Category Archives: Nevada politics

The Great Annuity Bundle Bungle: AB 360

banker 2 The Financialists are at play in the current session of the Nevada Assembled Wisdom, with the support of Assemblyman David Gardner (R-NV9) and his AB 360 which will be heard in the Assembly Government Affairs committee today.  Here’s the summary:

“This bill: (1) requires a program for deferred compensation that is made available by the State or the Board of Regents to offer an employee at least five investment options to choose from; (2) provides that any plan authorized by 26 U.S.C. § 403(b) or 457 must offer at least two investment options consisting of fixed or fixed index annuities and at least two securities investment options offered by different investment management companies; and (3) provides that a third-party administrator of a program for deferred compensation must use an open and competitive request for proposals process when selecting investment options for the program.”

Sounds techy?  This link will take you to the UNS page explaining the supplementary (and voluntary) retirement programs currently offered by the institutions of higher education in Nevada.  There are two “record keepers” for voluntary retirement programs: ING and Hartford; and, there are also plans separated from these two offered by TIAA CREF, Valic, and Fidelity.  So, why would the University System have to offer five, including “fixed or fixed index annuities?

First, what’s a fixed index annuity?  The SEC explains the forms currently available:

“There are generally three types of annuities — fixed, indexed, and variable. In a fixed annuity, the insurance company agrees to pay you no less than a specified rate of interest during the time that your account is growing. The insurance company also agrees that the periodic payments will be a specified amount per dollar in your account. These periodic payments may last for a definite period, such as 20 years, or an indefinite period, such as your lifetime or the lifetime of you and your spouse.

In an indexed annuity, the insurance company credits you with a return that is based on changes in an index, such as the S&P 500 Composite Stock Price Index. Indexed annuity contracts also provide that the contract value will be no less than a specified minimum, regardless of index performance.

In a variable annuity, you can choose to invest your purchase payments from among a range of different investment options, typically mutual funds. The rate of return on your purchase payments, and the amount of the periodic payments you eventually receive, will vary depending on the performance of the investment options you have selected.”

So, what could possibly go wrong?  There are several reasons why annuities aren’t all they are cracked up to be.   First, we ought to remember that annuities are forms of insurance, and are regulated as insurance policies and NOT like securities.  For example, with fixed or fixed index annuities there aren’t the disclosure requirements which are in place for investments in securities.  The individual purchasing the annuity is on his or her own to figure out the fees, the comparative performance, and even how the money is being invested. [Kiplinger]   Thinking about fixed index securities? Think again.

FINRA issued an “alert” regarding those “Fixed Index,” or sometimes called “Equity Indexed” annuities (pdf)

“Sales of equity-indexed annuities (EIAs) have grown considerably in recent years. Although one insurance company at one time included the word “simple” in the name of their product, EIAs are anything but easy to understand. One of the most confusing features of an EIA is the method used to calculate the gain in the index to which the annuity is linked. To make matters worse, there is not one, but several different indexing methods. Because of the variety and complexity of the methods used to credit interest, investors will find it difficult to compare one EIA to another.” (emphasis added)

If a person isn’t knowledgeable and comfortable with terms like “ratchet” indexing, or “high water mark,” or “point to point” indexing methods, then the session with the salesperson will be (a) quite long or (b) really confusing.  The salesmanship is an important element, and leads us to the second thing that could go wrong.  Did we explain that because annuities are lightly regulated, unlike equities, that the commissions for selling and managing annuities are in the really high range – like around 6%? [Orman

So, with an almost unregulated product, the opacity of which is nearly legendary, and the fees are some of the highest in the business, why require the University System to offer them?

Because the whole business in annuities goes back to the Romans, but the recent interest has more to do with insurance companies trying to shave off a bit of the money that was going toward money market accounts  in the late 1980s and early 1990s.  And, what the salesman is telling the potential buyer doesn’t usually include: (1) The high costs and fees; (2) The illiquidity (for ‘premature’ distribution; (3) The complexity of the product – remember it’s really hard to compare products; and (4) The taxes, “All withdrawals received from an annuity contract that are not considered to be a return of principal are taxed as ordinary income, regardless of the holding period of the contract (see below). There is no chance to qualify for capital gains treatment.” [Investopedia]

Why AB 360? Perhaps because somewhere out there in Nevada there are insurance companies still seeking to pick off investors who might otherwise sign up for retirement plans associated with the equities or money market sectors – who are ripe for the picking.

If a reader still isn’t sure why DB is opposed to this bit of legislation designed to enhance the bottoms (and bottom lines) of the insurance business, then I’d recommend “Beware the pitch for indexed annuities,” Reuters 2010; and,  “Annuities are not bought, they are sold,” from Forbes 2012; and, “The low down on equity indexed annuities, “ Bankrate.

