Blog Page 94

5 Guiding Principles for Dealing with a Crisis

By
Jeffrey Gallagher
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Crisis Communication

A crisis can strike at any time and any place, and it can be more difficult than it used to be in today’s digital age.  The media wants to be “first and fast” in sharing it with their audience, and because of technology, everyone with a smartphone is a publisher with social media driving the public discussion.

Consider the following principles when dealing with a crisis:

  1. Be prepared to decide, act and communicate quickly.
  2. Be factual, straightforward and honest.
  3. Don’t guess, speculate or assume.
  4. Consider all audiences – not just the media.
  5. Expect changes and surprises.

Do you need help with a crisis facing your company?  Do you want to train your leaders and employees in how to deal with one in the future?  Contact the Michael Best Strategies Crisis Communications Advisor Jeff Gallagher to learn more about how they can help you out.

Election 2019: All’s Quiet on the Stateside Front… Mostly

By
Patrick Firth
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Energy

Ordinarily, the first Tuesday after November 1 is filled with a flurry of political excitement; after months of campaigning, exhausted campaigns and their candidates wait anxiously for the voters to decide who best deserves to be entrusted with high government office. This November may be a bit quieter, however. There are no federal elections this year, gubernatorial elections are taking place in only three states this year, and only four states’ legislatures are up for re-election.

Based on the offices that are open, and the candidates in each contest, the state-by-state energy outlook has the potential to shift dramatically based on the outcomes of a number of these elections.

The Governors’ Mansions

The gubernatorial races will be especially interesting to watch. In states that are usually considered Republican bastions, we are observing unusually competitive and electable Democratic candidates. The governorships of Kentucky, Louisiana and Mississippi – all states President Trump carried handily in 2016 – are all hotly contested this year.

In Kentucky, first-term Governor Matt Bevin (R) is facing-off against Kentucky Attorney General Andy Beshear. Governor Bevin supports an “all of the above” energy strategy. Specifically, he has been very active in the operations, and makeup, of the Kentucky Public Service Commission (KPSC), the regulating authority for the intrastate rates and services of electricity, natural gas, and water, among numerous other items, for the state of Kentucky.

Back in 2016, Governor Bevin ordered the reorganization of KPSC, eliminating 10 of the entity’s 85 positions and shifting engineers to the Energy and Environment Cabinet. His current challenger, AG Beshear, even spoke out against the shuffle at the time of the move. Beshear has been very active as well with KPSC. Over the past three years that Beshear has served as Kentucky’s attorney general, his office has intervened on exorbitantly-high utility rates and brought the issues before the KPSC twelve separate times. Kentucky comes in 40th out of 50 jurisdictions with the lowest cost of electricity.

During the next governor’s term, all of the members of the KPSC will see their terms expire. Whoever wins the governorship will have a major opportunity to dramatically shift the composition and direction of the KPSC’s membership and energy policies. Governor Bevin was recently ranked the least popular governor in the nation back in April 2019 and a late August internal poll by AG Beshear’s campaign showed the challenger ahead by 9 percentage points. Another Democratic Attorneys General Association poll from a week prior showed the same data. It should be noted that polls and popularity can change on a dime, especially as Election Day approaches, and that the only nonpartisan poll for the gubernatorial election in Kentucky shows Bevin in the lead.

In Mississippi, it’s an open race for the Governor’s Mansion as incumbent Governor Phil Bryant (R) is term-limited. Attorney General Jim Hood (D) and current Lieutenant Governor Tate Reeves (R) are the candidates from the two major political parties. After an investigation surrounding post-Hurricane Katrina gasoline price-gouging back in 2007, AG Hood settled with five major companies and announced a partnership with the Economics Department of Mississippi State University to conduct a gasoline market study. He also led Mississippi’s fight against British Petroleum after the Deepwater Horizon oil spill. The settlement led to Mississippi receiving almost $2.2 billion in damages from the oil company. Those specific examples aside, there’s a reason AG Hood has remained a popular elected official for so long – he’s moderate and compromising. His Republican opponent, Lt. Gov. Reeves, has been a steadfast ally for energy development and private investment in energy infrastructure. Over his career, he has worked to “exempt sales tax on power used in manufacturing, reduce the severance tax on oil & gas produced from horizontally drilled wells, and update the Energy Revolving Loan Fund, which allows the fund to be used for construction costs of energy infrastructure associated with development projects.” These projects have reflected his belief that, “economic growth relies on energy and environmental policy that finds balance.” He also publically opposed the Obama Administration’s Clean Power Plan in 2014.

