 

In May 2011, U.S. District Judge James Cacheris dismissed that count, saying Citizens United removed the legal underpinnings for the federal ban against direct contributions to candidates.  Later, the U.S. Court of Appeals for the 4th Circuit reversed Cacheris’ ruling.

By denying certiorari, the ban on campaign finance contributions from corporations directly to candidates remains in place.  For more information on Danielczyk, see this article from the Christian Science Monitor, this Reuters article, and this blog entry from SCOTUSblog. 

Hot Report: Effect of Florida's 10-20-Life Law on Violent Crime

OLR Report 2013-R-0146 examines whether Florida's “10-20-Life” law caused a decrease in the state's violent crime rates.

Florida's 10-20-Life law imposes mandatory minimum sentences for certain felony convictions involving the use or attempted use of a firearm (Fla. Stat. § 775.087). Since 1999, when the law took effect, the state's violent crime rates have generally decreased. According to FBI Uniform Crime Reporting (UCR) statistics, the violent crime rate the year the law became effective was 854 (per 100,000 population), compared with 812 (per 100,000 population) one year later. Five years later in 2004, it was 711.8 (per 100,000 population). In 2010, the last year for which FBI UCR data is available, the rate was 542.4 (per 100,000 population).

But it is difficult to determine whether the drop is attributable to the law. We spoke with various public officials in Florida who indicated that other variables may have contributed, directly or indirectly, to the drop including an increase in the number of law enforcement officers, other anticrime strategies, and the governor's warning of the severe penalties for gun crimes. Further, violent crime rates in Florida were trending downward prior to the law's effective date.

Little independent research exists on whether there is a causal relationship between the law and decreasing violent crime rates. However, we found one journal article, written by a criminologist and former University of Florida professor, that attempts to isolate the law's effect through statistical intervention analysis. Dr. Alex Piquero concludes that while it is difficult to determine causality, there is likely not a statistically significant relationship between the intervention (the law) and any decrease in violent crime, including firearms homicides.

For more information, read the full report. For more information on the law's provisions, see OLR Report 2013-R-0067.

EPA Report on Children and the Environment

The U.S. Environmental Protection Agency (EPA) released “America’s Children and the Environment, Third Edition” in January 2013.  The report is a compilation of information from a variety of sources on children’s health and the environment.  According to the EPA news release, the report shows trends for contaminants in air, water, food, and soil that may affect children; concentrations of contaminants in the bodies of children and women of child-bearing age; and childhood illnesses and health conditions.

The report shows improvements on some issues, including children’s blood lead levels and exposure to tobacco smoke in the home.  Key findings include the:

• median concentration of lead in the blood of children between the ages of 1 and 5 years was 92% lower in 2009-2010 compared to 1976-1980 levels,


• median level of cotinine (a marker of exposure to environmental tobacco smoke) measured in blood of nonsmoking children ages 3 to 17 years was 88% lower in 2009-2010 than it was in 1988–1991, and


• percentage of children living in counties where pollutant concentrations were above the levels of one or more national air quality standards declined from 75% to 59% from 1999 to 2009.

Changes in Teen Attitudes Concerning Marijuana Risks

Recent survey findings show that teenagers’ perceptions about the risk of marijuana use are changing, as fewer believe the drug is harmful.  The results are from the National Institute on Drug Abuse annual survey of teen drug use, as reported in the February 6 edition of the Journal of the American Medical Association (JAMA) (page 429).

According to the survey, 41.7% of eighth graders believe that occasional marijuana use is harmful, while 66.9% believe regular use is harmful.  These are the lowest levels since the study began tracking eighth graders on these questions in 1991.

About twenty-one percent (20.6%) of twelfth graders believe that occasional marijuana use is harmful, while 44.1% believe regular use is harmful.  These are the lowest levels among this age group since 1979.

The article also describes survey results for teen use of marijuana and other drugs.  For example, 6.5% of teens reported daily marijuana use in 2012, compared with 5.1% five years ago.  

JAMA is available in the legislative library.

The “Bad-Road Defense” to Negligent Operation

Image Source: Vermont Public Radio (http://www.vpr.net/news

_detail/93786/stuck-in-mud-how-are-roads-your-town/, last accessed

February 6, 2013).

In a unanimous decision, the Vermont Supreme Court recently provided motorists with the freedom to drive on the state’s rough roads without fear of being arrested for negligent operation of a motor vehicle.

Sound strange? Well, as summarized in the Burlington Free Press, the question arose when a motorist was arrested for negligent operation and prosecutors claimed that the sheriff’s deputy had probable cause to arrest him because of his “negligent operation” in driving over a washed-out portion of dirt road.