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Filed under financial regulation, Nevada economy, Nevada legislature, Nevada politics, public employees

The Bundy Boys Join the Circus

AB 408

Remember the Bundy Boys?  Wonkette hasn’t forgotten the Fiore Forays into governmental mismanagement, nor have too many other people.  Now, the flags are flying again, for Freedumb!, in the form of AB 408, a singularly silly bill put forth by the usual group of Tea Partying Fanatics: Assemblywomen Fiore, Dooling, Shelton, Titus, and Seaman. Yes, it’s Ladies’ Day for AB 408, with some fellows tossed in as co-sponsors.  The ladies would like to kick the Feds out of Nevada:

“AN ACT relating to public lands; prohibiting the Federal Government from owning or regulating certain public lands or the right to use public waters; requiring the State Land Registrar to adopt regulations that provide for the appropriation and registration of grazing, logging, mineral development or other beneficial use rights on public lands; requiring the State Land Registrar to sell permits for grazing, logging, mineral development or other beneficial uses on public lands for which such rights are not registered and appropriated; requiring the board of county commissioners of each county to impose a tax on profits from the beneficial use of public lands;…”

Translation: Any rancher who doesn’t want to pay grazing fees for the use of public lands doesn’t have to.  And, we can go one step further – any mining company or logging enterprise can have the State Land Registrar sell off Nevada’s minerals and timber resources at will.  It’s privatization, as they say, on steroids.

What the Tea Bag Biddies seem to have forgotten is that there are other people using those lands too – not just the likes of Cliven “I want to tell you one more thing I know about The Negro” Bundy – and they aren’t hikers and tree huggers, they’re other ranchers.   If the Bundy ilk are allowed to over-graze range lands the land isn’t just Bundy’s problem, it becomes a problem for other ranching operations in the area which might want to use the land eventually.  This isn’t the only thing the Tea Bag Biddies seem to have overlooked.

There is more to BLM land management operations than protecting wildlife, there’s the part wherein the BLM is involved with wildland fire fighting, fuel mitigation, and related issues; combined with programs to manage energy resources, communication right of way and access, and hunting and fishing access.  Then, there’s that pesky bit of Constitutional History, in the act admitting Nevada into statehood:

“Third. That the people inhabiting said territory do agree and declare, that they forever disclaim all right and title to the unappropriated public lands lying within said territory, and that the same shall be and remain at the sole and entire disposition of the United States; …..”

So, the terms of AB 408 are ultimately selfish, deliberately narrow, and most probably unconstitutional – and Ammon Bundy, litigant in a relatively new phony lawsuit against the Feds, is gathering support from the Tea Bag Biddies in the Legislature. [LTN]  And, they’ll be hoping for some company. Company who share the Bundy fictional version of the country:

“The natural resources of America are being stolen from the people and claimed by the federal government. Everything we eat, wear, live in, use and so on comes from the earth. If we lose access to the land and natural resources we become beggars to those who control access. Without doubt this is the greatest immediate threat to the individual person and people as a whole. More lives, liberties and property can be taken under this threat than any other we see.”  [RReport]

No statement could make it more abundantly evident that the Bundy Brigade sees itself as separate from the other 320,000,000 people in this country.  For all the blathering about Constitutional-ism, the Brigade appears to have forgotten the first words of the hallowed document: We the people of the United States, on Order to form a more perfect Union…”  We the people form the government. Not “we the Bundys.”  A rough translation of Bundy-ism might be: What’s mine is mine and what’s yours is mine too.

And lest we forget, it was this same general philosophy which attracted support from the two Bundy-ites who killed Officers Alyn Beck and Igor Soldo, in Las Vegas, NV in June 2014. 

The bill will get its hearing, and should get nothing more. 

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Filed under Constitution, Hate Crimes, Interior Department, Nevada, Nevada legislature, Nevada politics, public lands, Rural Nevada

Legislative Headaches: The Tax Man Cometh

Take Two Aspirin

If the three major tax plans in the Nevada Legislature, and their varied explications, are giving you a head ache, the Las Vegas Sun offers a good comparison of them.  There’s a major problem with the Assembly GOP plan which:

“Would change modified business tax rate from 1.17 percent for general business and 2 percent for financial sector businesses to 1.56 percent for all businesses. Exempts companies with payrolls less than $50,000 per quarter and removes a deduction for health care premiums.”

This is a form of “flat tax.” And, there’s one group of businesses which benefit most from a “flat tax,” – the big ones. I know, it sounds counter-intuitive, but what gives the appearance of equity (the flat tax) actually ends up being one of the most inequitable forms of revenue raising.