In Louisiana, incumbent Governor John Bel Edwards (D) has spoken of his intent to grow the state’s oil and natural gas industries. That said, the governor has also publicly supported lawsuits against energy companies over coastal wetland losses and in 2018 alone, the state lost over 1,100 jobs in the oil & gas industry, according to data from the U.S. Bureau of Labor Statistics. Many believe that a better solution than suing to solve coastal wetland losses is to work alongside and cooperatively with industry experts to find a productive, sustainable solution. U.S. Representative Ralph Abraham (R), one of Edwards’ challengers, noted that the Edwards’ administration has ‘declared war’ on the oil and gas industry, while also noting it is one of Louisiana’s largest industries. Gov. John Bel Edwards, a Democrat, and Eddie Rispone, a Republican businessman, advanced to a runoff election for governor scheduled for November 16, 2019 after neither candidate received more than 50% of the vote on October 12. Governor Edwards received 46.6% of the vote and Eddie Rispone received 27.4%. Congressman Abraham finished in third place with 23.6% of the vote and does not qualify for the November 16 runoff election.

The State Legislatures

Seven out of the 99 legislative chambers in the United States are up for election this November and of those seven chambers, six are held by Republicans, while the New Jersey General Assembly is controlled by the Democrats. These legislative bodies up for re-election are in New Jersey, Virginia, Mississippi, and Louisiana. The legislative bodies of Mississippi and Louisiana, two states with major oil & gas footprints, will undoubtedly impact the direction of energy legislation that comes before their chambers – a partisan shift in any one of these two states’ chambers could bring pro-oil and gas energy legislation to a grinding halt. This is especially true in Louisiana where current Democratic Governor John Bel Edwards is fighting not just for his own re-election, but to flip the state legislature in his favor as well.

State legislatures have also been getting more involved in increasingly partisan energy fights, such as pipeline right-of-way issues and environmental regulation oversight. Turning purple Virginia blue in November could spell an end to any number of currently-proposed and future oil & gas pipeline projects. Even Republicans in the purple state are wary of these energy projects – Republican member of the VA House of Delegates Lee Ware introduced a bill in January that would have blocked the Atlantic Coast Pipeline from passing pipeline construction costs to the electric generating plants and their ratepayers.

Subtle changes in the wind are certainly blowing. Democrats, due to favorable political calendars, an unpopular Republican president, and abnormally strong candidates, may have a chance to significantly alter the political map across America this November and, in turn, the future outlook of statewide energy policies. Even if the likelihood of Democrats flipping governorships or state legislatures is slim, one cannot deny the shocking situation we find ourselves in: Republicans defending much of the historically loyal Deep South. Will political war chests have to be deployed in ‘safe Red’ areas, in turn leaving battleground constituencies open to the Democrats? Is this a historical anomaly, the signs of times changing, or inaccurate polling and an over-emphasized ‘blue ripple?’ It will certainly be interesting to see if these 2019 elections can be at all relied upon as a barometer for next year’s presidential election.

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Michael Best Strategies Public Affairs Team Trains Wisconsin Company in Media Matters

By
Jeffrey Gallagher
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Media Training

The Michael Best Strategies Public Affairs Advisor Jeff Gallagher traveled to Watertown, Wisconsin on September 24 to conduct a daylong media training session at Marquardt Management Services.  Marquardt Management Services manages communities where residents are assured quality care.  They have locations throughout Southern and Eastern Wisconsin.

Gallagher, along with the help of local public relations expert Patrick McSweeney, spent the first part of the day sharing with the group of Marquardt executives and employees how the media works.  This included looking at how reporters do their jobs in the digital and social media age.  The MBS team also offered specific steps on how to prepare for a media interview and strategies for success.

During the afternoon, the Marquardt employees split into two groups and practiced on-camera interviews with different mock scenarios.  Those scenarios ranged from a fire at a facility to an active shooter situation to dealing with negative social media.  Each employee got the chance to be both the reporter asking the questions and the interview subject answering the questions during the on-camera interviews.

The MBS team was honored to share their expertise with the Marquardt team and hope they will utilize the lessons learned at the training in their future interactions with the media.  Are you or your company interested in a similar media training session?  Contact the Michael Best Strategies Public Affairs Advisor Jeff Gallagher to learn more about how they can help you out.

