Stateline

Vol. 25, No. 4 • April 2016

MidwestTHE MIDWESTERN OFFICE OF THE COUNCIL OF STATE GOVERNMENTS

INSIDE CSG Midwest Issue Briefs 2-3 States trying to tackle legality • Agriculture: Protein Highway initiative highlights an overlooked strength of region • Midwest-Canada Relations: ‘Hackathon’ of daily fantasy sports activity seeks ways to ease business exporting • Economic Development: Midwest states mull various strategies to expand broadband Recent bills seek to remove statutory bans or ambiguity while • Health & Human Services: After delays, Iowa launches Medicaid managed care adding rules for operators and new protections for participants Around the Region 4 by Tim Anderson ([email protected]) New survey shows potential of passenger rail to meet needs of more college students o see just how different the environ- “We have ambiguity in our statute Status of daily fantasy sports ment for daily fantasy sports opera- about whether this is gambling or not, and related laws, legislation Question of the Month 5 tors and participants can be from and depending on who you talk to, you Have any states banned weaponized drones T (as of early April) in their laws on unmanned aerial vehicles? one U.S. state to the next, the Midwest is get different answers,” Atkins says. a good place to start. There are big stakes in the answer, First in the Midwest 5 In Minnesota, fantasy sports of some for daily fantasy sports operators and Ohio and the continuing debate over kind are being played by upward of 1 mil- players alike. bilingual education in the nation’s schools lion people, and that includes participa- “If it’s not legal, you can’t collect,” Profile 8 tion in the shorter-term, “daily” versions notes Atkins, who has backed a measure of games run by leading operators such this year to remove that ambiguity (by North Dakota House Minority Leader Kenton Onstad as FanDuel and DraftKings. legalizing fantasy sports in Minnesota) “We have this reputation of being and to add new state regulations. FirstPerson 9 straight-laced in Minnesota, but we like The legality of daily fantasy sports is Law in place that legalizes daily South Dakota Rep. Jacqueline Sly on a new our charitable gaming and we like our unclear in many other states as well, and fantasy sports education law that will raise teacher pay fantasy sports,” Rep. Joe Atkins says. that uncertainty has led to numerous “Minnesota is tops in the country in Law in place that legalizes and legislative proposals across the country. regulates daily fantasy sports CSG News & Events 10 terms of participation.” In March, Indiana became one of MLC meeting will include sessions on elections, Perhaps the state’s long, cold winters Bills introduced to legalize and the first U.S. states to take the two-step political communication and water policy explain the games’ popularity, he adds. regulate daily fantasy sports; state approach of legalizing and regulating. attorney general says it is illegal under “First, you see how many people are re- Capitol Clips 12 But neighboring Iowa has plenty of current law ally playing this, and then you realize there • Indiana establishes new teacher scholarships months of snow and ice, and few if any Bills introduced to legalize and are no consumer protections,” says Sen. Jon • Iowa continues to lead nation in wind energy residents in that state are playing daily regulate daily fantasy sports Ford, the author of Indiana’s SB 339. • States in legal fight over drug legalization fantasy sports. The reason: The operators Source: Legal Sports Report of these contests don’t offer them as a result “Then it becomes clear that you have • Illinois looks for new way to fund fairgrounds of Iowa’s statutory language on gambling. to do something. That’s how I came at “Something like fantasy sports is from across the country, and around the this — looking at this as a way to protect Stateline Midwest is published 12 times a year considered illegal until we expressly world, in shorter-term contests. consumers.” by the Midwestern Office of authorize it,” explains Sen. Jeff Danielson, A Minnesotan, for example, famously In the months leading up to this year’s The Council of State Governments. who introduced legislation this year to won $1 million this past fall on a $25 pay- state legislative sessions, there were Annual subscription rate: $60. do just that. ment that he made in a contest based on a high-profile stories of “insider trading” To order, call 630.925.1922. With fantasy sports, players typically single week of play in the NFL. His huge (an employee of one daily fantasy site select a “virtual team” of athletes from a win raised some important questions using confidential information to win particular sport and then compete against about Minnesota law. games offered by another operator) and one another, with the outcomes based PLEASE TURN TO PAGE 6 on the statistical performance of those chosen athletes. The playing of fantasy CSG Midwestern Office Staff In states across the Midwest, sports has been going on for decades, but legislators are considering laws Michael H. McCabe, Director Tim Anderson, Publications Manager for much of that time, it mostly involved to legalize and regulate daily Jon Davis, Assistant Editor/Policy Analyst competitions among friends, family and fantasy sports. One reason why is Cindy Calo Andrews, Assistant Director co-workers. the big increase in participation Ilene K. Grossman, Assistant Director The rise of daily fantasy sports has levels —between 2014 and 2015, Lisa R. Janairo, Program Director the number of people in the United Laura Kliewer, Senior Policy Analyst changed the game. States and Canada playing fantasy Gail Meyer, Office Manager Through the websites and mobile Laura A. Tomaka, Senior Program Manager apps offered by various game operators, sports of some kind (including daily Kathy Treland, Administrative Coordinator and Meeting Planner fantasy sports) rose 40 percent. Angela Tucker, Intern players can compete against strangers Katelyn Tye, Policy Analyst CSG MIDWEST ISSUE BRIEFS