Beloved by such think tanks as the ultra-conservative Cato Institute, flattening taxes works against middle income groups, both domestic and business.  Let’s assume that the 1.56% tax were to apply to all businesses in the state with payrolls more than $50,000 per quarter ($200,000 per year.) This would apply to all forms of enterprises except those in the financial sector.  For clarity, the financial sector includes commercial banks, investment banks, insurance companies, investment companies, unit investment trusts, face amount certificate companies, management investment companies (closed/open), and three types of non-bank investment companies: (1) savings & loans, (2) credit unions, and (3) shadow banks. [Investopedia]

Current law and the Sandoval Plan keep the tax on those financial sector enterprises at 2%.  The Assembly Republicans would provide them with a 0.44% tax break. At this point, it ought to be asked – Why is a bank like Wells Fargo with a reported revenue of $21.4 billion (up 4% YOY) getting a tax break when a supermarket is running on a 6% margin?  Or, why is a hedge fund, and those similar firms which operated in the shadows in the run up to the crash of 2007-2008, getting a break?

One conclusion is that the Banking Lobby and associated financialists are running full bore at the tax proposals.  Hedge fund managers already have one of the sweetest tax breaks imaginable in the form of the Carried Interest Loophole, and now the Assembled Wisdom is proposing they get a nice break from the state. [See also: TO.org, BusinessInsider]  If nothing else, the Assembly proposal indicates that Financialism is alive and well in the Legislature’s bailiwick.

In short, what looks superficially “equitable” actually makes it easier on the financial sector firms, and places more of the revenue raising responsibility on those businesses which operate on a local level – retailers, wholesalers, and the like.  “Shadow” financial institutions, already the beneficiary of copious tax avoidance strategies, are paying the same “freight” as the supermarket chain and the retailers.

There’s another point which ought to be addressed:  Who is at greater general risk during an economic downturn?  In case we hadn’t noticed – the financial sector is no longer directly connected to the commercial sector. The advent of the Shareholder Value theory of corporate management is what drives stock prices – it doesn’t matter if employment is dropping, if the cuts in payroll are assumed to be part of the management plan to boost the value of the shares.  However, in the real economy it matters very much if employment is reduced because that in turn yields lower demand for goods and services.

In this instance, “sharing the load fairly” actually means that the businesses most likely to be hurt by any economic downturn, and those businesses which are dependent on local economic conditions, are to “share” an equal burden in terms of revenue raising with those which are all too often the perpetrators of commercial difficulties in the “real economy.”

Putting it less diplomatically, the Assembly proposal really isn’t very fair at all.

*And by the way – doesn’t eliminating the deductions for health care insurance make it less likely employers will sponsor such plans, making it all the more necessary that the health insurance exchange markets under the Affordable Care Act be sustained?

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Filed under banking, Economy, Nevada economy, Nevada legislature, Nevada politics, nevada taxation

Spooks, Haunts, and other Scary Things in the Nevada Legislature

Nevada Legislature Scary Things

The GOP controlled Nevada Legislature is haunted. Specters and spooks dog the steps of the members of the Assembled Wisdom, wraiths point toward things of which we must be afraid, very afraid.

We must be afraid of voter impersonation fraud.  The fact that it hasn’t happened doesn’t mean that we ought not to writhe in terror at the prospect.  Speaking of ghosts of elections past, we have Sharron Angle to add her wail to the cries of alarm:

“Former Assemblywoman Sharron Angle, who lost the 2010 U.S. Senate race to Harry Reid, testified for the bill, saying “we do have a voter impersonation problem across the country.”  Anderson asked if she has found examples of voter impersonation in Nevada in her investigations. Angle said no, but that there is “anomalous activity that goes on in Nevada elections that is not easily explained.” [LVRJ]

One might reasonably guess that “anomalous activity” is one of those terms which might be analogous to the Spectral Evidence allowed in the Salem Witch Trials?   However, we might just as well place this within the glossary of meaningless phrases, which while sounding erudite, mean almost nothing, such as “stocks are down on profit taking,” or “there’s lots of cash on the sidelines.” [Ritholtz] Or, such unverifiable and empty notions like “highway miles.”  Or, those gratuitous and equally meaningless phrases which appear in job opening announcements, “self starter,” “team player,” and “highly qualified.”

The point being is that bills like SB 169 (photo ID) are necessary to solve the Republican problem of not being able to win elections if lower income, non-white, young people, and the elderly are allowed to vote.