Gov. Pritzker Announces Eight Appointments to Illinois Boards

By
Abby Walsh
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Illinois

Building on a strong team of diverse experts in their fields, Governor JB Pritzker announced the following individuals have agreed to serve in his administration:

ABRAHAM LINCOLN PRESIDENTIAL LIBRARY AND MUSEUM BOARD OF TRUSTEES

J. Steven Beckett will serve as the Abraham Lincoln Historian on the Abraham Lincoln Presidential Library and Museum Board of Trustees.* Beckett is a frequent lecturer on the law practices of Abraham Lincoln and is a board member the Abraham Lincoln Association. He previously chaired the Abraham Lincoln Presidential Library and Museum Advisory Board from 2012 to 2015. Beckett is a Practitioner-in-Residence and the former director of Trial Advocacy at the College of Law, and counsel to the Urbana firm, Beckett & Webber, P.C. that he founded in 1988. In his time at Beckett & Webber, P.C., Beckett focused on litigation and appeals, appearing in Federal Courts across the Midwest and the Illinois Supreme Court twice. Beckett is a graduate of the University of Illinois College of Law. He received awards from the Illinois Public Defenders Association and the Champaign County American Civil Liberties Union and served as president of the First Amendment Lawyers Association.

Jessica Harris will serve on the Abraham Lincoln Presidential Library and Museum Board of Trustees.* Harris currently serves as the Interim Provost for Inclusive Academic Excellence at Southern Illinois University, where she formerly served as Director of the Black Studies Program and Provost Fellow for Diversity and Inclusion. She previously worked as an associate and assistant professor in SIU’s Department of Historical Studies. She also worked with students as a lecturer at Cornell University and as an instructor at Ithaca College’s Pre-Freshman Summer Program. Harris has earned awards such as the Dillard University 40 Under 40, the SIUE Dr. Martin Luther King, Jr. Humanitarian Award and the SIUE Phenomenal Woman Award. She is a member of the American Association of Blacks in Higher Education, Association for the Study of African American Life and History and Association of Black Women Historians. Harris earned both her PhD and Master of Arts in history from Cornell University and her Bachelor of Arts from Dillard University.

Jason Lesniewicz will serve as a Cultural Tourism Expert on the Abraham Lincoln Presidential Library and Museum Board of Trustees.* Lesniewicz currently works as the Director of Cultural Tourism at Choose Chicago. In 13 years of work the in the cultural tourism industry, Lesniewicz has worked within Choose Chicago as the Cultural Tourism Manager for Neighborhoods and as Group Coordinator for the Chicago Neighborhood Tours Program. Previously, he served as a Senior Associate for the Chicago Office of Tourism and Culture. Additionally, Lesniewicz serves on the Chicago Cultural Alliance Board as the Co-Chair of the Fundraising and Strategic Partnerships Committee. He earned his Bachelor of Arts in History from the University of Illinois at Chicago.

Dan Monroe will serve as the Illinois Historian on the Abraham Lincoln Presidential Library and Museum Board of Trustees.* Currently, Monroe is Associate Professor and Chair of the Department of History and Political Science at Millikin University. In addition, he has taught at universities across Illinois, such as Bradley University and the University of Illinois at Urbana-Champaign. In 26 years of experience as a researcher, consultant and professor, Monroe has worked for the Illinois Historic Preservation Agency, Illinois Historical Survey of UIUC and the Abraham Lincoln Historical Digitization Project. He is a member of the Southern Historical Association, Abraham Lincoln Association, Illinois State Historical Society and Hemingway Society. Monroe earned his PhD from the University of Illinois at Urbana-Champaign, his Master of Science from Illinois State University and his Bachelor of Science from Bradley University.

Martin Sandoval, C.P.A., will serve as a Business Administration Expert on the Abraham Lincoln Presidential Library and Museum Board of Trustees.*  With over 25 years of experience in business, strategic planning and financial management, Sandoval is the founding partner of Compass Associates. He previously was a Director of Corporate Development of Sara Lee Corporation and did similar work for organizations such as the McDonald’s Corporation and Arthur Andersen. Sandoval is a member of the American Institute of Certified Public Accountants and the Illinois CPA Society, and he has also served as Vice President for the National Museum of Mexican Art, Treasurer of the Little Village Chamber of Commerce and Vice Chair of the Hispanic Alliance for Career Enhancement. Sandoval earned his Master of Science in Business Administration and Bachelor of Science in Commerce from DePaul University.