Issue Briefs cover topics of interest to the various groups and policy committees of CSG Midwest, including the Midwestern Legislative Conference, Great Lakes Legislative Caucus, Midwest Interstate Passenger Rail Commission and Midwestern Radioactive Materials Transportation Committee. Agriculture & Natural Resources

New ‘Protein Highway’ initiative “Increase the demand for regional farm products and looks to capitalize on region’s unique agricultural strengths lead to a more diverse array of crops to choose from armers in the states and provinces that make during planting season.” up CSG Midwest’s Midwestern Legislative Jamshed Merchant, Canadian consul general in Minneapolis, on the FConference are the most prolific producers goals of the new Protein Highway initiative of edible protein in the world. This is an enviable position to be in, especially at a time when demand for high-protein diets is on the global leaders in meat production, but less recognized in agriculture production is needed to meet the food rise, and a new binational partnership is seeking to is this region’s pre-eminent role in growing high-protein demands of future generations. But it also can open make the most of this regional economic advantage. plants — for example, North Dakota is the largest pro- new markets. For example, with improvements to pal- Developed by the Consulate General of Canada ducer of dry beans in North America, and Saskatchewan atability, aroma, digestibility and functionality, a wide in Minneapolis, the “Protein Highway” initiative leads the world in canola and pea production. variety of protein-rich crops could be incorporated encompasses three Canadian provinces (Alberta, The goal of this new initiative (which includes into popular items such as cereals, granola bars and Manitoba and Saskatchewan) and six U.S. states participation from university faculty and agricultural snack items — a potentially huge market opportunity (Iowa, Minnesota, Montana, Nebraska, North Dakota producers) is not only to improve research capabilities for the Midwest’s farmers. and South Dakota). and cooperation, but to create a regionwide brand Another area of interest is animal feeds. South “[It] is a great way to not only connect research built around protein production. Dakota-based Prairie Aquatech, for instance, is work- between universities, but to tie in the private indus- If successful, says Jamshed Merchant, Canadian ing to expand the use of plant-based commodities, tries and producers that can benefit from the research consul general in Minneapolis, the initiative will such as soybean meal and distillers grain, in fish and and from the increasing demand and profitability due “increase the demand for regional farm products and other animal feeds. to value-added products,” says Kevin Kephart, vice lead to a more diverse array of crops to choose from By encouraging more collaboration and innova- president of economic development at South Dakota during planting season.” tion across state and provincial borders (whether State University. The first step is to encourage research and it be better marketing plant-protein products or “It is an effort that really makes sense for the entrepreneurship that centers on high-protein crops improving their production), the initiative hopes to region.” in the region. spur economic growth in agricultural communities States such as Iowa and Nebraska are known as Experts around the world agree that innovation across the Midwest.

