According to a recent New York Times article, President Obama signed legislation in April that prohibits Medicare from imprinting Social Security numbers (SSNs) on Medicare cards. Although most private insurers no longer use SSNs for identification purposes, Medicare has continued to imprint them on over 50 million benefit cards.
Congress appropriated $320 million over four years from Medicare’s two trust fund accounts to pay for the new cards. These accounts are funded by beneficiary premiums and payroll and other taxes, among other sources. Medicare administrators must start issuing cards with new identifiers within four years. They have an additional four years to reissue cards to current beneficiaries. (Presumably, SSNs will be replaced with a randomly generated identifier.)
According to the article, Congress passed the legislation in response to the increased use of electronic health records and rising prevalence of identity theft. Various federal officials and government watchdogs have called for the removal of SSNs from Medicare benefit cards for several years. For example, since 2004, the Government Accountability Office has urged officials to stop using SSNs as identifiers. And, in 2008, the Social Security inspector general called for the immediate removal of SSNs from Medicare cards, citing the unnecessary risk of identity theft.
April 29, 2015
New Report: Home Improvement Guaranty Fund
OLR Report 2015-R-0099 provides an overview of the Home Improvement Guaranty Fund, including fund-related statistics.
The Home Improvement Guaranty Fund was established in 1988 to reimburse consumers (up to $15,000 per claim) unable to recover losses suffered because the registered contractor failed to fulfill a contract valued over $200 (CGS § 20-432).
According to the Department of Consumer Protection, in the last five fiscal years, the guaranty fund was used to pay restitutions totaling $10,196,669.21 (1,297 consumer claims averaging approximately $7,900 each).
Click here to read the full report.
The Home Improvement Guaranty Fund was established in 1988 to reimburse consumers (up to $15,000 per claim) unable to recover losses suffered because the registered contractor failed to fulfill a contract valued over $200 (CGS § 20-432).
According to the Department of Consumer Protection, in the last five fiscal years, the guaranty fund was used to pay restitutions totaling $10,196,669.21 (1,297 consumer claims averaging approximately $7,900 each).
Click here to read the full report.
April 28, 2015
When High Prices in Toll Lanes Don’t Keep Traffic Moving, Cities Look for New Ways to Combat Congestion
Building high-occupancy toll (HOT) lanes—in which carpoolers ride free and single riders pay a toll, increasing with congestion, to use the lane—is a popular strategy for states and cities looking to pay for new roads and reduce congestion. But, according to a recent Governing article, HOT lanes don’t always keep traffic moving as quickly as states and cities may hope—even when toll prices are very high.
Georgia and Los Angeles County use HOT lanes, but traffic still moves slowly in peak times. In Los Angeles, traffic gets so heavy at peak hours (when tolls reach $15) that officials have to close HOT lanes to single riders for 15 minute periods to ensure room for carpoolers and buses. Even though the toll gets as high as $10, Georgia’s road and toll way authority’s executive director says that most people don’t complain because traffic on the toll lanes moves faster.
Although the high prices certainly help pay for the new lanes, they don’t seem to have fully accomplished the goal of getting fewer people to commute alone. In Northern Atlanta, the number of cars using the toll lanes per day has more than tripled since they opened in 2011, perhaps indicating that the new capacity has encouraged more people—not fewer— to drive alone to work.
To further reduce congestion, these regions are pursuing other strategies, such as:
Georgia and Los Angeles County use HOT lanes, but traffic still moves slowly in peak times. In Los Angeles, traffic gets so heavy at peak hours (when tolls reach $15) that officials have to close HOT lanes to single riders for 15 minute periods to ensure room for carpoolers and buses. Even though the toll gets as high as $10, Georgia’s road and toll way authority’s executive director says that most people don’t complain because traffic on the toll lanes moves faster.
Although the high prices certainly help pay for the new lanes, they don’t seem to have fully accomplished the goal of getting fewer people to commute alone. In Northern Atlanta, the number of cars using the toll lanes per day has more than tripled since they opened in 2011, perhaps indicating that the new capacity has encouraged more people—not fewer— to drive alone to work.