The sheriff’s deputy originally spotted the motorist driving 65mph in a 55mph zone and then followed him down an unpaved private driveway. The motorist then drove at about 25mph over a washed-out section of the road and bottomed-out his car. This, prosecutors argued, was probable cause to arrest him for negligent operation.

The Vermont Supreme Court disagreed. Referring to “common experience,” the court ruled that as a matter of law it was not negligent to drive over the wash-out and therefore there was no probable cause for the arrest. In fact, the court stated “[u]npaved roads, including driveways, are commonplace throughout Vermont … [t]o deliberately travel over such roads is a reality of Vermont life, not a rash decision.”

Discussing the court’s decision, the article quotes Vermont Law School professor Cheryl Hanna who said the court has essentially created a “bad-road defense” and navigating poor roads with potholes, wash-outs, or ruts does not give police probable cause to pull over motorists for negligent operation. Thus, a defense attorney could argue that weaving in a road was due to deep ruts or to avoid pot holes — not because the driver was intoxicated. 

Recovering From Sandy

The February 17 edition of the Insurance Journal describes substantial differences in how quickly insurers have acted on claims arising from superstorm Sandy. It cites data from the National Flood Insurance Program that indicates that, three and a half months after the storm, some of the private-sector companies that service flood insurance policies for the federal program have paid out on nearly all of their claims, while others have most of their claims outstanding. For example, the program found that Selective Insurance Co. of America, a New Jersey-based carrier with 18,599 flood claims from the storm, had been able to settle only 39% of them as of  February. In contrast, Allstate Insurance Co. had closed 94% of its 16,309 claims.

So far, the program has received more than 138,000 claims related to Sandy. Companies participating in the program have collectively paid out $4.1 billion. The federal government ultimately pays all claim payouts. Insurance companies make a commission selling policies and keep a share of the annual premiums to cover administrative costs, but have none of their own capital at risk when claims are paid or denied. They are paid a fee for processing claims, but cannot collect until a claim is closed, meaning carriers that resolve things quickly get paid faster. Fee payments for approved claims are higher than they are for denials.

State Spring Companies Bounce Back

State spring manufacturers are among those expressing near-term optimism in the metal forming industry, according to the Hartford Courant and an industry publication.

According to a January news release from the Precision Metalforming Association (PMA), 131 metal forming companies sampled in a monthly survey predicted a 4% to 6% growth rate for their industry in 2013. About one-third of those sampled believed that economic activity will improve in the first quarter, compared to 22% of those who responded a month earlier.

“Modest growth” in the automotive industry, coupled with a “strengthening” housing and construction market “support the modest optimism expressed by PMA member companies,” the association stated. 

The Courant article found similar optimism among state companies, including Farmington’s Connecticut Spring and Stamping. Sales at that firm increased 27% last year, a spokesman said.

Feds Delay Basic Health Program Until 2015

In a rather unusual fashion, the federal Centers for Medicare and Medicaid Services (CMS) announced earlier this month that one of the major provisions in the Affordable Care Act (ACA) will be delayed until 2015. The Basic Health Program, as it is called, would provide subsidized health care coverage to individuals with low incomes who do not qualify for the ACA’s Medicaid expansion, which requires states to cover childless adults with incomes up to 133% of the federal poverty level (FPL) beginning January 1, 2014. Individuals seeking coverage under the Basic Health Program would (1) be covered if their income was less than 200% of the FPL and (2) not be eligible to receive insurance coverage through a state’s health insurance exchange.

States had been waiting for CMS to issue guidance on the Basic Health Program, which was supposed to be up and running in 2014, but the federal agency is now telling states that it expects to issue such guidance sometime later this year, and final guidance in 2014. In the interim, CMS indicates that it is working with states that are interested in creating programs like the Basic Health Program that could help them cover the target population.

The announcement was unusual because it came in the form of a “Q and A” entitled “Medicaid and the Affordable Care Act,” not as a formal letter from CMS to states as is the norm.

In 2012, the Connecticut legislature considered two bills that would have created a Basic Health Program but neither passed. In the interim, a working group looked at the feasibility of Connecticut having such a program. In December 2012, the group recommended delaying a decision to adopt a Basic Health Program until there is additional information to evaluate costs and benefits. It cited the lack of CMS guidance as a factor in reaching its conclusion.