Brief written by Carolyn Orr, staff liaison to the Midwestern Legislative Conference Agriculture and Natural Resources Committee. She can be reached at [email protected]. The committee’s co-chairs are North Dakota Sen. Don Schaible and Iowa Sen. Mary Jo Wilhelm. Midwest-Canada Relations

Small-business barriers to more data sharing to ease the paperwork burden for exporters. Once an exporter creates an invoice, Survey of Canada’s small businesses: exporting inspire ‘hackathon’ “When importing into Canada, how do to improve border procedures that information would be automatically transferred to a customs form. The data would then be sent to you rate the following ...” (% response)

or many small businesses, trying to export the appropriate government agency and to the firm Speed of crossing border 18 57 25 goods across the U.S.-Canada border for the transporting the shipment. Duties collection process 13 62 25 first time can be both time-consuming and Schlosser, senior director of the chamber’s Center F Paperwork 10 55 35 discouraging. for Global Regulatory Cooperation, says his organiza- Level of fees 5 40 55 “Its first experience may be its last,” Adam tion is now working to connect the hackathon winner Schlosser says about a business and its initial with officials at the U.S. Commerce Department. Level of penalties 5 38 57 experience with the “paperwork and difficulties at Good Acceptable Poor the border.” Smaller firms, bigger challenges Source: “Beyond the Big Border,” Canadian Federation of Independent Business But could there be an “app” to help fix that? Completing the necessary paperwork and navigat- Earlier this year, the U.S. Chamber of Commerce ing countries’ “divergent rules and processes” are costs involved (in terms of time and money). About helped organize a “hackathon” in Chicago and required of all exporters, Schlosser says, but it can one-fourth of them say border crossing speeds are Toronto. The goal of the two-day event was to find be especially burdensome for smaller firms with “poor” (see bar graph above). innovative ways of simplifying customs and border limited staff and fewer specialists. These smaller firms play a big part in the two procedures for small and medium-sized enterprises. Other common obstacles include brokerage and countries’ integrated supply chain, one in which (A “hackathon” is an event that brings together people inspection fees; tolls at the border; and delays due to manufacturers have reduced their inventories of who then use their technological skills and creativity inspections, traffic tie-ups and incorrect paperwork. component parts and are instead relying on just-in- to solve a specific problem.) In a recent survey done by the Canadian Federation time deliveries. A Chicago-based team, Trade Sherpa, won the of Independent Business, one-third of Canada’s small “Shipment delays cost money,” Schlosser says, event’s first-place prize. and medium-sized businesses said they would not “and wait times [at the border] disrupt modern Its application programming interface allows have traded across the border had they realized the manufacturing practices.”

Brief written by Ilene Grossman, staff liaison to the Midwestern Legislative Conference Midwest-Canada Relations Committee. She can be reached [email protected] . The co-chairs of the Midwestern Legislative Conference Midwest-Canada Relations Committee are Indiana Sen. Ed Charbonneau and Manitoba Minister Drew Caldwell.

