How Do Consumers Respond to “Amazon Taxes"?

According to a recent study, in states that have adopted an “Amazon tax,” Amazon shoppers buy less, make fewer large-ticket purchases, and shift their purchases to other online and brick-and-mortar retailers.

The study’s authors, economists at Ohio State University, focused their analysis on five states that adopted “Amazon taxes” between 2012 and 2013.  These taxes require Internet sellers to collect sales tax on purchases made by residents of states where the sellers have no physical presence in the form of stores, warehouses, or employees.  They’re known as “Amazon taxes” because they target sellers like Amazon.com that pay commissions to independent Internet affiliates who refer buyers to the company through Internet links.

The authors hypothesized that Amazon taxes would lead to a decline in Amazon’s sales and substitution to alternative retailers.  According to their findings:

• The introduction of the tax resulted in a large decline across such states of 9.5% in the value of products purchased on Amazon.
• The total dollar amount spent on Amazon, including taxes, decreased by 2.8% in the wake of the law’s implementation.
• Consumers decreased their spending by 15.5% on purchases over $150, and by 23.8% on purchases of $300 or more.
• The likelihood of shopping at Amazon during any particular week decreased by 0.7 percentage points, representing a relative decline of 3.7%, following the tax’s implementation.
• Amazon shoppers increased their purchases at competing retailers by 19.8% and at local brick-and-mortar retailers by 2.0%.
• After the tax went into effect, sales of Amazon Marketplace merchants, who are generally not subject to the Amazon tax, increased by 60.5% for sales of $300 or more.

Massachusetts Adopts Early Voting

On May 22, Gov. Deval Patrick signed House bill 3788 into law, making Massachusetts an early voting state.  MassLive.com reports that beginning in 2016, voters will be able to cast ballots during an early voting period, which will start 11 days before the primary or election and end two days beforehand.   According to the National Conference of State Legislatures, Massachusetts joins 33 other states that allow for early voting before Election Day.  The bill contains a number of other elections-related provisions, including a requirement that the secretary of the state create an online portal for voter registration.

“What’s in Your E-Wallet?”

A new publication from Connecticut’s Department of Banking discusses virtual currency (like Bitcoin) and some of the risks associated with it.

A virtual currency is an electronic medium of exchange that is not controlled or backed by a government or central bank.  While all investments involve risks, the publication points out that investing in virtual currencies involves additional risks such as minimal regulation of the currency and the companies offering the currency and related products; susceptibility to hacking; and, unlike bank accounts, lack of federal insurance for deposits.

More information on Bitcoin and virtual currencies is also available in OLR Report 2014-R-0050.

Hot Report: 2013 and 2014 Legislation Affecting Access to Mental Health Services

OLR Report 2014-R-0150 answers the question: What significant legislation was enacted this year and last year concerning access to mental health services?

The legislature passed several bills during the 2013 and 2014 sessions affecting access to mental health services. Below we briefly summarize relevant provisions of some of them. Please note that not all provisions of the acts are included. Complete summaries of 2013 Public Acts are available on OLR’s webpage. Complete summaries of 2014 acts will be available in the coming weeks.

Areas were legislation was passed include:

• Regional Behavioral Health Consultation System for Pediatricians
• Adverse Determinations and Mental Health Insurance Coverage
• Assertive Community Treatment (ACT)
• Comprehensive Plan for Children’s Services
• Information and Referral Service
• Advanced Practice Registered Nurse (APRN) Independent Practice

For more information, read the full report.

Examining Property Tax Exemptions for Nonprofit Organizations

One of the major issues the Connecticut General Assembly took up in 2014 was how the state treats certain nonprofit organizations for property tax purposes and reimburses cities and towns for the lost revenue from certain state-mandated property tax exemptions.  Connecticut is not alone in grappling with these issues.  As a recent State Tax Notes article reported, two nearby states, Vermont and Maine, have also been seeking ways to strike a balance between tax exemptions for nonprofits and local revenue needs (“Major Property Tax Developments in 2013,” May 5, 2014).

In January 2014, Vermont’s Property Tax Exemption Study Committee proposed to overhaul the state’s tax-exempt treatment of nonprofit organizations.  The report recommended that the state determine each nonprofit organization’s eligibility for an exemption from the state’s education property tax.  Municipalities could then vote to exempt qualifying organizations’ properties from local property taxes.  The state and local exemption for colleges and universities would be predicated on a payment to the town for municipal services in lieu of local property taxes.

Maine’s Nonprofit Tax Review Task Force, on the other hand, was specifically charged with evaluating a proposal to impose a temporary assessment on nonprofit organizations to generate $100 million in annual state revenue.  The report concluded that any proposal to tax nonprofit organizations, whether on a temporary or permanent basis, “is neither a feasible nor desirable recommendation.”  It also suggested that any further discussions about taxing or imposing fees on nonprofit entities be limited to “locally applied service charges.”

States Changing the Terms on Medicaid Expansion

Under the Affordable Care Act, roughly half of the states, including Connecticut, have expanded Medicaid to cover more low-income individuals. The federal government will pay for this expansion through 2016, gradually reducing its contribution to 90% of costs in 2020. Other states opted not to expand Medicaid, effectively refusing these federal funds.

But a small number of states are forging a third path, negotiating with the Centers for Medicare and Medicaid Services (CMS) to expand Medicaid under a waiver program, which would allow these states to accept federal funds to explore alternative options. Waivers allow states to waive or modify Medicaid rules, as long as CMS approves. Iowa and Arkansas have both expanded their Medicaid programs through waivers, and Pennsylvania is in negotiations with CMS. Indiana’s governor has also announced an expansion plan that would need CMS approval.