To further reduce congestion, these regions are pursuing other strategies, such as:
- Toll Credits—Los Angeles County offers $5 in toll credits to riders who use buses along the same route 32 times during rush hour;
- Targeting Heavy Users—Georgia reaches out to people who drive at peak times (and pay peak tolls) four to five times a week to encourage them to drive at less congested times or work from home; and
- Making Carpooling and Using Transit Easier—Georgia Commute Options, a Georgia Department of Transportation initiative, provides a ride matching service to help commuters find car and vanpools and offers cash and prizes to people who commute to work in ways other than driving alone.
Increase in Connecticut’s Osprey Population
According to a recent report from the Connecticut Audubon Society on the state’s osprey population, the number of documented osprey nests in Connecticut increased 176% from 2010 to 2014. Ospreys are large predatory raptors that feed mostly on fish and in 1970 there were only eight known nesting pairs in the state. The report credits the population increase to (1) a federal ban on the use of the pesticide DDT in 1972 and (2) volunteer efforts to build osprey platforms and watch over nests.
The 2014 data was acquired through a stewardship program called Osprey Nation, a statewide effort by the Connecticut Audubon Society and the Department of Energy and Environmental Protection. The program has two primary goals: supporting scientific osprey research and building a “citizen science program” to monitor osprey health. It also provides data on the health of the state’s (1) fish population and (2) coastal and inland waterways. The program relies on volunteers (stewards) to observe, gather, and record data; build and maintain nesting stations; and educate the public.
The 2014 data was acquired through a stewardship program called Osprey Nation, a statewide effort by the Connecticut Audubon Society and the Department of Energy and Environmental Protection. The program has two primary goals: supporting scientific osprey research and building a “citizen science program” to monitor osprey health. It also provides data on the health of the state’s (1) fish population and (2) coastal and inland waterways. The program relies on volunteers (stewards) to observe, gather, and record data; build and maintain nesting stations; and educate the public.
April 27, 2015
New Report: Sales and Use Tax Exemptions
OLR Report 2015-R-0104 provides a list of goods and services that are exempt from the state sales and use tax.
The state imposes sales and use taxes on retail sales of tangible personal property and services. It imposes a 6.35% tax, with some exceptions, on the retail sales of tangible personal property purchased (1) in Connecticut (i.e., sales tax) or (2) outside Connecticut for use here (i.e., use tax). These taxes apply to any item of tangible personal property, unless the law expressly exempts it.
The state similarly imposes a 6.35% tax, with some exceptions, on services provided by companies doing business in the state, regardless of whether they are located here. Unlike the statutes imposing the sales and use tax on tangible personal property, those imposing the tax on services specify the types of services subject to the tax and, within each type, the ones exempted from it.
To find out more about these tax exemptions, click here to read the full report.
The state imposes sales and use taxes on retail sales of tangible personal property and services. It imposes a 6.35% tax, with some exceptions, on the retail sales of tangible personal property purchased (1) in Connecticut (i.e., sales tax) or (2) outside Connecticut for use here (i.e., use tax). These taxes apply to any item of tangible personal property, unless the law expressly exempts it.
The state similarly imposes a 6.35% tax, with some exceptions, on services provided by companies doing business in the state, regardless of whether they are located here. Unlike the statutes imposing the sales and use tax on tangible personal property, those imposing the tax on services specify the types of services subject to the tax and, within each type, the ones exempted from it.
To find out more about these tax exemptions, click here to read the full report.
April 24, 2015
Sheep, Wool & Fiber Festival Reminder of Connecticut’s Agricultural Heritage
For Connecticut sheep farmers, with spring comes lambing, shearing, skirting (the process of removing dirty, coarse or contaminated sections of the fleece), and preparing the wool for spinning, weaving, knitting, and crocheting. The Connecticut Sheep Breeders Association, Inc. (CSBA), formed 122 years ago, is the organization that provides expertise and resources to help farmers with breeding, maintaining a healthy and productive flock, and marketing their products. On Saturday, April 25, it will be hosting the 106th Annual Sheep, Wool & Fiber Festival to showcase all the products and programs available to members and the general public.
Click here for more information about the festival.
