#StatesideChat w/ @MarkShurtleff

By @StatesideAssoc

Stateside Chat is a new and exciting forum that was rolled-out earlier this week. The foundation of this new feature is a high-level conversation between Stateside’s Issue Managers and elected officials, state and local government affairs practitioners or other leaders in our industry. This content will be incorporated into our posts as a regular feature that will present a new and unique perspective with each conversation.

The first-ever Stateside Chat (used here as the Twitter hashtag for the forum, #StatesideChat) happened Monday afternoon between Utah Attorney General Mark Shurtleff (@MarkShurtleff) and Stateside President Constance Campanella. This initial #StatesideChat was setup as a means of introducing the medium and was met with an amazing response. Not only was the Attorney General gracious with his time, he was direct and thorough in answering the questions posed through the @StatesideAssoc Twitter account.  And, he was immediate and direct at responding to questions from journalists, citizens, constituents and others who had joined the conversation.

Twitter makes a great forum for discussing policy and politics with State elected leaders because of the benefits it offers. Not only can any of the participants jump into the conversation from wherever they are using a computer, tablet or smart phone, but anyone is welcome to watch and/or participate. Not only that, but the forum provides a lasting written record of what was discussed and can be accessed at any time.

These #StatesideChat dialogues will evolve over time as we find the best ways to highlight the unique insights, talents and experiences our guests will bring to the table. As a means of facilitating conversations amongst stakeholders in our industry, we want #StatesideChat to be as fruitful and relevant as possible for clients, other friends of Stateside Associates and interested members of the public.

Let us know who you’d like to see featured as a guest in an upcoming #StatesideChat by sending us a Tweet @StatesideAssoc or an email to gg@stateside.com.

What follows is the majority of the conversation, reordered and lightly edited to maintain the flow of the conversation for the reader. You can see this conversation in its entirety by searching Twitter for the hashtag #StatesideChat. Our next #StatesideChat will be held with the Minority Leader of the Arizona House of Representatives Chad Campbell (@RepCampbell) on March 12.

We thank Attorney General Mark Shurtleff (@MarkShurtleff) for being so generous with his time, and for his commitment to transparency in government.

Stateside Associates @StatesideAssoc

Welcome, General @MarkShurtleff and thanks for participating in our Inaugural #StatesideChat

Stateside Associates @StatesideAssoc

@MarkShurtleff I have some prepared questions for you and I’m sure I’ll have plenty of follow up questions as we go. #StatesideChat

Stateside Associates @StatesideAssoc

I know you’re a man of action, are you ready to get started? #StatesideChat

Mark Shurtleff @MarkShurtleff

@StatesideAssoc Fire away #StatesideChat

Stateside Associates @StatesideAssoc

You came in to office shortly after #RAGA was formed (the Republican Attorneys General Association, a part of RSLC). #StatesideChat

Stateside Associates @StatesideAssoc

What’s your advice to AG’s about balancing the partisan side of the job with policy and enforcement obligations? #StatesideChat

Mark Shurtleff @MarkShurtleff

@StatesideAssoc Rs & Ds will differ on role of Gov’t. I believe in less Gov’t & best consumer protection is free market. #StatesideChat

Stateside Associates @StatesideAssoc

@MarkShurtleff Right. But you still have to keep an eye on your partisan side and that causes controversy right? #statesidechat

Mark Shurtleff @MarkShurtleff

#StatesideChat Once in office collaborate effectively across party lines to enforce laws and protect the public & state & individual rights.

Mark Shurtleff @MarkShurtleff

#StatesideChat on key issues of role of govt, political values & standards do enter in. i.e. Rs felt Obamacare is unconstitutional & sued.

Stateside Associates @StatesideAssoc

@MarkShurtleff Mark, you ran for Senate and withdrew for personal reasons. Any office look good for the future? #statesidechat

Mark Shurtleff @MarkShurtleff

#StatesideChat I love public service. It has been a great honor to serve these 12 years. I’m going to step away for a time but WILL BE BACK!