We must be very afraid of criminals.  Not only must we quake in alarm, according to the GOP Gun Club we must arm ourselves and await the day when we will be called upon to open fire on the evil-doers in our midst. Unfortunately, this serves to remind us that one person who tried this at the Las Vegas Wal-Mart ended up as a victim. [SFgate] No matter, by the lights of the Gun Club we must all be allowed to carry concealed weapons – anywhere – unless maybe not on school grounds.  (AB 148) 

As of 2013 there were 2,790,236 people in the state of Nevada.  There were 16,496 violent crimes reported.  We should put this in some perspective.  First, if we divide the number of violent crimes (victims) by the total population the result is 0.00591.  Shift the decimal to create a percentage and we have 0.59%. [TDC]  Is the likelihood of victimization in a violent crime in Nevada so high that all the dangers associated with carrying a concealed weapon worth the effort? Secondly, there were 163 murders, 1,090 rapes, 5,183 robberies, and 10,060 assaults in Nevada as of the 2013 reporting period.  [TDC]   The numbers don’t suggest a need for a proliferation of arms among ordinary citizens.

But but but… What if the criminals think there will be armed opposition to their nefarious endeavors! That will prevent them from carrying out their heinous designs! Really?  The armed robber already has his or her gun in position, ready to fire. The gun in my purse or holster is going to take a moment to get “into position.” Thus, the obvious outcome is that the robber gets the money, and the firearm.  Then there is the “collateral damage” consideration.  What if the “burglar” isn’t a criminal after all, but some family member who has lost a key?  In public spaces, how does Our Concealed Carry Hero determine if another Concealed Carry Hero is, or is not, a perpetrator of the shooting? The questions go on, but the bottom line is that in the fanciful world of the gun enthusiasts every hero can make practical decisions at 2 in the morning, make every shot count, and insure that every shot is aimed at and will hit the criminal.  It’s a scenario right out of the made for TV melodramas. Legislation should be crafted upon a foundation of facts and rationality, not the fevered imaginings of the frightened.

We must be afraid that someone somewhere is taking money away from us, and that every accumulation of government revenue is robbery, and every public service employee is unworthy.  Those comfortably ensconced in the upper 0.01% of income earners may very well be able to buy all the books they want (therefore there is no need for public libraries) or to spend a vacation on a private island or in a private resort (therefore there is no need for any public parks), and they may elect to spend money on private security, or pay for service firefighting, or pay the tolls on roads and highways, or send the kids to private schools.  When money is no object, other people’s money is little more than a object of attraction. 

Unfortunately, the upper 0.01% has been effective over the last three decades in convincing ordinary people earning $50,000 per year that a public school beginning teacher earning $37,000 is a Pig At The Public Trough.  The median wage of an employee of the State of Nevada is currently $46,590.  Hardly a figure, when agency heads are included, to describe an opulent living.   Yet, public employees are taking fire in this edition of the Legislature.

However, it’s not just the public sector employees who are drawing the attention of the Needy Greedy.   State Senator Joe Hardy (R-Boulder City) wants to repeal the state’s minimum wage.  Hardy’s SJR 6 (pdf) would repeal Nevada’s minimum wage provisions and let the legislature determine if an employer is providing health insurance if the cost is not more than 10% of the employee’s gross taxable income.  Here’s a thought – How about, instead of allowing more employers to pay less than $8.25 per hour, Nevada enacted an increase in the minimum wage? Period.

Want to see fewer people have to rely on housing subsidies to keep roofs over their heads? Raise the minimum wage.  Want to see fewer people have to resort to the SNAP programs? – raise the minimum wage. Want to see fewer individuals have to avail themselves of Medicaid assistance? Raise the minimum wage. 

For too many years we’ve been told the people (including the disabled and the elderly) aren’t working hard enough.  They should get more education (despite the costs and time involved), get more gumption (this in the face of a 5% multi-job rate), work more hours… take individual responsibility!  This is all lovely palaver from the heights, the concepts tend to disintegrate when applied in the real world.  The question could as easily be reversed. For example, the Las Vegas Sands Corporation, with sales and revenue reported as $14.58 billion in 2014, and net income of $2.84 billion, couldn’t spring for more than a paltry $8.25 per hour?  The question ought to be why can’t employers pay more than $10.10 per hour, or a living wage of $15.00?

In the real world most employers do pay more than the minimum already.  Minimum wage workers comprise about 4.7% of the total employed workforce.  The chart shows national trends for minimum wage workers:

Minimum Wage workers

“Leisure and Hospitality,” where have we seen that category before? L&H is the largest employer in the state, accounting for approximately 398,000 jobs earning an average annual wage of $31,600 (net of benefits.)  So, here we sit in a state in which most employees are engaged by a sector most likely to pay earnings at or below the federal minimum wage – and we can’t figure out that those who need housing or SNAP assistance might not fall into those categories if the wages were increased? So, let’s ask again: Why are Nevada employers unwilling to pay wages which would support their employees above the rate at which they are eligible for public assistance?