Thus far, the alternative plans include provisions not normally allowed in standard Medicaid plans, such as monthly contributions, premiums, and using federal funds to support the purchase of private plans. Pennsylvania’s expansion, if approved, would be the first to include work requirements. The Council of State Governments provides more detail and analysis of these plans in this article.

FCC Proposal on Net Neutrality

According to the Washington Post, the Federal Communications Commission (FCC) recently advanced a proposal that could allow Internet service providers (ISPs) to charge Internet content providers for higher-quality delivery of their content to consumers.  For example, an ISP could charge a content provider, like Netflix, for the additional costs of providing faster video streaming.

The FCC maintains that its proposal would prohibit ISPs from “commercially unreasonable” practices like blocking a website or reducing a consumer’s download speeds from a website to a rate below that which the consumer bought.  Opponents of the proposal, however, fear that it will hurt smaller companies that cannot afford to pay ISPs for faster service, and increase consumer costs as content providers pass along the new ISP charges.

The proposal is open for public comment for 120 days.  Once the FCC reviews the comments, a final rule could be rewritten by the end of the year.  The FCC’s website has additional information on the proposed rule and how to comment.

Hot Report: OLR Backgrounder: State-Mandated Health Insurance Benefits

OLR Report 2014-R-0143 briefly describes Connecticut’s mandated health insurance benefits. It updates an earlier report (2012-R-0446) by incorporating laws enacted in 2013 and 2014. (See OLR Report 2008-R-0138 for a list of health care providers and facilities whose services health insurance policies must cover under state law.)

A health insurance benefit mandate is a requirement that an insurance company or health plan cover a specified benefit. In Connecticut, private health insurance benefit mandates are contained in Chapter 700c of the General Statutes.

Each benefit mandate statute identifies the specific plans to which the mandate applies. Many of the mandates apply to both individual and group health insurance plans. However, due to the federal Employee Retirement Income Security Act (ERISA), state benefit mandates generally do not apply to self-funded plans.  For more information about ERISA preemption, see OLR Report 2005-R-0753.

In 2013 and 2014, the legislature enacted the following four acts related to health insurance benefit mandates:

1. PA 13-84, An Act Concerning Health Insurance Coverage for Autism Spectrum Disorders (effective upon passage, June 5, 2013).
2. PA 13-131, An Act Concerning Synchronizing Prescription Refills (effective January 1, 2014).
3. PA 13-307, An Act Concerning Copayments for Physical Therapy Services (effective January 1, 2015).
4. PA 14-97, An Act Concerning Copayments for Breast Ultrasound Screenings and Occupational Therapy Services (effective January 1, 2015).

For more information, read the full report.

Student Information and Ed Contractors’ Privacy Policies

Many parents feel it’s a great convenience to receive automatic email updates about how their children are doing in school. But some wonder if the systems producing these updates also provide student information to profit making third parties. In light of the growing debate about student information and the use of private tech contractors, Education Week conducted a review of three of the education tech sector’s biggest players to see how their privacy policies stack up—Edmondo, Khan Academy, and Pearson.

Education Week arranged for two privacy experts, Joel R. Reidenberg, a Fordham University Law professor, and Khaliah Barnes, a lawyer for the electronic privacy information center, to review these companies’ privacy policies, and the experts’ findings raised many concerns.  “We're just scratching the surface with our understanding of how the education sector is gathering and looking to monetize student information,” Reidenberg told Education Week.

Khan Academy came in for the harshest criticism. Barnes told Education Week that this California-based non-profit’s privacy policy allows for an “almost limitless” sharing of student data with third parties. Khan disputed Barnes’ claim, stating that his analysis did not reflect its actual practices and that the firm is “adamantly opposed to the idea of commercializing student information, particularly through third parties.”

Pearson, a large publishing company, offers the PowerSchool student information system, which includes sending email updates to parents in K-12 districts. Pearson raised the fewest concerns. The Education Week review noted that Pearson does not have any right to the student data, which many districts store on their server, not the company’s server. Furthermore, the Education Week article quoted a North Carolina state education leader saying that Pearson must get local district permission before giving a third-party vender access to student information. PowerSchool is currently in use in about 4,500 school districts around the country, including Hartford, Stamford, New Britain and other Connecticut districts.

Pennsylvania’s Property Tax Tug of War

Pennsylvania, like most states, funds public education with property taxes. A bill in the state’s Senate, though, would replace these taxes with state income and sales taxes, triggering a debate that explains why it’s hard to change or eliminate a particularly unpopular tax. That debate has the look and feel of a tug of war, but with a twist.

Source:

http://www.artlicks.com/events/2188/anthony-schrag

A tug of war is a good metaphor for characterizing many public policy debates. Quite simply, it’s a contest in which two teams pull at the opposite ends of a rope until one team drags the other over a central line. In Pennsylvania’s case, though, there are several teams pulling on ropes tied to a ring, with each team pulling from a different angle. Some teams try to move the ring in certain directions, while others are trying to keep it where it is.

State Senator David Argall started this multi-team contest when he proposed funding public education with state instead of local taxes. Argall believes the property tax is simply the wrong tax to fund schools. It was instituted in the 1830s when times were different, and today bears little or no connection to one’s ability to pay.  The property tax can “literally make people homeless. It can drive seniors on a fixed income out of a home that they may have built 50 or 60 years ago.  It’s incredibly unfair,” Argall told Stateline’s Elaine S. Povich.