Stateside Associates @StatesideAssoc

@MarkShurtleff GREAT! Good news. Now to something current. Immigration. Did your research re: Dred Scott influence you? #statesidechat

Mark Shurtleff @MarkShurtleff

#StatesideChat I spent 6 years researching US history on recognizing rights of all people under the law. Despite rough start US is special.

Mark Shurtleff @MarkShurtleff

#StatesideChat America has tried to be a place where we welcome all peoples who yearn for freedom & opportunity but must balance rule of law

Stateside Associates @StatesideAssoc

@MarkShurtleff Special how? What does American Exceptionalism mean to you? #statesidechat

Mark Shurtleff @MarkShurtleff

#StatesideChat American exceptionalism means we deal with current immigration in a just, pragmatic, fair, truthful, compassionate way.

Mark Shurtleff @MarkShurtleff

#StatesideChat And we tell the TRUTH about immigration & recognize the absolute economic need for migrant workers & positive contributions.

Mark Shurtleff @MarkShurtleff

#StatesideChat In America we are special in that we look at the worth of individuals & our Constitution protects rights of all who live here

Mark Shurtleff @MarkShurtleff

@StatesideAssoc #StatesideChat That’s not to say we don’t better secure border & FIX legal migration & naturalization. Feds have FAILED us!

Jeremy LaMont @Jeremy_LaMont

@StatesideAssoc Question for @MarkShurtleff What are practical challenges in enforcing current copyright law on the internet?#StatesideChat

Stateside Associates @StatesideAssoc

.@Jeremy_LaMont @MarkShurtleff Great question. Thanks for participating. AG Shurtleff? #statesidechat

Mark Shurtleff @MarkShurtleff

@Jeremy_LaMont #StatesideChat Difficulty lies in “worldwide” nature of Internet & ability of long arm of law to reach crooks offshore.

Mark Shurtleff @MarkShurtleff

@jeremy_lamont #StatesideChat But the law can & must stop those who allow & facilitate fraud & crime to be committed through their service.

ethanmillard @ethanmillard

@MarkShurtleff What parts of the new health care reform do you like? #statesidechat

Mark Shurtleff @MarkShurtleff

@ethanmillard #StatesideChat I like the protections ACA re Pre-existing conditions.

Mark Shurtleff @MarkShurtleff

@ethanmillard The Fed Dist Ct & 2nd Circuit agree w/GOP AGs that individual mandate of “Obamacare” is unconstitutional. #StatesideChat

ethanmillard @ethanmillard

@MarkShurtleff Do you think the mortgage fraud settlement was large enough? #statesidechat

Mark Shurtleff @MarkShurtleff

@ethanmillard #StatesideChat Yes the $25 Billion mortgage settlement w/ 5 largest banks is sufficient as a start & will stop bad conduct

Jeremy LaMont @Jeremy_LaMont

@StatesideAssoc Following the AG’s bank foreclosure settlement, will we pursue other mortgage holders like Fannie/Freddie? #statesidechat

Mark Shurtleff @MarkShurtleff

@Jeremy_LaMont #StatesideChat We are beginning settlement discussions with another 9 lenders which will cover 80% of mortgage market.

Stateside Associates @StatesideAssoc

@MarkShurtleff Remember Reagan’s 11th Commandment? What price will GOP pay for most negative nominating process ever? #statesidechat

Mark Shurtleff @MarkShurtleff

#StatesideChat I firmly believe in Reagan’s 11th. GOP presidential candidates’ brutal negative attacks are doing the party harm & helping Ds

hct3 @hctthree

@MarkShurtleff #StatesideChat Have you endorsed a candidate for the GOP nomination this year?

