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Challenge Counties Authority NATIONAL ASSOCIATION OF COUNTIES ■ WASHINGTON, D.C. VOL. 47, NO. 19 ■ OCTOBER 5, 2015 Government Congressional stays open, support grows but threat to repeal not over ‘Cadillac Tax’ BY AUSTIN IGLEHEART BY BRIAN BOWDEN AND LEGISLATIVE ASSISTANT MIKE BELARMINO ASSOCIATE LEGISLATIVE DIRECTORS Facing a looming deadline, Congress passed a temporary Efforts to repeal the 40 percent funding bill to avoid a govern- excise tax on employer-sponsored ment shutdown and continue health coverage (sometimes funding for federal programs referred to as the “Cadillac tax”) through Dec. 11. The temporary recently received a big boost as measure, known as a Continu- the Senate introduced two bills to ing Resolution (CR), became repeal the controversial tax that necessary with FY15 coming to will impact many counties when a close on Sept. 30 and no clear it goes into effect in 2018. resolution on the horizon for the On Sept.17, Sens. Dean Heller FY16 appropriations process. (R-Nev.) and Martin Heinrich The CR, which passed the (D-N.M.) introduced S. 2045, the Senate by a vote of 78–20 and Middle Class Health Benefits Tax the House by a vote of 277–151, Illustration by Repeal Act of 2015 — bipartisan keeps the federal government Leon Lawrence III legislation to repeal the excise operating at essentially FY15 tax. The bill currently has 13 co- funding levels for 10 weeks sponsors (as of Sept. 25). while Congress works to reach On Sept. 24, Sen. Sherrod an agreement on a final FY16 ‘DISRUPTORS’ CHALLENGE Brown (D-Ohio) introduced spending measure. S. 2075, the American Worker Though both chambers have Health Care Tax Relief Act of reported all 12 of the individual COUNTIES AUTHORITY 2015, which also repeals the tax appropriations bills out of com- but includes a non-binding “Sense mittee, the House has only passed BY CHARLES TAYLOR As for food trucks, they compete players “disruptive innovation,” of the Senate” clause demanding SENIOR STAFF WRITER — unfairly, some say — with the process by which new products See GOVERNMENT page 2 bricks-and-mortar restaurants. or services start up quickly, grow See CADILLAC TAX page 6 In your county, the hottest These are the disruptors, and relentlessly and eventually displace street-food from Paris or Phnom they’re redefining counties’ roles established competitors. Penh may have joined the ranks as regulators. The Center for State and Local INSIDE THIS ISSUE of hot dog and taco trucks at They include ride-booking Government at George Mason curbsides, redefining “meals on services, like Uber, Sidecar and University (GMU) in northern wheels.” Lyft, the for-hire cars with the pink Virginia recently released a report Want a room or a ride? Ser- moustaches on their grilles. And on the “sharing economy” and the vices like Airbnb and Uber have home-sharing pioneers Airbnb, implications of disruptors for local broken the mold of traditional taxi VRBO and FlipKey. governments in Virginia. Frank service and vacation rentals — Clayton Christensen, a Har- Shafroth, who directs the program, and remade them with lightning vard Business School professor, speed, and, often, at lower costs. calls the birthing of these new See DISRUPTORS page 4 NACo President Sallie Clark gets Questions about redistricting, labor relations on new President’s Perspectives on track Page 2 the docket for counties this Supreme Court term There’s more to police body cameras than just pretty pictures Page 5 BY LISA SORONEN most notably Reed v. Town of Gilbert, governments. Adding to the intrigue, Greater sage grouse stays off STATE AND LOCAL LEGAL CENTERWASHINGTON, D.C. Arizona (2015), holding that strict many of the court’s decisions this endangered list Page 8 scrutiny applies to content-based sign term are likely to be discussed by The U.S. Supreme Court’s last ordinances. The October 2015 term is the 2016 presidential candidates as Author explores why new term was big for local governments one to watch and not just because the the campaign heats up. federal grant rules matter because the court decided a number court has accepted numerous cases to counties Page 12 of important cases against them, on controversial topics affecting local See SUPREME COURTpage 6 2 October 5, 2015 CountyNews • December 11 government shutdown PRESIDENT’S PERSPECTIVE By Sallie Clark looms if no budget agreement GOVERNMENT from page 1 bursement of the remaining Verify, which helps employers $37 million in Payments in Lieu determine whether prospective six of these while the Senate has of Taxes (PILT) payments for employees are eligible to work not passed any. FY15. PILT funding is vital in the U.S.; the EB-5 Investor The following provisions of im- to counties across the nation Visa program, through which portance to counties are included containing federal land within foreign investors can obtain in the Continuing Resolution: their boundaries, helping them U.S. green cards; and the Con- pay for services ranging from rad 30 Waiver Program, which Spending Adheres