But, as Povich pointed out, “replacing property tax revenue is not easy, and the tax also has [its] defenders—usually the constituencies that would pay more taxes if they went away.” The defenders include local officials. George Washington University professor David Brunori argues the property tax is a good tax because municipalities control how it is spent. The revenue states share with municipalities often comes with strings that limit or restrict local discretion. 

The Pennsylvania Budget and Policy Center and several education and civic engagement groups argue that the property tax provides a more reliable revenue stream than state taxes. The Pennsylvania Chamber of Business and Industry opposes Argall’s bill for different reasons, mainly “fears that raising income and sales taxes would hurt the state’s economy.”

Where does the contest stand now? The Senate finance committee will probably approve the bill, but the outlook in the House is cloudy.  The House “rejected similar legislation on an amendment earlier this year, and is apt to do it again.”  The governor supports the bill, but “noted the revenue must be replaced,” Povich stated.  The governor’s observation suggests the bind legislators find themselves in: they “might not get credit for reducing property taxes since they are levied at the local level, but would get the blame for raising income and sales taxes,” observed G. Terry Madonna, director of the Center for Politics and Public Affairs at Franklin and Marshall College.

Hot Report: Connecticut Group Homes

OLR Report 2014-R-0078 answers the questions: How many state agency group homes are in Connecticut? Where are they located? How many people are they licensed to house and how many do they currently house?

The departments of Developmental Services (DDS), Mental Health and Addiction Services (DMHAS), and Children and Families (DCF) operate or fund 973 licensed residences in single-family homes, apartments, and condominiums. DDS’ residences are called group homes, while the DMHAS and DDS residences are referred to by different terms. The agencies provide services to the people housed in these residences and their total capacity is 4,524 (3,880 is for DDS clients).

DDS reported the largest number of residences and in the most places—869 in 141 municipalities. DCF reported 82 residences in 52 municipalities, and DMHAS reported 18 in 14 municipalities. (Note: This is an update to OLR Report 2010-R-0221. The Court Support Services Division no longer operates group homes, and therefore is not included in this report.)
For more information, including tables listing all of the DDS, DMHAS, and DCF residences, read the full report.

Taking a Cue from a Beetle to Defend ATMs

A team of Swiss scientists has stolen a page from the bombardier beetle to fend off ATM vandals. The beetle fends off attackers by spewing a combination of chemicals that create a caustic acid. Well, the scientists have figured out how to design an ATM that spews caustic acidic foam in a vandal’s face when he or she strikes the ATM. Here’s how it works. When a vandal strikes an ATM, he or she ruptures several layers of plastic, thus releasing the chemical concoction in the vandal’s face. 

The scientists, who published the study in Journal of Materials Chemistry A, point out that the system is cost effective and hard to beat because it doesn’t use electricity. They also used this approach to develop a similar self-defending film for cash boxes that would render its contents blue and marked with DNA.

This technology has still other uses. In fact, it can “be used anywhere you find things that shouldn't be touched," according to Wendelin Jan Stark the EHT Chemistry and Applied Bioscience professor who headed the research team. For example, Stark’s technology can be used to prevent animals from gnawing at trees and corps, according to the press release describing Stark’s work.

Community-Based Care

Community and home-based care for the elderly is popular with Medicaid policy makers because it is generally viewed as a more cost effective alternative to nursing home care. Also, the vast majority of people prefer to live in their own homes than in a nursing home. But a recent study in the Journal of the American Geriatrics Society finds that seniors who left a nursing home for community care were 40% more likely to become hospitalized for a potentially preventable reason than those who stayed in the nursing home.

The researchers reviewed records from the federal Centers for Medicare and Medicaid Services of thousands of dually eligible seniors from Arkansas, Florida, Minnesota, New Mexico, Texas, Vermont, and Washington who entered nursing homes between 2003 and 2005. They say the findings suggest that some medical needs are not as well addressed in community settings as they are in nursing homes.

A Connecticut public act (PA 13-250) made several changes in the law to help seniors remain in their own homes or community settings of their choice, regardless of age or disability.

An Old Question Reconsidered: Buying vs. Renting

Should you buy or should you rent? Everyone has an opinion but Zillow, a real estate marketplace and research company, brings a lot of data to the discussion and their answer is: it depends.

Nationally, in the first quarter of 2014, Zillow found that buying makes sense for people who plan to stay in the same location for at least 2.1 years.  However, there’s huge variation among communities.  In Connecticut, for example, that length of time ranges from just over a year in Hartford and Bridgeport to more than 31 years in Stonington.

Factors that Zillow considered in making these assessments included:

• the price-to-rent ratio
• expected home value appreciation
• expected rental appreciation
• mortgage rates
• the rate of return on non-housing investments

The last item refers to the idea that the person choosing to rent would save and invest the difference between the rent and the total monthly cost of owning a home.

Car Ownership and Use Dropping

A study by the University of Michigan Transportation Institute examines several trends in car ownership and use. The study finds that, as a country, we own fewer cars and drive them less than we did in the mid-2000s.

Car ownership, for example, has been dropping since 2006. Such a decline could be expected during an economic downturn but the trend has continued. As of 2011, the average household owned less than two cars. The study’s authors believe this is a temporary down turn and the absolute number of cars will again increase. 

Distance traveled in cars, too, is down from 2004. According to the study, the average driver travelled 13,711 miles in 2004 and 12,492 in 2011 — 1,200 fewer miles. This trend is seen whether measuring miles per household, per vehicle, or per person. The study’s authors attribute this partly to an increase in public transportation use and telecommuting, along with other factors such as increases in gas prices and unemployment. The graph below displays some of the information compiled by the authors.