2 STATELINE MIDWEST APRIL 2016 Economic Development

3 states’ recent laws part of a single point of contact for service providers. A As of February of this year, 20 percent of Minnesota regional push to bring Internet separate bill (AB 798) would have increased annual households lacked access to a download speed of at access to more households funding for the state’s Broadband Expansion Grant least 10 Mbps — a goal set in statute in 2010. Last Program from $1.5 million to $10 million. It did year, the Governor’s Task Force on Broadband recom- n recent years, state government has taken a not pass prior to this year’s mended a new download goal of 25 Mbps. more active role in helping provide citizens with legislative adjournment. “Speed goals are the tool we are using to identify Igreater access to reliable broadband Internet. In Minnesota, Gov. Mark unserved and underserved areas,” Baker says. By using funding or incentives to encourage Dayton is proposing to add The broadband gap is widest in rural communities, providers to expand broadband into underserved $100 million to the state’s where half of Americans can’t get advanced broadband areas, policymakers hope to address equity issues Border-to-Border broadband service, but Baker says other areas of Minnesota are involving access, as well as the role that access grant program; a separate hampered by the lack of high-speed access. plays in terms of improved education, economic measure proposes a more “My bill also identifies low-income areas as a prior- development and even public safety. Minnesota Rep. modest boost of $35 million. ity,” he says. “The poorest areas should not be forgotten.” In June of last year, Iowa lawmakers approved Dave Baker Rep. Dave Baker, spon- Wherever the state’s grant dollars go, he adds, it’s legislation (HF 655) that provides property tax abate- sor of the latter proposal, important that the broadband-related work done with ments to companies that install equipment to build says his position in the broadband debate is largely them can meet future demands and changes. out broadband infrastructure throughout the state. about prioritizing available resources, as well as “The goal is to do this once; we don’t want to ever In August, Gov. Terry Branstad announced that an taking a long-term approach to an ever-evolving go back and redo something that didn’t expand with additional 90,000 Iowa households would have access technology. new technologies,” says Baker, noting that “wireless to high-speed internet as a result of the plan. “[There is] never enough money,” he says. “The and satellite products are improving each year with This session, lawmakers in Wisconsin and Minnesota governor wants $100 million. I would like that, too. amazing results and need to be a part of the solution.” have also weighed proposals for making broadband However, we have many priorities in the state ... But while legislators still have to work through this service more available throughout their states. that also need money.” year’s proposals, there seems to be widespread agree- Wisconsin’s AB 820, signed into law in March, Despite improvement efforts in recent years, ment that Minnesota should be investing in broadband. seeks to expedite development in the state’s most Minnesota lags behind national numbers measuring “This is a real infrastructure need,” Baker says. remote areas by reducing bureaucratic and fiscal high-speed availability. According to the Federal “Keeping residents in rural Minnesota for job reten- barriers for service providers. Communications Commission, 17 percent of the tion and growth is key. Having acceptable broadband Under the new law, the state will certify U.S. population (or 55 million people) lacks adequate has a big impact on quality of life, not to mention communities as “Broadband Forward!” if they access to high-speed broadband service, defined more home-based businesses that need better speeds. limit application fees and streamline the application by the FCC as download speeds of 25 megabits per Minnesota will lag far behind our other states if we process — for example, providing a timeline and second, or Mbps, and upload speeds of 3 Mbps. don’t assist when private industry can’t or won’t.”

Brief written by Laura Tomaka, staff liaison to the Midwestern Legislative Conference Economic Development Committee. She can be reached [email protected] . The committee’s co-chairs are Michigan Sen. Ken Horn and Nebraska Sen. Heath Mello. Health & Human Services

Iowa joins majority of states by % of Medicaid enrollees taking care, though, ultimately got the go-ahead from U.S. switching to managed care; some part in Medicaid managed-ca re health officials and took effect April 1. legislators seek more oversight programs in Midwest “Benefits do not change under managed care,” Gov. Branstad said in announcing the switch. He also fter some bumps along the way, the Iowa highlighted 80 new “value-added benefits,” such as a Medicaid program — and some 560,000 21% 24-hour nurse hot line and new preventative services. 73% AIowans — transitioned to a managed-care Mathis, though, remains concerned. 67% model of care in April. * “First and foremost is the care of our citizens — Iowa now joins the majority of U.S. states 77% 560,000 of our most vulnerable,” she says. “We have nationally, and within the Midwest, that depend 12% 57,000 on waivers for services for persons who are the 74% on private entities called managed-care organiza- 78% most complex cases. We will need to ask, ‘Are you still 53% 78% tions — or MCOs — to deliver Medicaid services to providing services in a way that is satisfactory?’ ” most enrollees in their public insurance programs 95% As an example, she points to some of those “most for low-income families and individuals (see map). complex cases” — those 57,000 Iowans receiving Under managed care, states do not pay health care * South Dakota did not have enrollment in Medicaid managed-care model. Medicaid care via a federal waiver. Medicaid waivers providers on a fee-for-service basis. Instead, MCOs are Source: Kaiser Family Foundation (data as of July 1, 2015) allow states flexibility to design and test services for a paid an agreed-upon amount for each member’s health particular population or to provide care in particular set- care expenses. Adjustments can be made to the per- Committee, says a bill was then passed last year calling tings, such as community-based services for individuals member fee based on the health status of the member. for public meetings to review the transition. “We were with disabilities or the aging population. Savings are shared between the states and the MCO, shocked and appalled at how little communication had “How can [the MCOs] show better outcomes? the latter of which assumes the risk of cost overruns. been absorbed by enrollees,” she adds. Can they show savings?” Mathis asks. Iowa began its journey to managed care by issuing a The scope and speed of the move to managed care Her committee proposed an oversight bill (SF request for proposals early last year. The RFP indicated also concerned legislators; Mathis and two others 2213) with provisions to protect consumers, preserve that the state was looking for $100 million in savings, but traveled to Washington, D.C., last year and asked provider networks and ensure accountability. The Gov. Terry Branstad received criticism for making the federal officials to slow the transition. measure passed the Senate but stalled in the House. decision to privatize Medicaid without legislative input. Iowa’s transition was indeed delayed because it did As of early April, other legislative oversight proposals Iowa Sen. Liz Mathis, chair of the Human Resources not meet federal readiness metrics, its move to managed were being considered.