Melinda Spitzer-Johnston will serve as a Digitization, Conservation and Historic Preservation Expert on the Abraham Lincoln Presidential Library and Museum Board of Trustees.* Spitzer-Johnston is currently the Digital Media Assets Manager at Encyclopedia Britannica. She spent eight years prior at her namesake firm, Armstrong-Johnston LLC, where she served as a principal partner, archivist, historian and curator. She has also worked as the Curator of Visual and Digital Resources for the Harvard Law School Library’s Historical and Special Collections Division, and in a variety of roles for the Chicago History Museum, including Research Coordinator, Project Archivist and Curator. In addition, she served on the Illinois Historic Preservation Agency Board of Trustees and as a member of the Abraham Lincoln Presidential Library and Museum study panel. Spitzer-Johnston received her Master of Arts in American History from DePaul University and her Bachelor of Arts in American History from Northwestern University. She became a certified archivist in 2018.

WESTERN ILLINOIS UNIVERSITY BOARD OF TRUSTEES

Carin Stutz will serve on the Western Illinois University Board of Trustees.* Stutz most recently served as the EVP/COO of Red Robin overseeing operations across Canada and the United States. Previously, she served as President of McAlister’s Deli, as CEO and President of Cosi, and President of Global Business Development for Brinker International. Prior to joining Brinker, Stutz was Executive Vice President of Operations for Applebee’s International, the Pacific Division Vice President for Wendy’s International, served as Regional Operations Vice President for Sodexo, U.S.A., and was Vice President of Corporate Operations for NutriSystem, Inc. She is the former Chair of the Women’s Foodservice Forum and a member of the board of directors for Checkers and Rally’s Restaurants. Stutz holds a Bachelor of Science from Western Illinois University and Master of Business Administration from Mid-America Nazarene University.

Mark Twomey will serve on the Western Illinois University Board of Trustees.* Twomey currently serves as the Superintendent of Macomb School District #185. Twomey garnered national recognition for his work on the flipped classroom movement during his tenure as Superintendent of Havana School District #126. Previously, he has worked as a principal and teacher in various communities in Central and Southern Illinois, following 17 years in the plastics industry. Twomey received his Doctor of Education in Educational Leadership from Western Illinois University.   Through his doctoral studies, he created “The United States Rural School Safety Project,”  designed to create safer learning environments in rural and small school districts throughout the nation.  His work was published in an article in the December 2012 edition of the Law Enforcement Executive Forum Magazine.

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Crisis Communications: Is Your Company Prepared?

By
Jeffrey Gallagher
-
Crisis

We see them all the time in the news—a company facing a crisis.  It’s enough to send a shiver down the spine of any executive.  But what is truly a crisis?  And how should you respond?

A crisis is defined as any event that includes one or more of the following:

  • Something disastrous has happened – people have been hurt and/or there are fatalities; property has been severely damaged; and/or there is likely to become a dangerous or threatening situation.
  • Both mainstream media and social media are likely to become aware of an event and will report on it, comment on it and ask questions and/or bring attention to the situation.
  • Outside agencies such as law enforcement, fire departments, emergency medical services, regulatory or other local, state or federal response organizations have become or are most certainly likely to become involved in responding to the event.

Preparing for a crisis and responding to a crisis are both equally important.  As the legendary UCLA basketball coach John Wooden said, “Failure to prepare is preparing to fail.”  Having a plan in place will allow a company and its leaders respond quickly and efficiently.  The company should be focused on resolving the crisis and preserving the company’s reputation.

Is your company facing a crisis?  Or looking to put a plan in place and train employees to help respond to one in the future?  Contact Michael Best Strategies Crisis Communications Spokesperson Jeff Gallagher to learn more about how they can help you out.

Section 301 Tariff Actions: Where We Stand Today

By
Patrick Firth
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Trade War

With the September 1 implementation of a 15% tariff on products noted on List 4A, we would like to provide a general update on the current status of all Section 301 tariffs.

To this date, the United States Trade Representative (USTR) has released four lists of products imported from China that are subject or are proposed to be subject to an additional ad valorem tariff as part of the U.S. response to China’s unfair trade practice. instigated by the forced transfer of American technology and intellectual property.