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April 23, 2015
New Study Questions “Cycle of Violence”
As noted in a recent Science Magazine article, the theory that child abuse victims are more likely to perpetrate abuse as adults is commonly referred to as the “cycle of violence.” The article describes a recently completed longitudinal study that found little evidence to substantiate this theory when it comes to physical abuse, but it did find that neglect or sexual abuse victimization may be passed from one generation to the next.
Researchers began the study in 1986, and over nearly two decades, they tracked down over 900 adults who were victimized as children in the late 1960s and early 1970s. Based on interviews and child support services court documents, the researchers found little correlation between the adults who were physically abused as children and the likelihood, compared to the study’s control group, that they would physically abuse their own children. However, the researchers also found that the adults who were sexually abused, or neglected, as children were twice as likely to have done so with their offspring, compared to the control group.
In another article about the study in U.S. News and World Report, the study’s lead researcher, John Jay School of Criminology professor Cathy Spatz Widom, noted that the results were surprising and suggested that previous studies examining the cycle often looked at the childhood histories of parents accused of abuse and neglect. She explained, “The problem there is, you miss the parents who were abused but did not go on to have these issues.”
Widom’s findings are not conclusive, however, and some experts, such as Duke University psychology professor Kenneth Dodge, question the findings related to physical abuse. In the Science article, Dodge notes that physical abuse is often difficult to document, and child protective services may instead just document neglect when they suspect physical abuse.
Click here to read the full study (subscription required).
Researchers began the study in 1986, and over nearly two decades, they tracked down over 900 adults who were victimized as children in the late 1960s and early 1970s. Based on interviews and child support services court documents, the researchers found little correlation between the adults who were physically abused as children and the likelihood, compared to the study’s control group, that they would physically abuse their own children. However, the researchers also found that the adults who were sexually abused, or neglected, as children were twice as likely to have done so with their offspring, compared to the control group.
In another article about the study in U.S. News and World Report, the study’s lead researcher, John Jay School of Criminology professor Cathy Spatz Widom, noted that the results were surprising and suggested that previous studies examining the cycle often looked at the childhood histories of parents accused of abuse and neglect. She explained, “The problem there is, you miss the parents who were abused but did not go on to have these issues.”
Widom’s findings are not conclusive, however, and some experts, such as Duke University psychology professor Kenneth Dodge, question the findings related to physical abuse. In the Science article, Dodge notes that physical abuse is often difficult to document, and child protective services may instead just document neglect when they suspect physical abuse.
Click here to read the full study (subscription required).
April 22, 2015
New Report: Federally Required Customer Identification Program (CIP) for Banks
OLR Report 2015-R-0120 summarizes the major components of the customer identification program, which federal law requires banks to develop and implement.
The 2001 USA Patriot Act (P. L. 107-56) requires banks to verify, through a CIP, the identity of people wishing to open accounts with them. The CIP requirement was implemented by federal regulations in 2003. Under the regulations, banks must develop and implement a written CIP appropriate for its size and type of business that, at a minimum, includes procedures for:
To learn more about CIPs, click here to read the full report.
The 2001 USA Patriot Act (P. L. 107-56) requires banks to verify, through a CIP, the identity of people wishing to open accounts with them. The CIP requirement was implemented by federal regulations in 2003. Under the regulations, banks must develop and implement a written CIP appropriate for its size and type of business that, at a minimum, includes procedures for:
- performing risk-based identity verification using specified customer information,
- keeping records and notifying customers, and
- conducting comparisons with certain terrorist lists kept by the federal government.
To learn more about CIPs, click here to read the full report.
April 21, 2015
Habit-Forming Public Policy
When Paul O’Neill took over the Aluminum Company of America (Alcoa) in 1987, he immediately confused and shocked investors and shareholders by announcing that he was out to change specific workplace habits. Investors and shareholders were expecting the new CEO to tell them how he was going to use “alignment to achieve a win-win synergistic market advantage,” stated Charles Duhigg, author of The Power of Habit: Why We Do What We Do in Life and Business (2012).
The habits O’Neill wanted to change were those that lead to serious, catastrophic workplace accidents and, by the way, simultaneously drove up costs and decreased profits. But there was a method to his apparent madness. O’Neill wanted to transform Alcoa, yet he knew he could do so only if he instilled a set of habits that “would spread through the entire company.”