Source: The Atlantic

Hot Report: Cost of Operating Different Types of Fire Departments

OLR Report 2014-R-0147 answers the question: How does the cost of operating a volunteer fire department compare with that of operating a paid fire department?

We were unable to locate any current study on the relative cost of operating various types of fire departments. But a widely cited 1992 study by Brudney and Duncombe concluded that if annual costs per volunteer firefighter are (1) $835 or less, volunteer fire departments are least costly; (2) between $835 and $1,500, combination departments (those using a mix of paid and volunteer firefighters) are least costly; and (3) more than $1,500, career (also called paid or professional) departments are least costly.

The research and anecdotal evidence suggest that volunteer and career departments differ primarily in the pay, recruitment, training, and administrative costs. But the cost difference may be attributed to other factors as well. Another widely cited 2001 study concluded that volunteer departments cost less to operate than career departments where less fire protection is demanded. The study authors concluded that volunteer fire departments are likely to cost less than career departments where (1) longer response times, fewer emergency services, and lower insurance ratings are acceptable to the community; (2) the firefighting environment is less difficult; and (3) volunteers are more readily available. According to the study, as more fire protection is demanded, the relative cost of volunteer protection rises relative to professional protection.

A Mansfield, Connecticut, study that compared the costs of operating different types of fire departments in 11 Connecticut towns generally found that volunteer departments cost less to operate than paid departments, but we believe the sample was too small to be conclusive.

In February 2014, OLR surveyed Connecticut fire department chiefs statewide to determine how much it costs them to operate their fire departments. Appendix 2 presents the data on the 12 towns that responded to the survey. We include the data for information purposes, but because of the small number of respondents, we have not drawn any conclusions from the responses.
For more information, read the full report.

2013 Saw Below-Average Insured Losses Due to Disasters in U.S.

Not only was 2013 a better year for disaster-related insurance losses in the U.S. than 2012, it was also below the 10-year average and the best year since 2009, according to a report from Aon Benfield, a European reinsurance company.  The report found $45 billion in insured losses in 2013, much less than the $72 billion in 2012 and less than the $58 billion for an average year in the last decade.

Globally, the report found that insured losses were 22% below the 10-year average with most of the worst events occurring outside the U.S. Central European flooding proved to be the costliest single event in 2013.

The report notes that a Category 3 or stronger hurricane has not made landfall in the U.S. in eight years, which is the longest recorded streak.  It also notes that 2013 was the fourth-warmest year on record for the world as a whole.

Closing the “Word Gap”

Citing recent research showing that children’s brains benefit from continuous interaction with parents and caregivers from birth, Providence, Rhode Island is one of several cities embarking on an ambitious program to reduce the knowledge gap between low-income children and their more well-off peers.

Called Providence Talks, the program provides parents of low-income children with tiny recorders that capture every word a child hears. “The recorder acts as a tool for instructing…parents on how to turn even a visit to the kitchen into a language lesson,” the New York Times reported in March.
According to the article, many parents, especially among the poor and recent immigrants, are unaware of the value of talking, as well as reading and singing to, and playing with, their babies.

“In the same way that we say you should feed your child, brush their teeth, you should be stimulating their brain by talking, singing, and reading to them,” Ann O’Leary told the Times, whose Too Small to Fail program seeks to close the country’s “word gap.” According to the article, the program has focused on Latino children because more of them live in poverty than do children of any other racial or ethnic group.

Aging and Health in America

By 2030, older adults, who currently account for 66% of the country’s health care budget, will constitute roughly 20% of the U.S. population, according to  "The State of Aging & Health in America 2013,"  a report published by the U.S. Centers for Disease Control and Prevention (CDC).

The CDC report ranks all 50 states and the District of Columbia on 15 indicators of adult health and provides a “snapshot of the nation’s progress toward improving the health of older adults.” The indicators are grouped into four areas: health status, health behaviors, preventative care and screening, and injuries. Connecticut ranked in the top 25% of states on nine of the indicators.

The report includes several “calls-to-action” to “encourage individuals, professionals, and communities to take specific steps to improve the health and well-being of older adults.” They include: 

1. developing a new healthy brain initiative road map;
2. addressing lesbian, gay, bisexual, and transgender aging health issues;
3. using data on physically unhealthy days to guide interventions;
4. addressing mental distress among older adults; and
5. monitoring vaccination rates for shingles.

Hot Report: Privacy Protections Implicated by the Domestic Use of Unmanned Aerial Vehicles or Drones

OLR Report 2014-R-0137 answers the question: What is the state of the law protecting individual privacy interests from potential invasion by domestic use of Unmanned Aerial Vehicles or drones?

Unmanned Aerial Vehicles (UAVs), commonly known as drones, are a class of aircraft that can fly without a human operator onboard. UAVs come in a variety of sizes, ranging from small aircraft to the size of conventional aircraft. UAVs are also referred to as unmanned aerial systems (UAS), a term that includes the aircraft and any ground-based pilots, computers, or equipment supporting the UAV. Some UAVs are remotely operated while others fly autonomously along predetermined paths. The domestic use of UAVs by the government and private individuals has significant privacy implications.

Compared to traditional surveillance techniques and technologies, UAVs are a much more adaptable and flexible technology. They are able to surreptitiously track and monitor individuals for long periods, fly into areas that are difficult or dangerous for a human pilot to reach, and can carry technology, such as thermal imaging cameras, that effectively allow the operator to “peer through walls.”