Hot Report: Comprehensive Energy Strategy – Gas Proposals

OLR Report 2013-R-0122 provides information on the natural gas proposals in the Department of Energy and Environmental Protection's (DEEP) draft comprehensive energy strategy. Specifically, it examines:

1. how DEEP arrived at its estimate for the cost to customers for switching from oil to natural gas and whether this estimate appears to be reasonable;
2. how realistic is the draft strategy's projection of a 53% growth in the number of gas customers in the seven years it covers;
3. how much interstate pipeline delivery capacity Connecticut has and whether this capacity is sufficient to deliver gas to the new customers anticipated by the draft strategy, even with increased compression on existing pipelines; and
4. what is the position of the gas companies on these issues.

As part of the draft strategy, mandated by PA 11-80, DEEP proposes a number of measures to encourage customers to switch from heating oil to gas. DEEP makes these proposals, in part, due to the fact that gas is currently less expensive than oil and DEEP's belief that this difference will
likely continue. Among the specific proposals are (1) establishing a financing mechanism to help residential and business customers pay for replacement heating equipment such as furnaces and (2) expanding gas distribution mains.

The draft strategy provides estimates for the following costs associated with fuel switching: (1) replacement heating equipment, (2) service lines and meters for those customers who do not already use gas for such things as cooking, and (3) distribution mains. Under existing Public Utilities Regulatory Authority (PURA) policy, all customers (existing and new) pay for gas meters and, in most cases, for service lines. The allocation of costs for new distribution mains between new and existing customers depends on their projected revenues.

According to the draft strategy, the average cost for heating equipment would be $7,500 for residential customers, $20,300 for commercial customers, and $40,600 for industrial customers. DEEP derived these estimates from a study conducted by the Department of Economic and Community Development (DECD) that was sponsored by the gas companies (Connecticut Natural Gas, Southern Connecticut Gas, and Yankee Gas Services). The residential cost estimates are consistent with data provided by a small survey of heating equipment contractors conducted by DEEP.

There does not appear to be a significant debate regarding the cost estimates for the service lines, meters, and distribution lines. But a number of individuals and entities have challenged DEEP's costs estimates for the heating equipment.

The heating equipment cost estimates appear to be reasonable, but they are averages. The actual costs for individual customers could vary substantially, based on such things as the size of the building to be served and the equipment's energy efficiency. In addition, the draft strategy does not address a number of incidental costs of fuel switching that might be allocated to individual customers.

DEEP estimates that its proposals would increase the number of gas customers by 53% over seven years. The number of customers switching from oil to gas has increased substantially in recent years, but the number of conversions per year would need to more than double to achieve this growth. Some of the factors that could affect the pace of fuel switching are in the hands of state policy-makers, such as the attractiveness of financing offered to customers who switch. Other factors are not. These include the relative prices of oil and gas and whether the interstate pipeline system is expanded to serve new customers in the state.

The three interstate pipelines that currently serve Connecticut can deliver about one million dekatherms (a dekatherm is about 1,000 cubic feet of gas) per day. This is sufficient to serve all firm (residential and other non-interruptible) current customers, as well as interruptible customers most of the time. The gas companies believe that the current system, together with planned capacity expansions of the existing pipelines, could meet the demands of the current pace of conversions. However, the draft strategy notes that substantially expanding gas use in the state would require expanding pipeline capacity by building new pipelines as well as by increasing capacity on existing pipelines by additional compression.

The three gas companies filed joint comments on the draft strategy in December 2012. They supported the proposals in the draft, addressed questions raised during the public sessions, and provided technical comments on DEEP's analysis. The companies believe that the draft strategy somewhat overstated the number of low-use gas customers (those who just use gas for cooking or water heating) who would likely convert to gas space heating. On the other hand, the companies believe that the draft strategy underestimates the value of fuel switching for commercial and industrial customers. While the companies agree that a substantial expansion in the number of gas customers would require new pipelines, they believe they can continue to add customers before these pipelines are built.

For more information, read the full report.

Study Suggests That The Type of Praise Matters

According to The Atlantic, a long-term study conducted by Stanford and University of Chicago researchers suggests that children praised more often for what they do (e.g., “good job”) instead of who they are (e.g., “good girl” or “good boy”) will be better equipped to face life’s challenges.

In the study, researchers videotaped 50 toddlers at age one, two, and three interacting with their parents. Five years later, the children who were praised more for what they did than who they are were more likely to believe in a person’s ability to grow and evolve, learn, and become more intelligent. They were also able to think of more strategies to deal with setbacks.

Additionally, researchers found that boys were praised more often for what they did (24.4% of the time) than girls (10.3% of the time).

The study will be published in an upcoming issue of the journal Child Development.

Using the Internet to Violate Judges’ Orders

The internet and social media have become primary portals through which people find and share information. A recent NY Daily Record article discusses the effect of internet and social media use on the courtroom.