On May 29, 2018, President Trump stated that USTR shall announce by June 15, 2018 the imposition of an additional duty of 25% on approximately $50 billion worth of Chinese imports containing industrially significant technologies, including those related to China’s “Made in China 2025” policy. The action came after an exhaustive Section 301 investigation in which USTR found that China’s acts, policies and practices related to technology transfer, intellectual property, and innovation are unreasonable, discriminatory, and a burden on U.S. commerce. On June 20, 2018, USTR provided notice seeking public comment on the tariff action in the form of two lists of product lines.

List 1: USTR first released a list of about $34 billion in Chinese imports, known as List 1, that are subject to a 25% tariff beginning July 6, 2018. It then released an opportunity for stakeholders to apply for exclusions from the tariff. Exclusions are retroactive to July 6 and are in effect from one year of when USTR announces the exclusion. These applications were due last fall and USTR is now working through over 11,000 applications for exclusion. It has released five lists of products excluded from the tariff and will release additional lists in the future.

Per a recent announcement from President Trump, these tariffs will increase from 25% to 30% on October 1

List 2: USTR then released a second list of $16 billion in Chinese imports, known as List 2, that are subject to a 25% tariff as of August 23, 2018. USTR released an exclusion process for this second list of products and it is currently reviewing the almost 3,000 applications submitted. The exclusion process for Lists 1 and 2 is identical. No exclusions have been granted yet for products on List 2.

Per a recent announcement from President Trump, these tariffs will increase from 25% to 30% on October 1.

List 3: On July 6, 2018, China responded to the initial action by imposing increased duties on goods of the U.S. In light of China’s response, in September 2018, USTR proposed a modification of the Section 301 investigation under Section 307 of the Trade Act. The modification was to take further action in the form of an additional 10% ad valorem tariff on products of China, known as List 3, with an annual trade value of approximately $200 billion. The tariff for products on List 3 were initially set by USTR at a rate of 10% and scheduled to increase to 25% on January 1, 2019. Unlike the products on Lists 1 and 2, USTR never provided an exclusion process for products on List 3. USTR stated an exclusion process would only be put in place if the tariff increased to 25%. The 25% increase action was then twice postponed in December and again in March.

On May 9, 2019, USTR officially notified the public of the increase in the tariff to 25% from 10% for products on List 3. This increase went into effect on May 10. As stated by USTR, List 3 goods exported before May 10 will remain subject to the 10% tariff if they enter the U.S. on or after May 10 and before June 15.

On June 21, 2019, USTR announced the exclusion process for products on List 3, which begins on June 30, 2019 and ends on September 30, 2019. USTR anticipates in the notice that they will receive 60,000 List 3 exclusion requests. Exclusions for products on List 3 will be effective as of September 24, 2018 and will extend for one year from the date USTR announces the exclusion.

Similar to Lists 1 and 2, USTR will evaluate three main factors to determine whether it will exclude a product on List 3 from the Section 301 tariff: whether you can source the product from anywhere outside of China, the economic harm on the requestor or others, and whether the product is part of China’s 2025 economic plan.

Per a recent announcement from President Trump, these tariffs will increase from 25% to 30% on October 1.

List 4: Lastly, USTR announced the next steps in the process of imposing an additional tariff of 10 percent on approximately $300 billion of Chinese imports. This ‘List 4’ was originally published on May 17, 2019, with public hearings concluding June 25, 2019.

Since President Trump’s August 1, 2019 tweet that the U.S. would finalize and impose a 10% tariff on List 4 to go into effect on September 1, a drastic policy shift occurred: some product lines were removed from the list and the list was split into two separate lists. List 4A still went into effect September 1, 2019 at the 10% rate. List 4B was delayed until December 15, 2019. Unlike the process utilized for List 3 when USTR imposed a 10 percent tariff and did not provide an exclusion process until the tariff was increased to 25 percent, Additionally, USTR announced it intends to conduct an exclusion process for these products subject to List 4’s 10 percent tariff.

List 4A tariffs at 15% went into effect on September 1.

List 4B tariffs are still scheduled to go into effect on December 15 at 15%.

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Wes Skiles Expands Role at Michael Best Strategies in Colorado

By
Michael Best Strategies
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Skiles_Wes-headshot-PR

DENVER, COLORADO – Michael Best Strategies announces Wes Skiles expands his role to Principal at the firm in Colorado. Skiles previously served as senior advisor.