O’Neill gained that insight years earlier when he worked as a middle manager in the Veterans Administration. During that time, he recorded why certain projects succeeded while others failed and figured out that government programs weren’t driven by logical rules and priorities, but “bizarre institutional processes that, in many ways, operated like habits,” Duhigg wrote. “Bureaucrats and politicians, rather than making decisions, were responding to cues within automatic routines in order to get rewards such promotions or reelection. It was a habit loop—spread across thousands of people and billions of dollars.”
O’Neill’s insight and Duhigg’s analysis add up to a model for developing effective public policies, the kind that stick. As the graphic suggests, habits are routines triggered by cues and sustained by rewards. An economic development policy maker for example, might use the cue-routine-reward model to identify desirable business actions, such as hiring workers or expanding facilities; the cues that trigger these actions, such as getting a government contract or increased demand for a product or service; and the rewards that sustain the action, such as higher profits. Knowing how the cues, routines, and rewards align could help policy makers design tax credits and other incentives that affect the cues that trigger desired routines.
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O’Neill gained that insight years earlier when he worked as a middle manager in the Veterans Administration. During that time, he recorded why certain projects succeeded while others failed and figured out that government programs weren’t driven by logical rules and priorities, but “bizarre institutional processes that, in many ways, operated like habits,” Duhigg wrote. “Bureaucrats and politicians, rather than making decisions, were responding to cues within automatic routines in order to get rewards such promotions or reelection. It was a habit loop—spread across thousands of people and billions of dollars.”
O’Neill’s insight and Duhigg’s analysis add up to a model for developing effective public policies, the kind that stick. As the graphic suggests, habits are routines triggered by cues and sustained by rewards. An economic development policy maker for example, might use the cue-routine-reward model to identify desirable business actions, such as hiring workers or expanding facilities; the cues that trigger these actions, such as getting a government contract or increased demand for a product or service; and the rewards that sustain the action, such as higher profits. Knowing how the cues, routines, and rewards align could help policy makers design tax credits and other incentives that affect the cues that trigger desired routines.
April 20, 2015
New Report: Nonmedical Exemptions from Childhood Vaccinations
OLR Report 2015-R-0088 provides an overview of laws on nonmedical exemptions to childhood immunization requirements.
According to the National Conference on State Legislatures, while all states require children, all states’ school immunization laws grant exemptions for medical reasons. All states, except Mississippi and West Virginia, allow religious exemptions. Twenty states allow philosophical exemptions, including two New England states (Maine and Vermont). One of those 20 states (Missouri) allows philosophical exemptions for children in day care but not in K-12 school.
Connecticut allows nonmedical exemptions for religious reasons. Specifically, Connecticut law allows parents or guardians to opt out of vaccinating their children if they present a statement that immunization “would be contrary to the religious beliefs of such child” (CGS § 10-204a). The Department of Public Health has prepared a standard form for parents or guardians seeking an exemption.
Click here to read the full report.
According to the National Conference on State Legislatures, while all states require children, all states’ school immunization laws grant exemptions for medical reasons. All states, except Mississippi and West Virginia, allow religious exemptions. Twenty states allow philosophical exemptions, including two New England states (Maine and Vermont). One of those 20 states (Missouri) allows philosophical exemptions for children in day care but not in K-12 school.
Connecticut allows nonmedical exemptions for religious reasons. Specifically, Connecticut law allows parents or guardians to opt out of vaccinating their children if they present a statement that immunization “would be contrary to the religious beliefs of such child” (CGS § 10-204a). The Department of Public Health has prepared a standard form for parents or guardians seeking an exemption.
Click here to read the full report.
April 16, 2015
Hidden Consequences of Falling Behind on Student Loan Payments in Some States
Bloomburg Business reports that at least 22 states have laws on the books allowing authorities to revoke drivers’ or professional licenses when people fall behind on their student loan payments significantly. Some states have had such laws since the 1990s. In 2014, the National Consumer Law Center compiled a list of states with such laws that can be found here. Connecticut is not one of these states, but Massachusetts and New Jersey have such a punishment for borrowers who default on their loans.