The article notes that when a juror violates judicial orders by researching a case online, the violation is easier to prove because internet use leaves a digital trail. It cites a Florida case where a reggae star’s defense counsel brought a motion seeking a new trial after a juror was quoted as saying that during the trial she took notes and did research at home. The Florida judge instructed the juror to retain counsel and ordered her to bring her computer or its hard drive to an upcoming hearing.

The article questions whether a juror could be excessively penalized for violating a judge’s orders through the use of a computer instead of a newspaper or encyclopedia.

College Athletes’ Suit Against the NCAA Lives On

A California federal judge has rejected the NCAA’s efforts to have a two-year old antitrust case thrown out.  The class action, brought by former UCLA and NBA forward Ed O’Bannon and former college and professional stars Bill Russell and Oscar Robinson, asks the court to lift the NCAA’s ban on payments to college players for team-related activities.  The players’ major claim is that they are entitled to a cut of the revenues and profits colleges and universities earn from using their likenesses and names in such things as TV broadcasts and licensed video games.  As a remedy, they propose establishing a trust fund to hold each player’s share of these profits and revenues and disburse payments to players when they leave school.

The NCAA argues that current and former players are ineligible for a cut of colleges’ profits because they (1) are amateurs and (2) waived their marketing rights when they joined college teams.

The economic stakes are high:  TV broadcast revenues from college sports are estimated at nearly $2 billion a year.  And merchandise licensing revenue from items like T-shirts, caps, shoes, and video games were valued at $4.6 billion in 2012.

The case is scheduled for trial in July 2014.

Alzheimer’s Disease Cases Projected to Triple by 2050

According to a recent study in the peer-reviewed journal, Neurology, the number of U.S. residents over age 65 with Alzheimer’s disease could triple by 2050. Using 2010 U.S. Census data, the authors estimated that there were 4.7 million seniors with Alzheimer’s disease in 2010. It projects that number to increase to 13.8 million in 2050. These projections emphasize the need to find either prevention or treatment for the disease in order to decrease the future burden on individuals, families, and the health care system.

Hot Report: Federal Climate Change Report and Shoreline Protection

OLR Report 2013-R-0051 summarizes the provisions in the draft federal climate change report that are most relevant to the Shoreline Preservation Task Force. Former speaker Christopher Donavan appointed a bipartisan task force to address issues of climate change and shoreline preservation in the wake of the 2011 and 2012 storms that affected Connecticut. OLR Report 2012-R-0513 presents the task force's findings and recommendations.

For more information, read the full report.

Judge’s Rejection of Federal Settlement with Citigroup on Appeal

The federal Second Circuit Court of Appeals in New York recently heard an appeal in a case that tests a judge’s authority to reject a federal agency’s proposed settlement of a lawsuit.

In this case, a judge rejected a proposed settlement between the federal Securities and Exchange Commission (SEC) and Citigroup.  The case involved a $1 billion mortgage bond and allegations the bank deceived customers by selling pools of risky mortgages it knew would decline in value.  Clients lost more than $600 million and Citigroup agreed to pay $285 million to settle the case without admitting any wrongdoing.  The judge rejected the settlement, calling the amount “pocket change,” and stating that the settlement deprived the public of knowing the truth in an important matter.

Lawyers for both the SEC and Citigroup argued to overturn the judge’s decision.  They argued the judge exceeded his authority and did not defer to the SEC’s decision to settle, which conflicts with a century of judicial practice and second guesses the agency’s discretion and policy-based decision.  A lawyer representing the judge argued that judges do not automatically approve settlements brought by the SEC and assume they are in the public’s interest.

The appeals court’s decision could have a wide impact as other regulatory agencies often settle enforcement cases with corporations without requiring an admission of wrongdoing.

Here is a recent New York Times article on the decision. 

RGGI Strikes Back

A recent Washington Post blog post takes a quick look at the Regional Greenhouse Gas Initiative’s (RGGI) past and future.  Intended to limit carbon pollution from electric power plants, RGGI works as a regional “cap-and-trade” program for most northeastern states, including Connecticut.   However, carbon-dioxide emissions from the plants have fallen well below the RGGI cap due to the recession, which decreased electricity demand, and more power plants converting from coal to natural gas.  Emissions are currently 45% below the RGGI cap, leaving little RGGI-related incentive for power companies to invest in lower emissions.

In response, RGGI recently announced a proposal to sharply drop the cap below current emission rates next year.   According to the article, the drop could slightly increase electricity costs (less than 1%), while providing participating states with increased revenue from the companies that violate the cap (since 2009 the program has raised over $900 million from auctioning pollution permits).  Overall, the lower cap hopes to cut annual emissions by about 13 million tons (0.06%) of all power plant emissions in the U.S. last year.