In his new role, Skiles will be able to dedicate more of his time in assisting clients with legislative and regulatory issues as well as state and federal health policy issues that impact Colorado. Skiles recent work with Michael Best Strategies includes groundbreaking legislation evaluating the process health insurance plans go through to increase premiums in primary care and provide them with guidance on how to better invest healthcare dollars for care given in the right place, right time, and with the right provider.

“We have worked on a number of successful client projects with Wes in the past and are excited that he is bringing his knowledge of health policy and Colorado government to the Strategies team full-time,” said Rob Marchant, President at Michael Best Strategies.

Before joining Michael Best Strategies, Skiles spent nearly eight years at managed healthcare leader Kaiser Permanente Colorado, the first three years as the company’s in-house lobbyist at the Colorado State Legislature, and the last four years as Director of Government Relations. During his tenure, Skiles helped transform Kaiser’s approach to political advocacy from reactive to proactive and helped it shape health policy.

“I’m thrilled to be a part of Michael Best Strategies,” said Skiles. “I am grateful to have the opportunity to continue to build deeper relationships with the dynamic and hard-working Strategies team here in Colorado and make a big impact on behalf of our clients.”

Earlier in his career, Skiles worked in the Colorado State Legislature for more than five years, briefly serving as Press Secretary for the House Minority Office before becoming Legislative Director for the House Minority Leader where he served as primary political advisor and liaison to lobbyists, state agencies, officials, and the Office of the Governor.

Michael Best Strategies Successfully Lobbies for Electric Scooter Bill

By
Brandt Dietry
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Scooter

After Bird Scooters was sued by the City of Milwaukee for introducing electric ride-sharing scooters unannounced in June 2018, scooter rental laws were thrust into the Wisconsin spotlight. At the time, scooters were unregulated and were considered illegal. In September 2018, transportation-rental company Lime approached Michael Best Strategies about crafting and supporting a bill to regulate the scooters and allow companies like Lime to operate in the state. While Bird worked to reach settlement terms with Milwaukee, Lime and Michael Best Strategies got to work to remedy the state’s lack of an appropriate regulatory framework.

On Thursday, June 20th, the Wisconsin State Assembly approved a set of rules that would allow electric scooters on roads and sidewalks, 15 days after the Senate passed the bill. Last week, Governor Tony Evers signed the bill into law—only his 11th bill signing since he assumed office in January.  While the law leaves the door open for local governments to regulate the scooters—for example, banning them on sidewalks or roads with speed limits of more than 30 miles per hour—the measure is widely seen as an invitation for dockless scooter rental companies to begin operating in the state.

The governor’s signature marks a successful conclusion to Michael Best Strategies’ extensive lobbying efforts, which included collaboration with both the state legislature and local officials in Madison and Milwaukee, where the scooters are expected to be deployed. Lime’s representatives were pleased with the high-quality work of Mickey Foti, and John Zordani:

“Michael Best Strategies has been an invaluable partner and resource for our efforts. Their knowledge and expertise in government allowed us to build a smart and strategic plan of action to engage the key decision-makers and stakeholders. With rapid execution of our plan, Lime was able to quickly accomplish the passage of new legislation that will allow our business to flourish. This couldn’t have been accomplished without the team at Michael Best Strategies.”

-Nico Probst, Head of Midwest Government Affairs

While the scooters were previously considered illegal on Wisconsin roads, the bill, SB152, carved out an exemption for a “device weighing less than 100 pounds that has handlebars and an electric motor, is powered solely by the electric motor and human power, and has a maximum speed of not more than 20 miles per hour on a paved level surface when powered solely by the electric motor.” The laws regulating the new scooters have been compared to regulations governing bicycles.

State Senator Dale Kooyenga, a co-author of the bill, was pleased with the amount of local control that the bill allows. Cities can choose to run pilot programs, make some of their own rules, and ultimately decide whether they want to allow the scooters.  “I think there is a lot of momentum there,” said Kooyenga. “100% decision making on the local level. If they want to ban them, that’s their business. If they want to promote them, that’s their business. That’s up to the community for what they want to do.”

After the signing, Governor Evers touted the benefits of legalizing the scooters, saying, “Electric scooters can improve access to low-cost transportation options, actually reduce single-occupancy vehicle use and can serve as the first- and last-mile solution to residents and visitors in communities all across the state. This will also allow municipalities like Milwaukee to pass ordinances controlling the rental and operation of electric scooters and to (make) very specific requirements such as parking and sidewalk limitations necessary to operate in that jurisdiction.”