There are some things about which we should be legitimately concerned, those just don’t seem to have made it into the consciousness of the Legislature’s majority. Here are two examples:

Nevada has an income inequality problem.

“The states in which all income growth between 2009 and 2012 accrued to the top 1 percent include Delaware, Florida, Missouri, South Carolina, North Carolina, Connecticut, Washington, Louisiana, California, Virginia, Pennsylvania, Idaho, Massachusetts, Colorado, New York, Rhode Island, and Nevada.” [EPI] (emphasis added)

This situation is economically unsustainable.  As middle income and lower income earners tighten their belts and shave their budgets, there are simply not enough high income earners to create the demand for goods and services over time.

Nevada has infrastructure issues.  Only in the categories of waste water and solid waste does the state of Nevada get a ‘good’ grade, a B, from the ASCE.  We seem to be handling the excremental elements of our state rather better than our school buildings and our dams.

If the Legislature can move past Guns Galore!, Labor Bashing, and Vote Suppressing, we might want to address these and other pressing issues in the Silver State.

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Filed under Crime Rates, Gun Issues, Nevada economy, Nevada legislature, Nevada politics, Vote Suppression, Voting

A Second Look At AB 182: ALEC’s assault on Nevada Public Employees

AB 182

REVIEW: If one feels the need for a bit of background information, the origin of bills like AB 182 can be found in the ALEC model legislation package known as “The Public Employee Freedom Act.”  (pdf)  The bill is a veritable laundry list of the ALEC bill-mill wishes:

“(1) AN ACT relating to local governments; prohibiting a local government employer from entering into an agreement to pay dues to an employee organization through deductions from compensation; (2) prohibiting such an employer from providing paid leave or paying compensation or benefits for time spent by an employee in providing services to an employee organization; (3) prohibiting the inclusion of certain employees in a bargaining unit; (4) revising provisions relating to a reduction in force; (5) providing that a collective bargaining agreement between a local government employer and a recognized employee organization expires for certain purposes at the end of the term stated in the agreement; (6) requiring public notice of certain offers made in collective bargaining; (7) eliminating final and binding fact-finding except upon the election of the governing body; (8)  removing a portion of the budgeted ending fund balance of certain governmental funds from the scope of collective bargaining and from consideration by a fact finder; (9) eliminating statutory impasse arbitration for firefighters, police officers, teachers and educational support personnel;…”

Nothing would so please the corporate masters of ALEC and the Koch Brothers alliance than to see public employee unions brought down, scuttled, and preferably stricken branch to root.

Every provision in this bill is strategically calculated to prevent unions from providing their services to their members.  No dues check off, making dues collection more costly and cumbersome for members; combined with the  attack on union leadership – after all, if the leaders can’t afford the volunteer time then service is necessarily reduced.  Eliminate “supervisory personnel,” if they so much as think about making an “independent judgment.”  No lawyers, no doctors, no supervisory personnel, may by involved in a bargaining unit?  No “confidential employee?”

Allow a government agency to reallocate resources such that there is a reduction if force – translation: layoffs – and then say “We did it because we moved the money elsewhere.” Anywhere? Any budget category? For any purpose? For the purpose of laying off personnel?  No “evergreen provisions?” No cost of living adjustments without a new master contract?

AB 182 assumes there will be no employee strikes – illegal for public employees in this state – but there won’t be any resolution options either. No fact finding, mediation, or arbitration results shall impinge on the employer to do whatever the agency wishes.  It’s take it or leave it time.

And, 16.6% of the total “budgeted expenditures” must be kept in reserve.  Really?  While this sounds “financially responsible” it really isn’t.  There are supposed to be funds allocated at the local level for “extraordinary maintenance and repairs or improvements, funds for contingencies, and funds to stabilize operations, and to provide a cushion in case of a natural disaster. [See: NRS 354]  There’s really little more to this than pulling 16.6% away from the bargaining table.

CONSIDER THE SOURCEWho is supporting ALEC?