Steps Taken to Address the Effects of Cyberbullying at the University Level

Rutgers University’s newly-founded Tyler Clementi Center, named in honor of the freshman student who took his own life in 2010, represents a university’s recognition of the challenges that college-aged students face when transitioning into life beyond high school. The center is a product of a partnership between Joe and Jane Clementi, Tyler’s parents, and Rutgers officials.

At age 18, Clementi took his own life after discovering that his roommate set up a webcam in their dorm room and watched him during private moments with another man. The roommate posted messages on Twitter, sharing details and telling others to watch. Originally, Clementi’s parents filed notices soon after their son’s suicide to reserve their right to sue Rutgers, but they later became allies with the university, entering into conversations about the center after participating in a 2011 symposium.

According to a recent New York Times article, the center’s work will focus on studying bullying, youth suicides, and abuse of new technologies by young people. Its goal is to form policies and strategies that will aid vulnerable students in their transition into college life and adulthood, and to share them with other colleges and universities. The center will host conferences and sponsor academic research on these topics.

In 2013, the center will host a March lecture on “growing up digital” and an April conference on transgender issues. The center will make its home in New Brunswick, NJ near the Rutgers campus.

Hemingway Cats Subject to USDA Regulation

A federal appeals court ruled last year that the descendants of Ernest Hemingway's cats are subject to federal regulation because they substantially affect interstate commerce. The famous six-toed (polydactyl) cats live at Hemingway's former home in Key West, Florida, which is now a museum.

The legal battle began when a museum visitor contacted the United States Department of Agriculture (USDA) about the cat's care and the agency investigated. The USDA wanted the museum to (1) obtain an animal exhibitor's license under the Animal Welfare Act (AWA); (2) either cage the cats at night, build a higher fence or add an electric wire atop an existing wall, or hire a night watchman; (3) tag the cats; and (4) build elevated resting places. The museum faced fines if it did not comply, so it took the USDA to court; then it lost the case.

The museum challenged the USDA's jurisdiction to regulate it under the AWA (which also regulates such things as zoos and circuses) and argued the cats do not impact interstate commerce sufficiently to subject it to AWA regulation. But the 11th Circuit Court of Appeals ruled that the AWA has been interpreted to regulate any exhibit of animals that are made available to the public. The court explained that the cats are made publicly available and affect commerce by their exhibition to museum visitors (who pay an admission fee), including many from out-of-state, and using images of the cats on the museum's website and in promotional materials. The court stated that exhibiting the cats is "integral to the Museum's commercial purpose, and thus, their exhibition affects interstate commerce."

Hot Report: Duty of Mental Health Professionals to Warn of Potentially Violent Conduct by Patients

OLR Report 2013-R-0089 summarizes the duty of mental health professionals to warn of potentially violent conduct by patients.

Connecticut statutes allow, but do not require, psychologists, psychiatrists, marital and family therapists, social workers, and licensed professional counselors to disclose information that would otherwise be confidential between the patient and therapist when they believe a serious risk of imminent personal injury to the patient or third parties exists. The statutes applying to the different mental health professionals are worded slightly differently. They all authorize disclosure, but they do not require it, nor do they place an affirmative duty on the mental health professional to warn either potential victims or law enforcement agencies. The statutes do not specify to whom the information may be disclosed. The statutes have not been amended since we issued our 2010 report and we have found no relevant case law on the duty to warn in Connecticut since then.

Mental health professionals may be held civilly liable under the common law, however, if they fail to warn an identifiable victim of an imminent physical threat. The common law duty to warn was initially articulated in a 1976 California Supreme Court case, Tarasoff v. Regents (17 Cal. 3d 425). Tarasoff held that therapists have an obligation to warn potential victims when they become aware of serious danger posed by their patients. While Connecticut's Supreme Court has declined to find a violation of the duty to warn in the factual situations presented to it to date, Connecticut courts have held that such a duty exists. A duty to control also exists under certain circumstances.

In January 2013, the National Conference of State Legislatures compiled duty to warn laws in all 50 states.

For more information, read the full report.

Department of Consumer Protection Releases Draft Medical Marijuana Regulations

The Department of Consumer Protection (DCP) has recently released draft regulations to implement the medical marijuana program established by PA 12-55. The draft regulations include almost 70 sections, addressing a variety of topics. Here are a few examples:

• Recordkeeping requirements for physicians who issue certifications for medical marijuana use;
• The process for adding additional conditions to the list of those that qualify for medical marijuana use; 
• The process for DCP to approve dispensary and producer permit applications; 
• Dispensary and producer security system requirements; 
• Product labeling requirements; and 
• Marketing and advertising restrictions.