The domestic use of UAVs implicates the privacy interests of private citizens in distinct ways depending on the operator. Governmental use of UAVs is subject to federal Constitutional constraints under the Fourth Amendment’s prohibition on unreasonable search and seizure. It is difficult to know how the Fourth Amendment will apply to UAVs; however, several U.S. Supreme Court cases addressing warrantless aerial surveillance suggest the government may have wide latitude in conducting warrantless surveillance with UAVs.

For private UAV operators, in the absence of statutes setting out specific rights and remedies, privacy interests could be protected in certain circumstances using the tort of invasion of privacy through an unreasonable intrusion upon the seclusion of another. Prevailing on such a claim would entitle the plaintiff to money damages and potentially a court order prohibiting further violations.

The use of UAVs by government agents or private individuals may also be constrained by statute. Currently, there is no specific statutory restraint on UAV use in Connecticut. At least 16 states have adopted laws specifically addressing UAVs.

While the Federal Aviation Administration (FAA) is currently drafting regulations to govern the domestic use of UAVs, the agency has stated the regulations will not address privacy concerns. According to the agency, its obligation to regulate UAVs does not include developing or enforcing policies concerning privacy or civil liberties issues. However, in November 2013, the FAA released a privacy policy governing agency-approved UAV test sites. The policy includes requirements to: (1) have a written, publicly available privacy policy; (2) allow for public comment as part of an annual privacy policy review; (3) require all operators at the test site to have a written plan for use and retention of all data acquired by a UAV; and (4) comply with all applicable local, state, and federal laws concerning privacy and civil liberties.

In the past eight months, there have been several reported instances of UAV use in Connecticut demonstrating the potential privacy implications of UAVs. In January, the Branford Fire Department used a UAV owned by a volunteer firefighter to determine whether it was safe to send firefighters into an area where a fire was threatening to spread into an explosives storage area. Following this success, the department acquired its own drone, which it later used to locate a missing puppy in a swamp. In February, Hartford police noticed a drone hovering over the scene of a fatal car accident. The UAV was owned and operated by an off-duty freelance journalist. The FAA is currently investigating this incident because current federal rules prohibit commercial use of UAVs domestically. In September, the Stamford Advocate reported real estate agents in Fairfield County are already using UAV-produced aerial photography to market high-end homes.
For more information, read the full report.

Art Patrons to Motor City’s Rescue

Art patrons and private foundations usually donate funds to support art museums and other cultural assets. In Detroit, though, they’re offering to donate $466 million help the city get out of bankruptcy, the Christian Science Monitor reports.

Source: Detroit Institute of Art.
Diego Rivera, "Detroit Industry Mural"

The patrons’ offer is part of a bigger $816 million “grand bargain” that includes $350 million in state tobacco settlement money intended to reduce pension cuts. “In exchange, retirees will be asked to give up their right to sue the state and agree to allow the Detroit Institute of Arts to transition to an independent entity.” And there lies the basis for the patrons’ generosity: an independent Institute keeps its most valuable collections remain off the auction block.

Detroit’s bankruptcy figures into a showdown between San Bernardino and California’s pension fund administrator.   “At issue is the $17 million in back payments and penalties that San Bernardino failed to make between declaring bankruptcy in August 2012 and resuming payments in July,” the New York Times reports.

The city and the agency are at odds over whether federal law, which allows bankrupt companies to slow pension fund payments, trumps California law, which requires full, on-time payments. The federal judge hearing the Detroit case ruled that federal law controls in that case. California contends this ruling doesn’t apply to San Bernardino because its circumstances are different from those in Detroit.  California may have to defend its claim in court if mediation fails.

Many Student Veterans Pursuing Degrees

A recent Student Veterans of America report found that 51.7% of veterans using the Montgomery and Post-9/11 GI bills have received a postsecondary degree or certificate. This completion rate is similar to that of traditional college students and greater than that of other nontraditional students.
The report also found that though it takes veterans longer than traditional students to finish their degrees, they often earn graduate degrees after completing their initial studies.

Veterans most often pursued:

1. associate degrees in the fields of liberal arts and sciences, business, homeland security, law enforcement and firefighting, and health professions and
2. bachelor's degrees in business, social sciences, homeland security, law enforcement and firefighting, and computer and information sciences.

Hot Report: Dog Policies at State Beaches and Municipal Parks

OLR Report 2014-R-0133 answers the questions: Which state parks, shoreline state parks, and municipal beaches allow dogs? How many dogs are licensed in Milford?

According to the Department of Energy and Environmental Protection’s (DEEP) website, 106 of 107 state parks (and all 32 state forests) allow dogs that are on a leash. But, dogs are not allowed in buildings, swimming areas, or state park campgrounds. In addition, dogs are not allowed (1) in some state parks during certain times of the year or (2) at any time in Dinosaur State Park.

Among the eight shoreline state parks, seven allow dogs year-round, but four restrict them to certain areas (e.g., picnic areas or hiking trails). One, Sherwood Island, allows dogs only during off-season months. (For related information about pets in state parks, see OLR Research Report 2010-R-0435.)

Among the 24 shoreline municipalities with municipal beaches, only one allows dogs on its beach year-round (Esker Point Beach in Groton). Eleven prohibit dogs entirely, nine allow dogs during certain times of the year, and three allow them during any time of the year in specified areas (e.g., boardwalks, parking lots, nature trails, or grass). The Department of Public Health’s regulations require municipalities and other entities (except the state) operating or maintaining a public swimming area to prohibit domestic animals from being in the water or on the immediate shoreline when the swimming area is open for use (Conn. Agencies Regs. 19a-36-B61, effective March 17, 2014).