Mark Shurtleff @MarkShurtleff

@hctthree #StatesideChat Yes. I joined Romney’s team >1 year ago. He is best qualified to save our economy & only one who can beat Pres Obama

Stateside Associates @StatesideAssoc

@MarkShurtleff Last question from me. How do you get business leaders to not be paralyzed with fear re working with an AG? #statesidechat

Mark Shurtleff @MarkShurtleff

#StatesideChat AGs must connect w/ business & show we believe in free market & only use power to keep level playing field & punish bad acts

Mark Shurtleff @MarkShurtleff

@StatesideAssoc #StatesideChat America is great today because of two equal pillars: Rule of Law & Free Market. State AGs stand between.

Mark Shurtleff @MarkShurtleff

@StatesideAssoc #StatesideChat JUSTICE guaranteed by Constitution requires AGs equally balance rights, laws, duties, penalties & liberties.

Stateside Associates @StatesideAssoc

@MarkShurtleff And business needs to inform and innovate and be good actors. Thank you, General Shurtleff! #statesidechat

Steve Arthur @stateGRguy

@MarkShurtleff Any thoughts on a federal balanced budget amendment passing? #Statesidechat

Mark Shurtleff @MarkShurtleff

@ethanmillard #StatesideChat Yes @ if that bat has the law & Constitution @ its core, I’ll swing up & away with all my might! TY 4 engaging

Mark Shurtleff @MarkShurtleff

@stateGRguy #StatesideChat Future success of our nation requires BB Amendment but w/Dems controlling Senate, it won’t happen.

Jeremy LaMont @Jeremy_LaMont

@MarkShurtleff Thanks for the opportunity to engage. More people would get involved with their gov if it was this accessible. #StatesideChat

Mark Shurtleff @MarkShurtleff

#StatesideChat Looks like we’re done. I love Twitter & other new media! Gives me chance to connect directly with people. Let’s do it again.

Steve Arthur @stateGRguy

@MarkShurtleff #StatesideChat Thank you for taking the time for this chat. It is much appreciated.

Mark Shurtleff @MarkShurtleff

@StatesideAssoc Thanks for setting up this great #StatesideChat & giving me chance to engage directly with the people.

An Early Look at the 2012 Legislative Session

By Joshua Veverka, Vice President

Over the course of the past month Stateside Associates professionals interviewed contacts in all 50 states to get a sense of the top issues that will face lawmakers in the coming year.

With state budget debates looming and a busy election cycle serving as the backdrop for the 2012 legislative session, we provide you this list as a preview of some of the issues expected to dominate agendas and headlines in 2012.

Please note that next year is the second year of the biennium for most state legislatures—only New Jersey and Virginia start their biennium in even years. Twenty-seven states and Puerto Rico allow for at least some legislation to carry over from the 2011 session into 2012. Four states (Montana, Nevada, North Dakota and Texas) will not hold regularly scheduled sessions.

While the issues described herein will dominate the dockets of state legislatures next year, this list is far from exhaustive. The wrangling for early primaries and the focus on the presidential election will likely lead to electoral reforms cropping up in statehouses. Issues surrounding labor and public employee unions, such as pension reform and collective bargaining, will certainly be discussed in the wake of the vocal debates in Wisconsin, Ohio and New Jersey.  Public safety and the environment issues are always prevalent, and technological advances spur new legislative initiatives every few months.

Legislative Elections

In the 50 states 86 of the 99 total legislative chambers will be holding elections, in which 81% of all state legislative seats will be considered. The partisan splits in chambers in more than half of states, ten or fewer seats separate the majority from the minority. Even though party control is not expected to change in the majority of states, a presidential election and redrawn legislative districts provide little reassurance when it comes to the balance of power within and across states. When it comes to campaign issues, expect legislators to focus pull out issues popular with both Democratic and Republican constituencies meant to excite each party’s base.

Budgets

After several years of deep cuts, state budget situations are showing signs of recovery, but remain significant effects from the recession remain. According to the National Conference of State Legislatures (NCSL), FY 2012 marks the fourth consecutive period that states have faced significant mismatches between revenues and spending. After lengthy budget debates in the 2011 session only New Hampshire and Washington project deficits at the end of FY 2012.