 DCP will hold a public hearing on the draft regulations in the spring. For a link to the draft regulations, and more information about DCP's Medical Marijuana Program, see DCP's website.

 

Health Care Market Sunshine Rule Issued

The Centers for Medicare & Medicaid Services (CMS) has issued a long-anticipated final rule to increase public awareness of financial relationships between physicians and teaching hospitals and those who manufacture drugs, devices, biologicals, or medical supplies covered by Medicare, Medicaid, or CHIP.  The rule is required by the federal Affordable Care Act and reflects concerns that payments from manufacturers to physicians and teaching hospitals can introduce conflicts of interest that influence research, education, and clinical decision-making in ways that compromise clinical integrity and patient care and lead to increased health care costs.

The rule requires manufacturers to report, and CMS to publish online, specified transfers of “anything of value” (a broad term that is not further defined) they make to physicians and teaching hospitals. It also requires manufacturers and group purchasing organizations to make annual disclosures when physicians or their family members hold ownership or investment interests in them.
CMS will start collecting data August 1 and must have a public website up and running by September 30, 2014.  Its first posting will cover reports received between August and December 2013.  Interested parties will get a chance to review the data and make corrections before the information goes online. Non-compliant manufacturers and purchasing organizations are subject to civil fines of up to $1,150,000 per year.

Police using Automatic License Plate Readers More

According to a slate.com article, police departments across the nation are investing in automatic license plate readers (ALPR). These readers are designed to (1) photograph license plates of cars in motion, (2) process the license plate information automatically, and (3) send the results to a database. This information is helpful for tracking stolen vehicles, among other things.

A 2012 Police Executive Research Forum report states that 85% of police departments nationwide are planning to acquire or increase the usage of ALPR equipment in the next five years.

The American Civil Liberties Union is (1) concerned about the retention of these databases and (2) fearful that the databases can be used as a warrantless tracking system.

For more information on ALPRs, see OLR Report 2012-R-0482.

Data Driven Alternative to Traditional Banking

On January 8th, 2013, a New York Times article "A Financial Service for People Fed up with Banks" describes an Australian born entrepreneur’s idea for people fed up with their bank.  His alternative to traditional banking is an online banking service called 'Simple'.  

Simple is actually not a bank but holds its customers' money in federally insured banks. As a start-up company, Simple offers free checking accounts and data analysis of customers' transactions. Customers are given a card that is used like a debit card. However, with no physical branches or teller machines, customers must rely on applications on the Internet or their mobile devices to conduct business. This banking alternative is definitely designed for the technology enthusiasts.

With real-time financial data, tracking features, and other data tools, Simple hopes to offer insights into spending behavior. According to the New York Times article, Simple started signing up members late last year and now stands at 20,000 customers with more than $200 million in processed transactions. The company has the backing of venture capital firms and makes money off interest on the cash it carries. People who want a Simple Account must request an invitation on the company's website; certain minimum qualifications must be met.

New Clean Energy Financing Program for Businesses

The Clean Energy Finance and Investment Authority recently launched its Commercial and Industrial Property Assessed Clean Energy (C-PACE) program, a new financial product to help building owners seeking low-cost, long-term, upfront financing for clean energy upgrades.

The program provides a financing model that will allow building owners across the state to access low-cost financing and the opportunity to realize cleaner, cheaper, and more reliable energy.

C-PACE provides an opportunity for commercial, industrial, and multi-family property owners to finance energy efficiency and clean energy upgrades and to repay that investment through a benefit assessment charge on their property tax bill. Municipalities already use benefit assessments to finance projects including street paving, water and sewer systems, and street lighting. Typical C-PACE measures could include high efficiency lighting; heating ventilation air conditioning upgrades and controls; high efficiency chillers, boilers, furnaces, and water heating systems; replacement windows and other building envelope improvements; energy management systems; and renewable energy systems such as solar and fuel cells.  Upgrades eligible for financing must lower the energy consumption of the building or enable the building to produce clean energy. While there is no financing minimum, C-PACE financing is best suited for capital improvements above $150,000.

Building owners in municipalities that have already adopted C-PACE, including Stamford, Bridgeport, Norwalk, Hartford, Middletown, Durham, West Hartford, Beacon Falls, Windham, Simsbury, and Westport, are now eligible for this financing.

The Rise and Fall and Rise of Connecticut Manufacturing

Actually, manufacturing has been rising and falling at the same time, which perhaps explains why economists use the churn, an old tool farmers used to turn milk into butter, to explain why Connecticut's manufacturers have been boosting productivity while shedding jobs.  A recent The Connecticut Economy article describes the outward signs of this process in which "obsolete products or technologies make way for new innovations, and resources are allocated to more efficient uses."     