State law generally requires each person who owns or keeps a dog to license it annually by June 30 in the town clerk’s office (CGS § 22-338). According to the Milford town clerk, there are 2,165 dogs licensed in Milford for FY 2014.
For more information, read the full report.

No Spike Predicted for Summer Gas Prices

Families planning a summer road trip may be relieved to learn that they will not be paying more at the pump than they did last year, according to forecasts from the U.S. Energy Information Administration (EIA). The projected gas price this summer is $3.57 per gallon, almost the same as the $3.58 average per gallon price last summer.

The above graph shows actual prices from 2011 to 2013 and the projected price for 2014. The monthly retail price of gas can be analyzed by looking at the price components:

• The crude oil price, shown in blue, typically accounts for 2/3 the price of gasoline.
• The wholesale gasoline margin over crude, shown in brown, includes the cost of refining crude oil to produce gasoline.
• The retail gasoline margin over wholesale, shown in yellow, includes the cost of supplying gasoline to retail customers and includes state and federal taxes.

While $3.57 is a national average, drivers on the East Coast can expect to pay slightly less, at $3.53 per gallon.

U.S. Department of Energy to Create Gasoline Reserve to Prepare for Future Storms

The U.S. Department of Energy announced that it will create two reserves in the northeast region containing 500,000 gallons of gasoline each. The reserves will be located near New York Harbor and in a currently undisclosed location in New England. The reserves are meant to supply the region with gasoline in the event of a sudden or unexpected fuel supply disruption, such as the one that occurred in the aftermath of Hurricane Sandy.

In the days that followed Hurricane Sandy, the DOE made available, for the first time, supplies of heating oil from the Northeast Home Heating Oil Reserve. These reserves contain approximately one million barrels (half of which are stored in Groton, Connecticut). The DOE stated that building a gas reserve would complement the current heating oil reserve and enable a more secure and resilient energy infrastructure.

Major Acts of 2014

OLR's Major Acts of 2014 has been published. The report includes summaries intended to briefly describe the most significant, far-reaching, and publicly debated acts passed by the General Assembly in its 2014 regular session.

Topics include:

• Animals 
• Banks 
• Biennial Budget 
• Bonding 
• Business and Jobs 
• Children and Families 
• Consumer Protection 
• Criminal Justice 
• Driving under the Influence 
• Education and Schools 
• Energy and Utilities 
• Environment 
• Government Administration 
• Health Services 
• Higher Education 
• Housing 
• Insurance 
• Municipalities 
• Public Safety 
• Social Services 
• Transportation 
• Veterans and Service Members 

Hot Report: Bills Affecting Real Estate

OLR Report 2014-R-0139 answers the questions: What bills affecting real estate passed in the 2014 legislative session and became public acts? What bills affecting real estate were introduced and favorably reported out of committees, but did not pass?

We identified about 50 bills affecting real estate that were favorably reported out of legislative committees during the 2014 legislative session. In addition, the budget implementer, HB 5597, contains several provisions affecting real estate. For those bills that passed both chambers and became public acts, we provide a brief summary. For those that did not become public acts, we indicate the last action taken by the legislature

For more information, read the full report.

Training Program to Reduce Young Athlete Knee Injuries Shows Promising Results

In a recent report, The American Academy of Pediatrics noted an increase over the past two decades in the number of anterior cruciate ligament (ACL) injuries reported among young athletes. The ACL is one of the main ligaments that stabilizes the knee joint, particularly during activities such as jumping and pivoting.

The report attributed the rise in reported ACL injuries to a number of factors, including:

1. more children are participating in organized sports overall,
2. children are participating in high-intensity sports training earlier, and
3. advanced medical imaging and increased awareness are resulting in more ACL injury diagnoses.

According to the report, female adolescent athletes account for the greatest number of ACL injuries reported, but these young athletes can reduce their injury risk through neuromuscular training. Through this type of training, an athlete uses plyometrics (i.e., repetitive jumping exercises to develop lower body strength), with (1) balancing exercises, (2) strength training, (3) stretching, or (4) a combination of these to neurologically “preprogram” movement patterns that are safer and less likely to result in injury during intense athletic activity.

The report found that neuromuscular training appears to reduce the risk of ACL injuries in young female athletes by 72%.

OIG Report Examines Medicaid Offshore Outsourcing

A recent report from the U.S. Office of Inspector General identifies state Medicaid agencies that outsource administrative functions offshore and state regulations or other requirements pertaining to this practice. According to the report, no federal regulations prohibit offshore outsourcing of these functions and the Centers for Medicare and Medicaid Services (CMS) has issued guidance stating that Medicaid agencies may provide payments to contractors operating offshore for tasks that support Medicaid program administration. The Health Insurance Portability and Accountability Act (HIPAA) requires agencies to have agreements in place with contractors to protect personal health information.

Of the 56 agencies (including state, U.S. territory, and Washington D.C. agencies) surveyed in the report:

• 41 agencies (including Connecticut’s) do not outsource Medicaid administrative functions offshore and do not have requirements addressing this practice;
• nine agencies have requirements that allow it with few restrictions, and of those agencies, seven (including Massachusetts’ and Rhode Island’s) currently outsource some Medicaid administrative functions offshore;
• two agencies (New Jersey’s and Missouri’s) may outsource offshore only in limited circumstances; and
• four agencies (Arizona’s, California’s, Minnesota’s, and Ohio’s) have requirements prohibiting it.