In support of these laws, debt collectors assert that they have been valuable tools in collecting loan payments that were well past their due dates. They feel the laws work as a deterrent, explaining that guaranty agencies often issue license revocations only as a last resort and prefer to encourage borrowers to enroll in income-based repayment plans instead.
Opponents of such laws say that revoking someone’s driving or professional license takes away his or her ability to earn money to pay the loan back. They argue that the loss of a driver’s license is particularly crippling in states that lack public transportation options, leaving borrowers with no way to get to work.
In support of these laws, debt collectors assert that they have been valuable tools in collecting loan payments that were well past their due dates. They feel the laws work as a deterrent, explaining that guaranty agencies often issue license revocations only as a last resort and prefer to encourage borrowers to enroll in income-based repayment plans instead.
Opponents of such laws say that revoking someone’s driving or professional license takes away his or her ability to earn money to pay the loan back. They argue that the loss of a driver’s license is particularly crippling in states that lack public transportation options, leaving borrowers with no way to get to work.
April 15, 2015
New Report: Municipal Affordable Housing Stock
OLR Report 2015-R-0069 describes the Affordable Housing Land Use Appeals Procedure and lists the percent of each municipality’s housing stock that was affordable, as defined by CGS § 8-30g, in 2003, 2008, and 2013.
CGS § 8-30g creates the Affordable Housing Land Use Appeals Procedure, a set of rules that allows developers to appeal to Superior Court, local zoning and planning commission decisions denying affordable housing developments or approving them with costly conditions. In traditional zoning appeals, the developer must convince the court that the commission (i.e, municipality) acted illegally, arbitrarily, or abused its discretion by rejecting the proposed development. The procedure instead places the burden of proof on the municipality. A municipality must meet certain criteria for a court to uphold the local commission's decision. (For more information, see OLR Report 2013-R-0002.)
A developer can use the procedure only in those municipalities that the Department of Housing (DOH) determines do not have enough affordable housing stock to qualify for exemption from the procedure. A municipality is exempt from the procedure if at least 10% of its housing stock:
CGS § 8-30g creates the Affordable Housing Land Use Appeals Procedure, a set of rules that allows developers to appeal to Superior Court, local zoning and planning commission decisions denying affordable housing developments or approving them with costly conditions. In traditional zoning appeals, the developer must convince the court that the commission (i.e, municipality) acted illegally, arbitrarily, or abused its discretion by rejecting the proposed development. The procedure instead places the burden of proof on the municipality. A municipality must meet certain criteria for a court to uphold the local commission's decision. (For more information, see OLR Report 2013-R-0002.)
A developer can use the procedure only in those municipalities that the Department of Housing (DOH) determines do not have enough affordable housing stock to qualify for exemption from the procedure. A municipality is exempt from the procedure if at least 10% of its housing stock:
- is assisted housing,
- is currently financed by Connecticut Housing Finance Authority mortgages,
- is subject to deeds and conditions restricting the sale or rental to low-and moderate-income people, or
- consists of mobile homes or accessory apartments subject to similar deed restrictions.
Updated Federal Guidelines for Opioid Treatment Programs
The Substance Abuse and Mental Health Services Administration (SAMHSA) recently updated its Federal Guidelines for Opioid Treatment Programs.
The revised guidelines contain updated information on topics such as treatment of pregnant patients and patient withdrawal from medication assisted treatment. The revised guidelines also include new information on topics such as telemedicine, electronic health records, and prescription drug monitoring programs.
According to SAMHSA, the guidelines describe the agency’s expectation of how opioid treatment programs must meet requirements in federal regulations. SAMHSA first published the guidelines in 2001, and last updated them in 2007. In 2012, the agency convened a stakeholder panel to consider updates to the guidelines.
The revised guidelines contain updated information on topics such as treatment of pregnant patients and patient withdrawal from medication assisted treatment. The revised guidelines also include new information on topics such as telemedicine, electronic health records, and prescription drug monitoring programs.
According to SAMHSA, the guidelines describe the agency’s expectation of how opioid treatment programs must meet requirements in federal regulations. SAMHSA first published the guidelines in 2001, and last updated them in 2007. In 2012, the agency convened a stakeholder panel to consider updates to the guidelines.