The scooters aren’t just a chance for riders to get around more efficiently. If the scooters end up replacing car trips, the environmental returns can be massive. While one kilowatt hour of energy can carry the average car a little less than a mile, it can propel an electric scooter for 80 miles.

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Rebuild Illinois

By
Stephanie Vojas
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Infrastructure

Illinois is going to see a boom in construction now that Rebuild Illinois, a $45 billion capital plan, has become law.  The House and Senate have both passed a comprehensive capital bill, which includes both vertical and horizontal, on a bipartisan roll call in the two-day overtime session. Rebuild Illinois will span the next 6 years.  It includes $33.2 billion for transportation; $3.5 billion for community colleges, state universities and local schools; $4.3 billion for state facilities; and $420 million for expansion of broadband Internet to underserved areas.

The Governor’s Office released the following summary of the key components of the projects:

Transportation: $33.2 billion

  • Over $14 billion for new roads in bridges:
    • $10.4 billion for state roads and bridges
    • $3.9 billion for local governments to rebuild their roads and bridges
  • Nearly $11 billion for IDOT’s Multi-Year Plan for roads and bridges
  • $4.7 billion for mass transit, including the RTA (CTA, Metra and Pace)
  • $1 billion for passenger rail, including Amtrak and other inter-city rail projects
  • $558 million for aeronautics
  • $492 million for the Chicago Region Environmental and Transportation Efficiency Program (CREATE)
  • $312 million for grade crossing protection
  • $150 million for ports
  • $679 million for other transportation projects

Education: $3.5 billion

  • $2.9 billion for higher education, including deferred maintenance and new projects at public universities, private universities and community colleges
  • $415 million for preK-12 school maintenance
  • $111 million for early childhood education

State Facilities: $4.4 billion

  • $4 billion for deferred maintenance and new projects at state facilities, such as the decrepit state crime lab
  • $350 million for the State Capitol

Environment/Conservation: $1 billion

  • $867 million for environmental, conservation and recreation projects, including:
    • $290 million for hazardous waste
    • $110 million for water revolving fund
    • $100 million for unsewered communities
    • $92 million for ecosystem restoration
    • $75 million for park and recreational facility construction
    • $40 million for well plugging
    • $35 million for land acquisition
    • $31 million for flood mitigation
    • $29 million for Illinois green infrastructure grants
    • $23 million for Open Space Land Acquisition and Development
    • $22 million for dam and waterway projects
    • $20 million for conservation reserve enhancement
  • $140 million for renewable energy projects, including solar and energy efficiency upgrades at state facilities and transportation electrification in low-income communities

Broadband Deployment: $420 million

  • $400 million for statewide broadband expansion
  • $20 million for Illinois Century Network

Healthcare and Human Services: $465 million

  • $200 million for affordable housing
  • $200 million for hospital and healthcare transformation
  • $50 million for community health centers
  • $15 million for human services grant program

Economic and Community Development: $1.8 billion

  • $594 million for community development
  • $425 million for economic development
  • $401 million for public infrastructure
  • $112 million for education and scientific facilities
  • $75 million for economically depressed areas
  • $51 million for museums
  • $50 million for libraries
  • $50 million for emerging technology enterprises
  • $50 million for the arts
  • $25 million for an apprenticeship program
  • $15 million for Minority Owned Business Program

The revenue to fund Rebuild Illinois comes from various sources, including:

  • Increase in the gas tax from 19 cents per gallon to 38 cents and indexes it to the Consumer Price Index
  • Increasing vehicle fees from the current $101 per year to $151
  • Electric vehicles would have a registration fee of $248 per year, instead of $34 every other year.
  • Rates for daily and hourly parking garages would see a 6 percent tax add-on and rates for monthly parking would incur a 9% tax
  • $23 billion in new bonding authority
  • Expand land-based gaming by adding six casinos in Illinois in Chicago, Rockford, Waukegan, South Suburbs, Danville, and Williamson County
  • Legalizes sports betting online, at casinos, and at sports stadiums
  • Allows gaming at racetracks
  • Increases the number of gaming machines at locations with video gaming from 5 to 6, increases the maximum bet, and allows for progressive jackpots up to $10,000.