The corporate sponsorships include:  The American Bail Corporation; the Altria Group (tobacco), AT&T, Diageo, Energy Future Holdings. Exxon Mobil Corporation, Koch Companies  Public Sector, Peabody Energy (coal), Pfizer Inc. PhRMA, State Farm Insurance, United Parcel Service, Amerian, American Express, US Airways, Anheuser Busch, Bayer Corporation, Bell Helicopter, BP America, Burlington Northern, Catepillar, Century Link, Chevron, Comcast, Conoco Phillips (under Phillips 66 brand), Dow Chemical, Eli Lilly Inc, Farmer’s Group, Georgia-Pacific (Koch Bros), Honeywell, Insight Schools Inc, JR Simplot, Marathon Oil, Raytheon, Reynolds American, T Mobile, Transcanada, (yes, THAT Transcanada)Verizon, and Xcel Energy.

However, a more interesting list is who has dropped membership in the organization which provides models for legislation like AB 182: Pepsi, Coca-Cola, Pepsi, Kraft, Intuit, McDonalds, Wendy’s, Mars, Reed Elsevier, American Traffic Solutions, Blue Cross Blue Shield, Yum! Brands, Proctor and Gamble, Kaplan, Amazon.com, Medtronic, Wal-Mart, Johnson and Johnson, Dell Computers, John Deere, MillerCoors, Hewlett-Packard, Best Buy, General Motors, Walgreens, Amgen, Dreyfus, Amgen, General Electric, Western Union, Sprint Nextel, Symantec, Entergy, Merck, Bank of America, Wellpoint, Bristol Myers Squibb, Brown-Forman, Publix Markets, Glaxo Smith Kline, Unilever, 3M, Darden Restaurants, IBM, Intel, Nestle USA, Berkshire Hathaway, NV Energy, Alliant Energy, Microsoft, Pacific Gas and Electric, Yahoo Inc, International Paper, Occidental Petroleum, Overstock.com, Facebook, Google, Union Pacific, eBay, Wells Fargo, and Northrop Grumman. [link]

Not to put too fine a point to it, but the Nevada legislators sponsoring AB 182 – Republicans Kirner, Dickman, Gardner, Oscarson, Wheeler, Edwards, Jones, Hambrick, Ellison, and Nelson – are still promoting legislation (and an ideology) which is no longer all that popular among major corporate sponsors.  The ALEC bill mill has lost some of its patina of late, but 10 Nevada Republicans haven’t quite noticed the train’s left the station?

While ALEC may be headed off to the horizon, the Koch Brothers and their Americans for Prosperity are alive and well.

“AFP adopts the anti-union positions held by its libertarian funders, David and Charles Koch.[56] A video published on YouTube on February 26, 2011 shows Scott Hagerstrom, the executive director of Americans for Prosperity Michigan, advocating “taking unions out at the knees so they don’t have the resources” to fight for workplace benefits or political candidates.” [Sourcewatch]

One has only to look at Michigan, Ohio, and especially Wisconsin under the Koch financed Walker regime, to see that AFP can simply adopt the legislative packages from ALEC, and insert these into state legislatures – like Nevada.

Thus, Republicans Kirner, Dickman, Gardner, Oscarson, Wheeler, Edwards, Jones, Hambrick, Ellison, and Nelson are simply doing the bidding of the Koch Brothers and promoting their reactionary agenda.

CONSEQUENCES:   This assault on unions, and specifically the attack on public employee unions, are part of the general hostility of corporations toward labor, and toward government.  The results are obvious.  As union membership has declined over the years so have middle class incomes.  [MJ] [APO] [EPI]  And, how did many families move into the middle class in the first place?  By becoming police officers, firefighters, teachers, community health nurses, librarians, land management specialists, transportation specialists, heavy equipment operators, social workers, public health service workers, and so on.

The wages and salaries earned by public employees, as determined by negotiated master agreements, put more families into the middle class, and more money into local economies.  Once again – the Koch Brothers aren’t interested in Bob’s Bodega or the Smith Family Furniture Store, or Jill’s Fashions —  the kinds of small businesses which form the core of local economies.  Possibly the view from inside the 0.001% bubble doesn’t allow for the possibility that products such as Koch Brother’s brands wouldn’t sell in such quantities without local retailers – local retailers who rely on middle income consumers to produce their revenue?

The anti-union, anti-labor perspective is ultimately unsustainable.  Yes, paper towels (like Koch’s Brawny brand) are basic household items, but put too much downward pressure on household income and people will discover that re-washable rags will work as well.  Every household needs toilet paper, like Koch’s Angel Soft, but households under pressure to save pennies may find cheaper brands to purchase.  While the Koch’s can fall back on Flint Hills energy products, local grocers can’t fall too far back from their local demand.  Grocers average a margin of 1-6%, [AZBus] which is not a large cushion to sustain too much drop in customer demand.