April 14, 2015
The “Brontosaurus” May Be Back!
A recent New York Times (NYT) article describes a study of about 80 fossils of long-necked dinosaurs, called Diplodocidae, from museums all over the world, finding that there is evidence to bring back the name “Brontosaurus” (meaning “thunder lizard”) for one of these large plant-eating dinosaurs.
Decades ago, “Brontosaurus” was reclassified as Apatosaurus (meaning “deceptive lizard”) because people believed them to be the same and the latter was named first. According to the NYT article, the study’s authors conclude that the “Brontosaurus” and Apatosaurus are actually two different species and a specimen at the Yale Peabody Museum is a “Brontosaurus,” not an Apatosaurus as it is currently listed on the museum’s website.
In other recent dinosaur news, there is new evidence indicating that tyrannosaurs, the group of meat-eating dinosaurs that includes the Tyrannosaurus rex, may have been cannibals. It appears they used their teeth in intra-species combat and feeding.
Decades ago, “Brontosaurus” was reclassified as Apatosaurus (meaning “deceptive lizard”) because people believed them to be the same and the latter was named first. According to the NYT article, the study’s authors conclude that the “Brontosaurus” and Apatosaurus are actually two different species and a specimen at the Yale Peabody Museum is a “Brontosaurus,” not an Apatosaurus as it is currently listed on the museum’s website.
In other recent dinosaur news, there is new evidence indicating that tyrannosaurs, the group of meat-eating dinosaurs that includes the Tyrannosaurus rex, may have been cannibals. It appears they used their teeth in intra-species combat and feeding.
April 13, 2015
New OLR Report: Tolls in Connecticut
OLR report 2015-R-0048 answers several questions about tolling in Connecticut and the federal Value Pricing Pilot Program:
- What is the Value Pricing Pilot Program (VPPP)?
- Connecticut’s VPPP slot is “conditional.” What does that mean?
- What changes in state law must be made to implement tolls?
- Must Connecticut repay the federal government if it puts tolls back on I-95?
- How can the state use toll revenue?
April 10, 2015
OLR Report Highlights New Transportation Financing Method
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This fiscal strait partially explains why governments are looking for other financing methods, such as public-private partnerships and land value recapture (LVC), which is highlighted in a recent OLR report (2015-R-0101). As the report explains, LVC captures some of the increase in value that accrues to property near a transit facility by converting it into contributions, taxes, or fees. The report goes on to explain how LVC methods capture value and the challenges they face.
April 9, 2015
Are Teachers Biased against Girls When It Comes to Math?
An article on the Australian-based academic news website The Conversation recently summarized a study that found that some elementary school teachers graded boys’ math tests more favorably than girls’ math tests, affecting future grades and students’ decisions about whether to pursue science and math education.
The study measured teacher bias by tracking the test scores of nearly 3,000 students from sixth grade until high school graduation. The authors compared the scores given to students by teachers who knew the students’ sex against the scores given to the same students when no identifying information was revealed. According to the article, the study “identified that a worrying number of teachers gave boys higher math test results than girls of the same ability.”
The study also examined the pattern’s long-term effects, finding that “teachers’ biases favoring boys have an asymmetric effect by gender—positive effect on boys’ achievements and negative effect on girls’.” The study suggests that “teachers’ biased behavior at early stage of schooling have long run implications for occupational choices and earnings at adulthood, because enrollment in advanced courses in math and science in high school is a prerequisite for post-secondary schooling in engineering, computer science, and so on.”
The study measured teacher bias by tracking the test scores of nearly 3,000 students from sixth grade until high school graduation. The authors compared the scores given to students by teachers who knew the students’ sex against the scores given to the same students when no identifying information was revealed. According to the article, the study “identified that a worrying number of teachers gave boys higher math test results than girls of the same ability.”
The study also examined the pattern’s long-term effects, finding that “teachers’ biases favoring boys have an asymmetric effect by gender—positive effect on boys’ achievements and negative effect on girls’.” The study suggests that “teachers’ biased behavior at early stage of schooling have long run implications for occupational choices and earnings at adulthood, because enrollment in advanced courses in math and science in high school is a prerequisite for post-secondary schooling in engineering, computer science, and so on.”