According to the job numbers, manufacturing jobs shrunk from about 33% (477,000) of all jobs in 1969 to less than 10% (174,000) in 2011. But, manufacturers boosted their output by more than half between 1990 and 2007. In short, they did more with less.  "Real output per worker (measured in 2005 dollars) grew from $57,000 in 1990 to $135,000 in 2007, an impressive 35% increase."  And the jump in output translated into higher wages. In 2011, factory workers' annual earnings averaged $76,900, 26% above the state's industry-wide average of $61,100. 

The story behind these seemingly contradictory forces is a fundamental change in the way manufacturers make things. Henry Ford's assembly line required workers to perform simple tasks repeatedly, the goal being to reduce production costs by mass-producing a few standard products. Today's factory requires workers to manipulate computers controlling robotic machines that make custom parts and products.

In addition, Henry Ford's sprawling brick factories have given way to smaller facilities operated by small and mid-size firms. In 2009, 85% of Connecticut's manufacturing establishments employed fewer than 100 people, up from 80% in 1990.

What does all this mean for the state's economic growth? "Though in the short-run the disruption that 'churn' causes might crimp industry growth, in the long run 'churn,' led by smaller firms, can be an important source of economic change and development."

Hot Report: Effectiveness of Maine Law Banning Smoking in Cars with Minor Passengers

OLR Report 2013-R-0078 summarizes the effectiveness of a Maine law that bans smoking in cars carrying minor passengers.

The law, which took effect in 2008, prohibits a driver or passenger in a motor vehicle from smoking when a child age 15 or younger is present. Violators are subject to a $50 fine or a written warning. According to the Maine Judicial Branch, police cited nine people for violating this law in 2011 and 12 in 2012.

A study of the law conducted for a 2011 master's thesis found a 44% decrease in the prevalence of smoking in a car in which a child was present between the time the law took effect and the fall of 2010.

For more information, read the full report.

Rankings! Rankings! Get Your Education Rankings Here!

Sometimes, it seems like folks just can’t get enough of 50-state education rankings. Hey, if your state didn’t make the top 10 of Education Week’s Quality Counts list, then maybe it’s in the top 10 of the Students First or the National Council on Teacher Quality’s (NCTQ) lists.

These lists are not all created the same way and—you guessed it—they provide a head-spinning array of rankings. So, in steps an older fourth ranking report called the Child Well-Being Index, produced by the Foundation for Child Development (FCD). They decided to put all three of the new rankings in perspective by diving into the factors that affect student learning, both within and outside of school.

The New America Foundation’s Early Ed Watch blog provides details of the comparison. Connecticut appears on two of the top ten lists: (1) NCTQ’s list that emphasizes state policies that ensure teacher education programs are preparing classroom-ready teachers and (2) FCD’s ranking of seven areas of child well-being, which weighs more out-of-school factors. No states made it onto all four lists and only Massachusetts and Florida appeared on three of the four.

New Poverty Guidelines Released

The U.S. Department of Health and Human Services just released new poverty guidelines for 2013. The new amounts reflect a 2.1% increase in the Consumer Price Index between calendar years 2011 and 2012. These guidelines are used for eligibility purposes in numerous federal and state public assistance programs, often as a percentage multiple of the guidelines (e.g., 150%).

This means that for a household of one, the annual guideline is rising from $11,170 to $11,490 and for a household of two, the amount rises from $15,130 to $15,510, and so forth.

Violent Crime Against Youth Declining in Recent Years

A recent report from the federal Bureau of Justice Statistics (BJS) finds that the rate of serious violent crime against youth ages 12 to 17 declined by 77% from 1994 to 2010.  This reduction is similar to the decline in violent crime against adults ages 18 and older during this period.  Serious violent crimes include rape or sexual assault, robbery, and aggravated assault. 

Among the report’s other findings:

1. in 1994, male youth were almost twice as likely as female youth to be serious violent crime victims, but in 2010 the victimization rates were very similar;
2. in 2010, black youth experienced the highest rate of serious violent crime among racial and ethnic groups;
3. from 2002 to 2010, rates of serious violent crime against white youth declined by 26%, Hispanic youth declined by 65%, and black youth remained the same;
4. from 1994 to 2010, more than half of violent crimes against youth were not reported to police; and
5. from 1994 to 2010, the rate of serious violent crime against youth involving weapons declined by 80%.

 The report uses data from BJS’ National Crime Victimization Survey.