to the education to public safety. helps attract medical doctors Budget Control Act 2011 to rural and underdeveloped Under the CR, discretionary Extends Preemption communities by providing defense spending and discretion- of County Sales Tax visas for doctors willing to serve ary non-defense spending are Authority such areas. slightly reduced relative to FY15 The CR also contains a pro- levels, consistent with the top-line vision that temporarily extends Final Appropriations When I was sworn in as NACo’s cutting-edge tools like the indus- spending limits set by the Budget the Internet Tax Freedom Act Package Remains president this past summer, I spoke try’s AskRail app, which provides Control Act of 2011 (S.365). A (ITFA). The length of the exten- Unclear about how we are entering a new first responders with immediate temporary freeze on new defense sion matches the period that is Now that Congress has phase of promise and opportunity. access to data about the types contracts would also be put in place ultimately adopted for the CR passed the CR, it is unclear I’m pleased to welcome you to the of hazardous materials being as a way to limit defense-spending (through Dec. 11). The ITFA, what is in store for the ap- first monthly column designed to transported so they can properly growth. enacted in 1998, was originally propriations process. House provide perspectives and updates respond to emergencies. intended to be a temporary conservatives may demand that on our progress. Overall, the experience was Support for Wildfire prohibition of state and local a provision to defund Planned As president, I’m honored to informative and facilitated idea- Suppression, PILT Program taxation of Internet access so Parenthood be added to any ap- meet with many counties, state sharing between NACo leaders The CR also provides $700 that the Internet would have propriations package, despite associations of counties, NACo af- and BNSF. My greatest takeaways million in emergency funding for an opportunity to grow as an the Senate’s failure last week filiates and public and private sector from the meeting were the need the U.S. Forest Service to suppress industry. to advance a CR that included partners. Since July, NACo leaders for counties to be well informed wildfires, which have been particu- However, this preemption of similar language, voting 47–52 have been to more than 20 state as- about the impacts of rail transport larly severe this season and have state and local tax authority has against consideration of that sociation meetings. I participated on our communities and the strained fire suppression budgets. been extended several times, and measure. in meetings in Alabama, Montana, importance of working with rail The emergency funding will given the growth and changing Speaker John Boehner North Carolina, South Carolina providers to keep our land and not count against overall spending uses of the Internet, NACo has (R-Ohio), who on Sept. 25 and Wisconsin. During each trip, residents safe. caps. This funding could prove opposed attempts to make the unexpectedly announced his I learn how local leadership can crucial for counties that have prohibition permanent. retirement, has urged members help overcome some of our most experienced severe wildfires by to look for ways outside of the pressing challenges. boosting the Forest Service’s ability Immigration Programs appropriations process to target As part of my Safe and Secure CountyNews to help fight them. Extended Planned Parenthood, though it Counties initiative, I had the op- President | Sallie Clark Furthermore, the CR includes The CR extends several is unknown whether they will portunity to join a group of NACo Publisher | Matthew Chase language intended speed up dis- immigration programs: E- follow his lead. leaders in Whitefish, Mont. in Public Affairs Director | Brian Namey Executive Editor | Beverly Anne Schlotterbeck Democrats, for their part, Flathead County for a roundtable Senior Staff Writer | Charles Taylor Senior Staff Writer | Charlie Ban Get ready for today’s have vowed to oppose any discussion on intermodal transpor- QUICK TAKES measure that defunds Planned tation and freight rail safety issues. Design Director | Leon Lawrence III Parenthood and any measure The event brought us together with ADVERTISING STAFF that increases defense spending BNSF Railway, one of the largest Job Market/Classifieds representative National Accounts representative TOP RECIPIENTS OF without matching the increase freight railroad networks in North Beverly Schlotterbeck legal workfl ow. FEDERAL AIRPORT FUNDS dollar-for-dollar with domestic America that primarily services the (202) 393-6226 • FAX (202) 393-2630 spending increases. Given the western United States. Published biweekly except August by: National Association of Counties tension between the chambers Our discussions explored sev- Research Foundation, Inc. County Amount and between the parties within eral issues but primarily focused 25 Massachusetts Ave., N.W.
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