Perhaps it’s easier to sit back insulated by a top 0.001% annual income and think of Liberty, Freedom, Personal Accountability, and other abstractions, but the middle class consumer, including the middle class firefighter, police officer, teacher, social worker, or public health nurse doesn’t have that luxury.  Freedom for most people comes down to what Franklin D. Roosevelt called “Freedom from Want.”  The freedom which allows a family to procure all that’s necessary for basic needs, and leave  little left over for a home, for retirement, for an education for their children.  They want, and need, the freedom to breathe between paychecks.

Bills like AB 182 take the air out of the room.  If Republicans Kirner, Dickman, Gardner, Oscarson, Wheeler, Edwards, Jones, Hambrick, Ellison, and Nelson would pull this bill, people could all breathe a little easier.

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Filed under Nevada economy, nevada education, Nevada legislature, Nevada politics, Politics, public employees

ALEC and Nevada GOP launch vote suppression bills

vote suppression

It isn’t quite true to say that vote suppression bills are “a solution in search of a problem,” because the “problem” as seen by ALEC and associated Republicans is that too many people are voting, thus placing a permanent GOP majority in doubt.  Here’s a portion of AB 266, the perfectly predictable photo ID bill:

“Section 2 sets forth the acceptable forms of proof of identity which are: (1) certain government-issued documents or identity cards that show a recognizable photograph of the person to whom the document or card is issued; (2) a voter identification card; or (3) certain documentation from an administrator of certain health care facilities that are licensed by the State.”

What’s the problem? Just show the election officials your driver’s license? That, according to the Brennan Center isn’t a solution to the real problem – encouraging more people to participate in our electoral politics.

“Approximately ten percent of voting-age Americans today do not have driver’s licenses or state-issued non-driver’s photo ID. Based on Americans’ moving patterns, many more do not have photo ID showing their current address. And getting ID costs substantial time and money. A would-be voter must pay substantial fees both for ID cards and the backup documents needed to get them-up to $100 for a driver’s license, up to $45 for a birth certificate, $97 for a passport, and over $200 for naturalization papers. The voter may also have to take several hours off of work and travel significant distances to visit government offices open only during select daytime hours. Finally, many identifying documents cannot be issued immediately, so potential voters must allow for processing and shipping, which may take from several weeks to an entire year.”

As the Brennan Center relates, there’s nothing “free” about the documentation needed to get voting photo identification cards, even though the card itself is supposed to be issued at no charge.  And, who are those most likely to be suppressed by this legislation?  No surprise here:

“The impact of ID requirements is even greater for the elderly, students, people with disabilities, low-income individuals, and people of color. Thirty-six percent of Georgians over 75 do not have a driver’s license. Fewer than 3 percent of Wisconsin students have driver’s licenses listing their current address. The same study found that African Americans have driver’s licenses at half the rate of whites, and the disparity increases among younger voters; only 22% of black men aged 18-24 had a valid driver’s license. Not only are minority voters less likely to possess photo ID, but they are also more likely than white voters to be selectively asked for ID at the polls. For example, in New York City, which has no ID requirement, a study showed that poll workers illegally asked one in six Asian Americans for ID at the polls, while white voters were permitted to vote without showing ID.”

Whose vote is in jeopardy?

Predictably that would be elderly people, students, people with disabilities, low income Americans, and people of color.  We’ve covered this territory before in terms of Nevada voting, especially in rural areas.  The geography of this state, and the fact that most of the population tends to live in just two counties, means that rural voters are also at risk.

It’s also no surprise that some of the same people who walked off the ALEC gang plank into the depths of vote suppression are the same who made the same march previously, see here.  AB 266 also brings back memories of Senator Roberson’s 2011 SB 373.

How does this fly in the face of American judicial principles? 

Here’s a reminder:

“If you signed your registration form in Nevada declaring under penalty of perjury that you are at least 18 years of age, are a citizen of the United States, are not among the classes of persons held ineligible, and are a resident of the state.  The burden of proof that you have committed perjury rests with the state.

The burden of proof always rests with the state — in any prosecution for anything.  If a person is alleged to have voted once in Clark County and again in Nye County that would call for a prosecution of a crime under NRS 293 — but the burden of proof rests with the state.   If a person is alleged to have voted using an assumed identity, then this calls for prosecution, and once again — the burden of proof rests with the state.

Any suggestion that the citizen be required to “show proof of citizenship” at the polls is not only redundant, but shifts the burden of proof from the state to the individual.  That’s not the way the American system of jurisprudence works.  It’s not the way the American judicial system has ever worked.