April 8, 2015
New OLR Report Explains State Payments in Lieu of Taxes
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As the report explains, the formula reimburses municipalities for a portion of the revenue loss. The portion depends on the type of organization that owns or operates the property. “With certain exceptions, the[reimbursement] rates are 45% for state-owned property and 77% for college and hospital property.” But the state budget controls the actual reimbursement amounts. “...PILOTs are proportionately reduced if the state’s annual appropriation is not enough to fully fund them,” the report explains.
April 7, 2015
Maine's New Crowdfunding Law Gives Small Businesses Access to Larger Investment Pools
According to Maine’s Securities Office, "crowdfunding is an online money-raising strategy that began as a way for the public to donate small amounts of money, often through social networking websites, to help artists, musicians, filmmakers, and other creative people finance their projects." Maine Securities Corp. president Brad McCurtain recently told the Portland Press Herald that in 2014 crowdfunding websites raised more than $5 billion globally, 10 times the amount raised in 2009.
Many see crowdfunding as a way to give fledgling businesses access to larger investment pools. Maine took a step in that direction when the Securities Office adopted a rule implementing a 2014 law authorizing crowdfunding for business investments (Rule 523, implementing 2014 PL Chapter 452, effective January 1, 2015). According to the article, proponents hope the rule will stimulate the growth of small businesses by allowing them to acquire capital from a larger pool of investors. The article highlights the rule’s investment limits:
For more information on crowdfunding in Maine, read the full Press Herald article.
Many see crowdfunding as a way to give fledgling businesses access to larger investment pools. Maine took a step in that direction when the Securities Office adopted a rule implementing a 2014 law authorizing crowdfunding for business investments (Rule 523, implementing 2014 PL Chapter 452, effective January 1, 2015). According to the article, proponents hope the rule will stimulate the growth of small businesses by allowing them to acquire capital from a larger pool of investors. The article highlights the rule’s investment limits:
- $5,000 maximum per individual investor.
- $1 million maximum raised capital for each company in any rolling 12-month period.
- Convicted felons are prohibited from selling equity in their companies.
For more information on crowdfunding in Maine, read the full Press Herald article.
April 6, 2015
Is Genetically Altered Food Coming to Your Dinner Table?
A recent New York Times article discusses the controversy regarding genetically altered food. The federal Food and Drug Administration (FDA) stated that commercially planted non-browning apples and bruise-resistant potatoes were as safe and nutritious as their conventional counterparts, and the Agriculture Department approved these genetically altered fruits and vegetables for commercial planting after finding they did not harm other crops.
Nevertheless, consumer and environmental groups that opposed planting genetically modified crops are urging restaurants and food companies to not use them. Moreover, some farmers and suppliers of natural apples fear that the approval of “biotech” apples will spoil the wholesome image of the fruit. Finally, some opponents criticized the FDA’s review of the genetically engineered crops, arguing that the FDA did not thoroughly examine the data on genetically altered crops. The FDA, however, countered that its evaluations were thorough.
A related debate concerns whether genetically altered food must be labeled as such. Congress has not decided whether to require labels indicating that the food was genetically engineered or that the effects of such alterations are unknown. However, Connecticut law requires labeling, contingent on neighboring states adopting similar requirements.
Nevertheless, consumer and environmental groups that opposed planting genetically modified crops are urging restaurants and food companies to not use them. Moreover, some farmers and suppliers of natural apples fear that the approval of “biotech” apples will spoil the wholesome image of the fruit. Finally, some opponents criticized the FDA’s review of the genetically engineered crops, arguing that the FDA did not thoroughly examine the data on genetically altered crops. The FDA, however, countered that its evaluations were thorough.
A related debate concerns whether genetically altered food must be labeled as such. Congress has not decided whether to require labels indicating that the food was genetically engineered or that the effects of such alterations are unknown. However, Connecticut law requires labeling, contingent on neighboring states adopting similar requirements.