Hot Report: Taxes and Fees on Utility Services

OLR Report 2014-R-0134 answers the question: What fees and state taxes apply to telecommunications (including cable TV and satellite TV) and energy utility services?

The report discusses the fees and taxes that apply specifically to companies providing these services. The companies also pay other taxes, e.g., the property tax, and typically pass these costs on to their customers although they do not itemize them on their bills.

There are several charges imposed on telecommunications services pursuant to federal and state law. In several cases, it is up to the telecommunications company to decide whether to pass these costs on to their customers.

The 6.35% sales tax applies to telecommunications services, which include those provided by telephone and other telecommunications companies, cable TV companies, and other satellite TV companies such as the DISH network.

The bulk of electric company bills consists of the generation service charge (the cost of the power itself) and transmission and distribution charges (the cost of shipping the power from the power plant to the substation serving a neighborhood and from the substation to the individual home or business, respectively).

Electric and natural gas services are subject to the gross earnings tax (CGS § 12-264 et seq.).

For more information, read the full report.

Is It Possible to Cut Crime and the Imprisonment Rate at the Same Time?

It can be done, according to a study by Pew. According to the study, the relationship between crime and imprisonment is complex, but over the past five years, the majority of states have reduced both at the same time. Connecticut is among the 10 states with the largest imprisonment rate decrease (19%). It also saw a 13% drop in crime rate.  Topping the list is California, with a 26% drop in imprisonment rate.  Also included in the top 10 are Colorado (17%), Massachusetts (20%), Rhode Island (19%), and New Jersey (16%). For more details, see the report here.

Study Finds Racial Disparities in Air Pollution Exposure

Minorities are exposed to an average of 38% more air pollution than whites, according to a University of Minnesota study recently reported in MINNPOST. Researchers used data from the Census Bureau and a “recently published high-resolution dataset of outdoor [nitrogen dioxide] concentrations.” Nitrogen dioxide (NO2) comes from vehicle exhaust and power plants.

The study ranked the states and Washington DC based on estimated average exposure difference between whites and nonwhites. Connecticut has the 10th greatest disparity among the states, behind New York (1), Rhode Island (6), and Massachusetts (7).  Maine and Vermont ranked among the low-disparity states. 

The study also ranked the nation’s urban areas by disparity, and Bridgeport, Danbury, Hartford, New Haven, and Waterbury were among the top 25 urban areas with the greatest disparities.
The researchers estimate that reducing nonwhite exposure to the same level as whites would result in 7,000 fewer per year deaths due to heart disease.

The study also found other disparities. NO2 concentrations were higher for (1) low-income groups than for higher income ones and (2) people with less than a high school education than for those with secondary schooling.

Hot Report: Information on the 2012 Federal Aviation Administration (FAA) Modernization and Reform Act

OLR Report 2014-R-0132 answers the questions: What are drones (unmanned aircraft systems (UAS))? How does the 2012 FAA Modernization and Reform Act affect them?

Simply put, a drone is an unmanned aerial vehicle controlled by an on-board computer or remotely by someone on the ground or in another vehicle. Although most often associated with military operations, drones have wide-ranging law enforcement and civilian applications, such as land surveillance, search and rescue, disaster response, and firefighting operations.

All drone operations are subject to regulation by FAA, which is charged with promulgating safety standards in the national air space (NAS). FAA issues certificates of authorization (COA) for limited drone activities in the NAS, after conducting case-by-case safety reviews. Commercial drones are prohibited, as are routine operations over densely populated areas.

Growing public sector and commercial interest in operating drones and increasing drone activities led Congress to pass the FAA Modernization and Reform Act in 2012 (PL 112-95, 126 Stat. 11). The act directs FAA to develop and implement a comprehensive plan to safely integrate civil drones into the NAS by September 2015 and implement new standards for public drone operators. The act includes provisions describing the plan and rules the agency must create to address integration issues, restricting FAA’s ability to regulate “model aircraft,” and requiring the creation of six drone test sites. It also includes mandates to streamline the COA process for government and public safety agencies.

As of February 2014, FAA had met only eight of the act’s 17 UAS requirements. FAA says it has “made progress meeting the act’s UAS provisions, [but] it has determined that it will not meet the September 2015 deadline for UAS integration due to a series of complex technological, regulatory, and managerial barriers” (U.S. Department of Transportation inspector general, Feb. 5, 2014, statement before the Committee on Transportation and Infrastructure, Subcommittee on Aviation).

Privacy advocates have expressed grave concerns about drones and the technology’s potential to infringe on Fourth Amendment rights. In a 2011 letter to FAA, the American Civil Liberties Union (ACLU) stated that “[w]e need a system of rules to ensure that we can enjoy the benefits of this technology without bringing us a large step closer to a “surveillance society” in which our every move is monitored, tracked, recorded, and scrutinized by the authorities” (Protecting Privacy From Aerial Surveillance, ACLU report, published December 2011).
For more information, read the full report.

Turning a Meatpacking Plant into a Farm

Urban farmers in Chicago are in the process of turning a meatpacking plant into a massive vertical, indoor farm. Operating in a 93,500-square foot building, the plan is to operate both nonprofit and for-profit farms in the space.

An anaerobic generator will heat the building and provide power, using food waste for fuel. Planners hope eventually to burn 10,000 tons of food waste per year, including food waste from surrounding areas, and become completely energy independent.