The Governor signed Rebuild Illinois into law on Friday, June 28th surrounded by lawmakers from both parties. The full capital plan is contained in four pieces of legislation:  HB 62, SB 1939, HB 142, and SB 690.

Texas passes surprise medical billing legislation

By
Beth Cubriel
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Surprise Medical Billing

During the most recent Texas Legislative Session, SB 1264, addressing the practice of surprise medical bills, was adopted and signed by Governor Abbott , making Texas one of about a dozen states to pass such reform.

Patients become victims of surprise medical billing when they are treated in a hospital or emergency room that is either out of network or, if in their network, are treated by physicians who are not in network.  This almost always happens when an insured patient, during an emergency, visits an ER or is admitted to the hospital.  The patient focus is on diagnosis and recovery, as opposed to questioning providers about their network.  Once discharged, the patient receives a bill for thousands of dollars because they were treated by one or more out-of-network providers.

Efforts to address reform have gained momentum in the wake of a few high profile stories about surprise medical bills, including one from Texas when a patient, who had full coverage insurance, received a $109,000 medical bill after suffering a heart attack.  Because of the emergency, he was treated at an out of network hospital and was billed as such, although he had no choice in the matter.

The Texas legislation, sponsored by Senator Kelly Hancock, takes patients out of the negotiation process and creates an arbitration process by which insurance companies will negotiate fees with hospitals, doctors and labs.  Patients receiving emergency care will be responsible only for the in network cost of care.

In Texas, only 40% of patients will be affected by the new law, as 60% of Texans are covered by insurance plans that are regulated by the federal government.  These numbers are consistent nationally, requiring Congressional action to address this problem for a majority of Americans.

The Politics of Federal Reform

The November 2018 elections delivered a Democrat House and a Republican Senate, leaving many Washington observers to question the potential for any substantive policy changes in the next two years.

Fortunately, there is now reason to be optimistic for a federal answer to the issue of surprise medical billing.  In mid-May, a bipartisan duo of influential House members, Democrat Frank Pallone and Republican Greg Walden, distributed a draft bill that would keep patients from receiving unexpected charges following a hospital visit.  Specifically, the proposed legislation:

  • Requires health insurers to treat out-of-network emergency care as in network for their enrollee’s cost-sharing and out-of-pocket obligations. As a results, patients would pay the same out of pocket funds for both in and out of network emergency care.
  • Prohibits the practice of balance billing, the practice of sending a patient a bill charging the difference between the set price for a service and the health insurer reimbursement rate.
  • Requires insurers to base their out of network payments on the price the insurer pays to nearby in-network providers.
  • In states who have laws in place to address out-of-network billing, the federal law would not override the state law.

And in the Senate, Senator Bill Cassidy has introduced similar legislation, also with a bipartisan list of co-sponsors.   Specifically, the bill:

  • Ensures patients cannot be charged more than in-network rates for emergency services and covered non-emergency services.
  • Removes the patient entirely from any billing disputes and requires medical providers and health insurance plans to work out any disputed claims.
  • Creates a voluntary binding arbitration process as an incentive for providers and insurers to quickly resolve any disputed claims.
  • Requires health plans to provide a list of in-network providers, updated each month, so consumers know where they can seek treatment.

Meanwhile, Senator Lamar Alexander is pushing a bipartisan bill that is gaining momentum.  The Lower Health Care Costs Act of 2019 has already passed the Senate Health, Education, Labor and Pensions committee.  Alexander is asking Senate leadership for a vote this month.  His bill uses a benchmark rate to set costs for out of network care, a solution favored by most employers and insurers.  The alternative approach, as adopted in Texas, requires arbitration between the provider and insurer and is preferred by physicians.  In addition to addressing surprise medical bills, the legislation also expedites generic drug competition, eliminates middleman markups, raises the tobacco age to 21, and extends funding for community health centers, diabetes research and other important public health programs.

The proposed bills follows a public push by the White House to end the practice, signaling that this might be one issue that is of significant importance to leadership in both parties as well as the administration.  With a divided Congress, coupled with a White House that operates independently from its party’s apparatus, the coalition of support from these three entities is significant.

It might even be a coalition strong enough to take on a powerful lobby with varying positions on how to solve (or not) the problem.  Doctors and hospital groups are opposed to rate setting. Insurance companies and hospitals support a ban on balanced billing, while doctors make an argument for earning pay beyond insurance compensation.

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