But state budget experts are still very worried about the situation. The budget projections used by states are based on tax collection rates that continue to lag behind expected tax revenues. Stimulus money is gone. Clever accounting can only push off costs for so many years. More than 20 states are anticipating a budget gap for FY 2013 and FY 2014 and all projections show this number growing in the coming years. Therefore, the 2012 legislative sessions will be marked by sharp budgetary battles in which legislators will be forced to reform state government, continue cost cutting and/or increase revenue.

Economic Development and Job Growth

Numerous states have seen jobless rates continue to climb, including states that have traditionally outperformed the rest of the country in the South and the West. Legislators in at least 15 states, including Arizona, Florida, Georgia, Louisiana, Mississippi and Utah have indicated that job growth and economic development will be the centerpiece of the next session. Legislators are expected to advocate several priority proposals in this regard including manufacturing facility development and modernization incentives, small business financing programs and financial incentives for job creation. Tax credits and incentives for hiring unemployed residents were approved in states like Alabama, Florida and Maryland in the 2011 session and many of the states mentioned above will consider similar legislation in 2012.

Education

Education funding and reform is a priority for lawmakers every year. One trend on the education front is the effort by states to pull away from federal education mandates. Eight states have indicated an intention to pursue waivers from the federal “No Child Left Behind” law. The new policy announced by the President last month is that in order to receive these waivers states will need to develop and implement certain standards for math and reading, create systems to measure school performance and develop teacher and principal evaluation programs. All this will take place during the 2012 session—lawmakers will approach public education with even less funding while trying to perform at a higher level.

Energy

The hot energy issues next year will be the plans that propose increased development of energy resources while aiming to develop future energy transmission corridors and other infrastructure. In the 2011 session three in every five states considered energy transmission language. The number of states tackling energy will likely increase in next year’s session—legislators in more than 25 states have noted energy issues as a major priority for 2012.

No energy proposal will be one-size fits all. The focus of any energy legislation will depend on the specific energy issues at play in each state. Transmission line deployment is a big issue in Western states like Wyoming and Montana. Pipeline development and hydro-fracking regulations will dominate the oil and natural gas discussions in states throughout the Marcellus Shale region and in Southern and Western States. Alternative and renewable energy sources will be discussed in states throughout the country, including in Maryland where Governor O’Malley (D) is in favor of an off-shore wind energy project.

Immigration Reform

Although state legislatures considered more than 240 immigration-related measures in 2011, only 10 states enacted legislation. Despite the plethora of bills considered, lawmakers have been hesitant to expend political capital on immigration reform until federal challenges to state immigration reform attempts are finalized. Until that happens the discord between the federal government and states on immigration policy will continue to set the tone for immigration efforts throughout the 2012 session.

While a federally-driven comprehensive immigration reform package is possible, it’s more likely we’ll see one or more bills narrowly targeting employment and the electronic verification of workers.

One development that will make states more willing to tackle immigration measures was a recent ruling from U.S. District Judge Sharon Blackburn to allow much of Alabama’s H.B. 56 to take effect. This ruling, along with previous rulings in Arizona and Georgia, may start to provide a roadmap for other states to follow.

Medicaid

Health care reform and funding for state Medicaid programs are always a priority issue in the states. Add to that the fact that revenue growth is not expected to keep pace with anticipated increases in Medicaid costs mandated by federal health care changes. To defray these costs, states will look to increase utilization of Medicaid managed care in place of traditional fee for service plans. At least 19 states decided to expand Medicaid managed care in 2011 and nearly all states will continue to consider additional proposals as they prepare for the projected addition of 16 million adults to the Medicaid rolls by 2014.

Redistricting

Only the four states with elections this calendar year (Louisiana, Mississippi, New Jersey and Virginia) were required to have redistricting completed this year. All four were approved in time for elections to take place on-time, but not without legal challenges. The deadlines for the other 46 states to finalize their maps are before state primary and general elections are held next year. While a number of other states have already redrawn districts, the threat of legal challenge have been ubiquitous in almost every case. Several legislatures have scheduled special sessions through the remainder o the year to tackle redistricting, but expect the debate to carry-over well into next year. The closer to a regularly scheduled election a given state redistricting battle gets, the more noteworthy an issue redistricting will become.