A person in any court in the United States is never presumed guilty until he or she can demonstrate innocence.  A person need never prove beyond a reasonable doubt that he or she did not commit a burglary, an arson, a theft, a manslaughter — the burden of proof always rests with the state.  Demanding “proof of citizenship” at the polling stations presumes that unless a person can “prove” otherwise he or she is a fraudulent voter upends the very foundation of our criminal justice precepts.” [DB]

Fancy Focus Group Terms Don’t Hide The Intent

Conservative Republicans are fond of using terms like “election integrity,” as if there was something amiss in our current system.  There isn’t.  The one question these advocates of vote suppression don’t want to answer is:  How many cases of voter impersonation fraud have been identified in this state?  As of August 2014, there were 31 cases of voter impersonation fraud in the entire country, and not one case was associated with a Nevada election. [WaPo]

But, but, but…sputter the advocates, “Photo ID will make people feel better about their elections.”  That’s false, too.  When researchers from Harvard and Columbia put this to a statistical test, the results didn’t support this contention:

“Because actual evidence of voter impersonation fraud is rare and difficult to come by if fraud is successful, reliance on public opinion as to the prevalence of fraud threatens to allow courts to evade the difficult task of balancing the actual constitutional risks involved. In this short Article we employ a unique survey to evaluate the causes and effects of public opinion regarding voter fraud. We find that perceptions of fraud have no relationship to an individual’s likelihood of turning out to vote. We also find that voters who were subject to stricter identification requirements believe fraud is just as widespread as do voters subject to less restrictive identification requirements.” (emphasis added)

Conclusions

Vote suppression bills are precisely that – legislation intended to make it more difficult for groups least likely to need or afford photo identification to vote in state and national elections.  They are promoted by associations like ALEC, which produces the model legislation, in order to secure a permanent GOP majority in elected bodies.  Let’s slip out on the tree limb and conjecture that if the elderly, students, the disabled, and the poor were voting for eliminating the minimum wage, enhancing corporate tax breaks, and terminating the Consumer Financial Protection Bureau … the GOP would be demanding same day registration, and ALEC’s bill mill would be going full bore.

Vote suppression bills are unconstitutional. Discrimination should be the last thing found in polling stations. Further, to place the burden of proof on a “defendant” is counter to the very basic principles of American justice.

Vote suppression bills serve no one except corporate interests, as the Harvard/Columbia research reports – they don’t even make people feel any better.

AB 266, and its companions SB 169, and AB 253 should find their way to the bottom of some committee file cabinet – and not their way to the Governor’s desk.

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Filed under Nevada, Nevada legislature, Nevada politics, Vote Suppression, Voting

Nevada Legislature and Gun Club: SJR 11

Deer with Gun The Nevada Assembled Wisdom and Gun Club is considering  SJR 11, the proposed “right to hunt” amendment to the Nevada Constitution; it’s on the agenda for today’s session of the Senate Natural Resources Committee.  So, here we have yet another piece of legislation beloved and promoted by the NRA and the “firearms industry trade association” the National Shooting Sports Foundation.

“To most people, these amendments probably sound like a solution without a problem. But the NRA has been warning voters and state legislators that “radical” animal rights groups could come for their guns and traps any day now. As the NRA’s legislative arm, the NRA-ILA, wrote on its blog, it’s working to “protect the citizens’ hunting heritage from attacks initiated by well-funded anti-hunting extremists who have assailed sportsmen throughout the country in recent years.” [Salon]

Those “radical” animal rights groups include the Humane Society of the United States.   First, no one is “assailing sportsmen.” This image is part of the well known NRA/NSSF campaign to convince gun enthusiasts (ammosexuals) they are the “victims,” of something… anything… everything.

Secondly, the language is a bit dangerous. “This resolution proposes to amend the Nevada Constitution by adding a new section to Article 1 to preserve the right to hunt, trap and fish for residents of this State. This resolution provides that hunting, trapping and fishing are the preferred means of managing wildlife in this State.”

The language as presented incorporates the assumption that all forms of ‘wildlife’ are over populated and therefore the preferred management option is killing them.  Thus, the constitution would be amended to ‘prefer’ killing off a population of beasts, as opposed to protecting a population of those classified as endangered, or even considered at risk, as a form of ‘management.’

We could, therefore, risk ‘managing’ our wildlife on their way to joining the Pinta Island Tortoise, the Vietnamese Rhino, the Yangtze River Dolphin, the Western Black Rhino, the Zanzibar Leopard, the  Javan Tiger, the Blue Pike, the Caribbean Monk Seal, the Passenger Pigeon, and the Dodo.

The problem with SJR 11 isn’t that hunters, trappers, and fishing folk are somehow deprived of any rights, it’s that the NRA/NSSF want to promote the “management” of some wildlife to possible extinction – if it makes the shooters happy.

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Filed under Gun Issues, Nevada legislature, Nevada politics