Another feature of the building will be the use of aquaponics – a combination of farming fish, in this case tilapia, and hydroponically growing vegetables. “The great thing about aquaponics is that it is an almost fully-closed ecosystem,” according to the plant’s website. Consequently, “it requires very little input (just some fish food and some micronutrients) and generates almost no waste.” 

The former meatpacking plant is located in the Back of the Yards neighborhood in the Chicago. Planners hope it will create 125 jobs.

More information about the farm, called The Plant, can be found on its FAQ page.

E-Cigarette Ingredient Poses Deadly Threat to Small Children

The New York Times recently reported on the danger “e-liquids,” i.e., liquid nicotine tinctured with flavors and chemicals, pose to young children. E-liquids are the main ingredients in e-cigarettes and, according to the article. They are also neurotoxins so powerful that as little as a teaspoon of the liquid, highly diluted, can kill a small child. The article notes that the e-liquids’ various colors and flavors such as chocolate and bubble gum may make them particularly appealing to children.

“It’s not a matter of if a child will be seriously poisoned or killed, it’s a matter of when,” according to Lee Cantrell, director of the San Diego division of the California Poison Control System and pharmacy professor at UC San Francisco.

The article also notes that the number of reported accidental poisonings linked to e-liquids in 2013 (1,351) represents a 300% increase since 2012.

Since the Food and Drug Administration does not regulate such liquids currently, the amount of nicotine levels in these liquids varies. According to the article, most range between 1.8% and 2.4%, which will make a child sick if ingested but will not generally be lethal. However, e-liquids with higher concentrations of nicotine (such as 7.2% or 10%) are available on the Internet and may be lethal for both children and adults. Less than one tablespoon of a 7.2% nicotine concentration e-liquid could kill an adult, according to Dr. Cantrell.

Hot Report: Master Teacher Certification

OLR Report 2014-R-0128 answers the questions: Has Connecticut addressed master teacher certification in recent legislation or law? Have any other states created this certificate?

Connecticut has a “distinguished educator designation,” which teachers who hold the highest level teaching certificate may voluntarily pursue. This designation is similar to other states’ master teacher certification programs because it honors teachers for classroom experience and post-graduate education, and it gives them the opportunity to pursue additional mentorship duties. However, unlike some states, it does not provide any additional pay to those who earn it.

In addition to this designation, established in PA 12-116, §§ 37 & 38, the General Assembly has considered other variations of master teacher programs. Over the past 25 years, legislation has proposed master teacher programs that select skilled educators to assist in evaluating and mentoring other classroom teachers. It also has proposed a program that extends master teachers’ certification validity for those who have demonstrated expertise in a particular subject area.

At least eight other states have some type of master teacher certification designation or program.
For more information, read the full report.

Changes Coming to Nutrition Labels Near You

The U.S. Food and Drug Administration (FDA) is proposing updates to the “Nutrition Facts” label found on most food packages. The changes involve such things as:

1. requiring information about “added sugars” and the amount of potassium and Vitamin D in food products;
2. removing “Calories from Fat” but keeping “Total Fat,” “Saturated Fat,” and “Trans Fat” on the labels;
3. requiring packaged food serving size, including drinks, to more accurately reflect how much people typically consume at a time; and
4. revising the labels’ design to more prominently display things like calories and serving sizes.

The images below compare a current nutrition label (left) with one incorporating the proposed changes (right).

Images: US FDA

These changes are currently available for public review and comment in the Federal Register here and here. 

Housing Choice Voucher Recipients Benefit Significantly from Automobile Access

The Urban Institute’s recent report “Driving to Opportunity” examines the link between access to cars and the effectiveness of federal housing choice vouchers (rental vouchers), which are designed to help low-income families leave high-poverty neighborhoods and reduce their dependence on public assistance.  The analysis found that families with access to cars, compared to families without access to cars (i.e., those dependent on public transportation), moved to neighborhoods with:

• lower concentrations of poverty,
• higher concentrations of employed adults,
• higher median rents and more owner-occupied housing,
• higher levels of school performance,
• greater access to open space,  and
• lower levels of cancer risk.

The report suggests greater coordination between housing and transportation policies could strengthen the impact of rental vouchers.  For example, combining rental vouchers with subsidies for car purchases, short-term car rental services, or rideshare services.

GPS Data Subject to Warrantless Search and Seizure

An article from Business Insider discusses law enforcement officers’ ability to obtain GPS data from a car or GPS manufacturer without a warrant. The officer may ask for the data and the car or GPS manufacturer may give them the information without the driver’s knowledge or consent.

William McGeveran, a law professor at the University of Minnesota, explained that law enforcement officers may acquire this information under the “third party doctrine.” Under this doctrine, the Fourth Amendment’s limit on warrantless searches and seizures does not prevent the government from accessing, without a warrant, information a person voluntarily provides to a third party.

According to a recent article in Atlantic Monthly, the third party doctrine originated from two U.S. Supreme Court decisions. In these cases, the Court stated that “a person has no legitimate expectation of privacy in information he voluntarily turns over to third parties” and the Fourth Amendment does not prohibit the third party from turning over that information to government authorities (U.S. v. Miller, 425 U.S. 435 (1976); Smith v. Maryland, 442 U.S. 375 (1979)).

According to a recent federal Government Accounting Office report, Ford, Chrysler, GM, Toyota, Honda, and Nissan track and store data they gather from people driving cars they manufactured. While none of the companies currently sell the data, customers usually aren’t aware of the data gathering and don’t have the ability to opt out of giving companies the data.