 

Tips for Buying Firewood

The Department of Consumer Protection provides several tips for buying firewood, including:

1. knowing the length of firewood needed and specifying that length when ordering (standard length is 16 inches, but some larger appliances need bigger pieces);
2. checking prices with multiple firewood dealers before buying (seasoned firewood currently sells for between $220 and $300 per cord);
3. if possible, going to the wood log and inspecting and measuring the wood yourself, or measuring it upon delivery; and
4. getting a signed receipt that includes the business name and contact information, the business owner’s name, the amount of firewood delivered, and the amount paid. 

By law, firewood should be sold only by the cord or half-cord, and not by the truckload.  A cord is a stack of wood that measures 128 cubic feet; a half-cord measures 64 cubic feet.

Hot Report: Summary of NRA v. BATFE

OLR Report 2013-R-0097 summarizes NRA v BATFE (700 F.3d 185), a case where the Fifth U.S. Circuit Court of Appeals in Texas upheld a federal law that prohibits federally licensed firearm dealers (FFLs) from selling handguns to people under age 21. Plaintiffs challenged the law's constitutionally on grounds that it violated their Second Amendment right to keep and bear arms and Fifth Amendment right to equal protection under the Due Process Clause.

The three-judge panel adopted a flexible two-step inquiry established by other circuits analyzing firearm regulations in the wake of the U. S. Supreme Court holdings in District of Columbia v. Heller (554 U.S. 570 (2008)) and McDonald v. Chicago (130 S. Ct. 3020 (2010)). The two-step inquiry involves (1) first determining whether a challenged law impinges upon a protected Second Amendment right and (2) next determining the appropriate level of judicial scrutiny to apply to the analysis. The court, after surveying the history and tradition of gun sale regulations, concluded that the federal ban on handgun sales to people under age 21 did not touch on protected Second Amendment activity. It rejected the National Rifle Association's (NRA) request to apply strict scrutiny in considering the ban. Applying the less exacting intermediate scrutiny standard, it held that curbing crime by those under age 21 constitutes an important government objective and the ban adequately served that end.

The court also rejected the NRA's equal protection argument, noting that the government may discriminate on the basis of age without offending the constitutional guarantee of equal protection if such discrimination is rationally related to a legitimate state interest.

For more information, read the full report.

New Housing Permits Highest Since 2008

According to this New Haven Register article, the Department of Economic and Community Development (DECD) released numbers last week that may signify an upturn in Connecticut’s real estate market.  The numbers, which are based on the U.S. Census Bureau’s monthly survey of 128 towns, show that in 2012, the state issued 4,140 new housing permits—the most it’s issued since 2008 and up almost 46% since the December 2011 low of 2,837. New residential construction is generally seen as a leading indicator of market strength.  In response to DECD’s report, Joanne Carroll, publisher of Connecticut Builder magazine, said, “there’s very little inventory left and there is a demand for new homes that is pent up….Prices should start climbing very slowly as they have in the rest of the country.”

To access the data, visit DECD’s website and see “December Housing Permits Town Data” or “Monthly Totals/YTD.” (Both are Excel files.)

Veterans Disability Claims

Timely processing of veterans’ disability claims remains a daunting challenge, according to a recently released study by the Government Accountability Office. As the number of claims for veterans’ benefits has increased, so have processing deadlines, according to the study. Several factors have contributed to increased processing timeframes and backlog, including the higher number of claims and the higher number of disabling conditions, including traumatic brain injuries, which require more complex assessment, the GAO study found. The report indicated that design and implementation of the compensation program also contributed to processing delays. The report contains several recommendations.

Mandatory Event Data Recorders

The National Highway Traffic Safety Administration (NHTSA) will propose that all light passenger vehicles built on or after September 1, 2014 have data event recorders (EDRs), similar to the "black boxes" on airplanes.

The EDRs record technical data related to crashes and can be used to piece together what happened.

The NHTSA proposal is not a huge leap, because about 96% of 2013 model year cars and light-duty vehicles are EDR-capable. The New York Times reports that EDRs cost about $20 each.

NHTSA administrator David Strickland said "EDRs provide critical safety information that might not otherwise be available to NHTSA to evaluate what happened during a crash - and what future steps could be taken to save lives and prevent injuries."

Rethinking Medical School

The American Medical Association (AMA) is challenging medical schools to rethink how they train future doctors. It has three main goals:

• Improving health outcomes and reducing health care costs
• Accelerating change in medical education to align physician training and education with the evolving health care system
• Enhancing professional satisfaction and practice sustainability by helping physicians navigate and adopt delivery and payment models that make the most sense for them and their practices

The AMA is currently taking requests for grants from medical schools “that propose bold and innovative projects that support significant redesign of undergraduate medical education.”