April 3, 2015
New Report: Mandatory Regulations Not Adopted
OLR Report 2015-R-0078 identifies regulations required by law (i.e., “mandatory regulations”) that agencies have not promulgated to date. This report partially updates OLR Report 2009-R-0218.
The Regulation Review Committee reports that, in connection with the December 2014 deadline, it received letters from five agencies. The letters indicated that the agencies have mandatory regulations covering seven subjects that they had not submitted to the committee for approval. It is unclear whether agencies that did not report to the committee may also have outstanding mandatory regulations.
Click here to read the full report.
By law, state agencies may be authorized or required to adopt regulations, and the Uniform Administrative Procedure Act (UAPA) governs, among other things, the regulation-adoption process (CGS § 4-166 et seq.). By December 1 annually, the UAPA requires each state agency to give the Regulation Review Committee a list of mandated regulations that, as of that date, it failed to either (1) submit to the committee for approval or (2) resubmit after the committee rejected them without
prejudice. By February 15 of the following year, the committee chairpersons must submit to the legislature a compiled list, by agency, of the outstanding mandated regulations (CGS § 4-171).
The Regulation Review Committee reports that, in connection with the December 2014 deadline, it received letters from five agencies. The letters indicated that the agencies have mandatory regulations covering seven subjects that they had not submitted to the committee for approval. It is unclear whether agencies that did not report to the committee may also have outstanding mandatory regulations.
Click here to read the full report.
April 2, 2015
Proposals for Free Community College
According to the National Conference of State Legislatures (NCSL), nearly 70% of all jobs will require some type of post-secondary training, certificate, or degree by 2020. With this in mind, President Obama and several states have proposed programs to provide low and no-cost tuition for community colleges.
Earlier this year, President Obama proposed making two years of community college free, which could save students an average of $3,800 in tuition. His proposal would create a federal-state partnership that increases federal funding to pay 75% of the average community college tuition and require states to cover the remaining 25%. President Obama’s proposal has been modeled after recent state legislation. Tennessee created a free community college program in 2014 and Oregon’s legislature recently passed a bill to study the viability and costs of providing free community college to its residents.
State legislators continue to focus on providing opportunities and access of all citizens to post-secondary opportunities. Almost every state offers and supports programs that help students earn college credits while in high school. These programs are offered at almost no cost and reduce the cost and encourage completion of earning a post-secondary credential.
For more information, see NCSL.
Earlier this year, President Obama proposed making two years of community college free, which could save students an average of $3,800 in tuition. His proposal would create a federal-state partnership that increases federal funding to pay 75% of the average community college tuition and require states to cover the remaining 25%. President Obama’s proposal has been modeled after recent state legislation. Tennessee created a free community college program in 2014 and Oregon’s legislature recently passed a bill to study the viability and costs of providing free community college to its residents.
State legislators continue to focus on providing opportunities and access of all citizens to post-secondary opportunities. Almost every state offers and supports programs that help students earn college credits while in high school. These programs are offered at almost no cost and reduce the cost and encourage completion of earning a post-secondary credential.
For more information, see NCSL.
April 1, 2015
New Report: Factors Behind Connecticut's High Electric Rates
OLR Report 2015-R-0108 (1) updates OLR Report 2008-R-0452 describing why Connecticut’s electric rates are higher than those in most other states and (2) describes measures taken by the legislature since 2008 to reduce electric costs in the short and long term.
Based on the latest available data from the U.S. Energy Information Administration, as of November 2014, Connecticut had the second highest average residential retail electric rates in the country. High rates are a regional phenomenon, and all six of the New England states plus New York are among the 10 states with the highest rates.
We are aware of no empirical analysis as to why Connecticut’s rates are so high. However, it appears that several factors that apply across New England and interact with each other are the primary causes.
Click here to learn more about these factors and read the full report.
Based on the latest available data from the U.S. Energy Information Administration, as of November 2014, Connecticut had the second highest average residential retail electric rates in the country. High rates are a regional phenomenon, and all six of the New England states plus New York are among the 10 states with the highest rates.
We are aware of no empirical analysis as to why Connecticut’s rates are so high. However, it appears that several factors that apply across New England and interact with each other are the primary causes.
Click here to learn more about these factors and read the full report.
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