Tax Expansion and “Reform”

Legislators are wary of tax increases in good times—broadening revenues by raising taxes during an economic slump becomes a very hot-button issue. According to NCSL, 2011 marked the first year in the last ten that states reported lowering taxes more than they increased them. While the numbers may have been skewed by some large cuts or by the expiration of few temporary tax hikes, it demonstrates the pressure legislators feel when it comes to raising taxes.

Corporate tax rates have been cut in 20 states since the year began and 12 states lowered general sales tax rates. To make up for lost revenue from these and future tax cuts, states will get creative in identifying revenue streams by reforming business taxes, reducing or eliminating certain credits and exemptions and expanding the sales tax base.

One of the visible efforts taking hold is the move by many states to collect sales taxes from online retailers. Internet sales taxes have been a target for states for a number of years and its lean economic times that increase pressure to pursue it as a possible new revenue stream. Lawmakers in 15 states considered “Amazon Tax” style language this year. Numerous other states examined different approaches to capture this revenue. The legislation that passed in California, coupled with the recent agreement between the state and Amazon to begin collecting online sales taxes in 2013, may serve as a striking model for action elsewhere.

Despite only passing in five states, bills to the increase the taxes levied on alcohol and tobacco products were considered in 43 states this year. In addition, policymakers in nearly half of all states attempted to tax foods and beverages that are deemed to lack nutritional value.  Ostensibly designed to promote health, the taxes are earmarked to fund the healthy lifestyle and obesity prevention programs that have become a priority across the country.

An Overhaul for the National Governors’ Association

By Mark D. Anderson, Esq., Senior Vice President

The National Governors’ Association (NGA) concluded its Annual Meeting July 17 in Salt Lake City, Utah. Marking a dramatic change in their process, the Governors allowed most of their existing policies to sunset and unveiled an entirely new policy process for the organization.  This complete revamping is intended to breathe life into the consensus-based policy process that had previously constrained the organization’s ability to lobby effectively.

The new process will consist of three types of policy. Executive Committee Policy will be developed before each session of Congress, and it will set forth the issues on which the Governors would like the NGA to lobby Congress.  These priority issues for the NGA will be developed in conjunction with the substantive committee leadership.

The substantive committees will then develop their own Committee Policies that will be aligned with the Executive Committee Policy. This process will occur following the development of the Executive Committee Policy until the next session of Congress. The purpose of the Committee Policies is to offer greater specificity to the broad priority issues identified in the Executive Committee Policy.

Finally, Permanent Policy will be developed to provide overarching principles on issues such as unfunded mandates and states’ rights. This Policy will be developed by the Executive Committee.

Instead of a continuous process of developing policies at the Winter and Annual meetings and either sunsetting or reauthorizing them two years later, the policy process will now be tied to the Congressional calendar.  From the Annual Meeting in July until early October, NGA staff will meet with Governors to determine their priorities for the upcoming session of Congress.  In early October, the Executive Committee and the leadership of the substantive committees will meet in Washington D.C. to develop the Executive Committee Policy. They will then be able to lobby Congress based on this Executive Committee Policy.

From October until the end of the year, the substantive committees will develop Committee Policies for adoption on an interim basis at the NGA Winter Meeting in February in Washington D.C. In January, the substantive committees will begin developing advocacy campaigns, and no additional policy will be developed.  As a result, the focus of the Annual Meeting will be on advocacy instead of policy.

The intention of the organization is clear—to become a more effective advocate for the Governors and avoid wasting time discussing policy positions on issues that the Governors cannot agree upon. What issues do you think the Governors will agree to address, and which otherwise high priority issues do you think will fall by the wayside?  

By Mark D. Anderson, Esq., Senior Vice President