Brief written by Debra Miller, CSG director of health policy. She can be reached at [email protected]. The co-chairs of the Midwestern Legislative Conference Health & Human Services Committee are Kansas Rep. Susan Concannon and Illinois Rep. Robyn Gabel.

STATELINE MIDWEST APRIL 2016 3 AROUND THE REGION

Update on passenger rail Midwest survey finds support, construction in Midwest opportunity for passenger rail ere is a brief look at passenger rail improve- ments and service studies around the Midwest. assenger rail ridership among college H Amtrak routes in the Midwest • In Illinois, track, bridge and right-of-way work students in the Midwest could grow from continues in the Chicago-St. Louis corridor to upgrade Pa small, dedicated nucleus of current pas- sengers to a bigger portion of the student travel most of the route for 110-mph operation by the end of market, according to the results of a new survey 2017. The $1.89 billion project will result in increased conducted by the Midwest Interstate Passenger safety, decreased travel times and improved on-time Rail Commission (MIPRC). performance. The survey of 19,194 respondents from 30 The Illinois Department of Transportation was four-year colleges and universities along Amtrak also awarded $3 million from the Federal Railroad routes in this region found there is a small but Administration in 2015 for a Chicago Union Station dedicated group that rides trains regularly to and planning study, which will benefit freight and pas- from school, and a bigger group open to taking the senger traffic and include recommendations for a train. Moreover, that latter group can be persuaded future regionwide operating plan. to do so with the right mix of marketing, education • Indiana contracted with Amtrak and Iowa and incentives. aware” of the roles played by states and the federal Pacific Holdings in August 2015 to operate the MIPRC’s analysis of the government in funding Amtrak and in determin- Indianapolis-Chicago Hoosier State for two years. results suggests that focused ing passenger rail routes and service frequencies. The state and local partners pay roughly $3.2 million marketing of Amtrak service “These results are very encouraging; not only per year. Iowa Pacific is providing the rolling stock, and schedules, cooperation is there a solid ridership base today, but the survey maintenance and food/beverage marketing; Amtrak between Amtrak and schools shows enormous passenger growth potential could is providing crews and serving as the train’s opera- to get that information into result from well-targeted marketing and education tor. Meanwhile, work on the $71.4 million Indiana students’ hands, and, in some campaigns. That’s as good a ‘return on investment’ Gateway project is scheduled to wrap up by the end cases, to make transportation as we could hope to find,” says Missouri Sen. of 2016. It will ease rail traffic snarls between Porter, David Pearce, chair of the MIPRC University Missouri Sen. to and from campus and the Ind., and the Indiana-Illinois state line. train station easier, would Partnerships Committee. David Pearce “We encourage states, schools and Amtrak to • Kansas is participating in the $21.8 million induce more students to take work over the summer break so they can begin Southwest Chief Route Improvement Project to the train. So, too, would more tapping this market when fall terms begin.” restore 79-mph service through western Kansas frequent service. MIPRC is a nine-state interstate compact that and eastern Colorado. Kansas’ share of the tab is $3 The survey found that reasons from respon- promotes, coordinates and supports regional million (the project was awarded a $12.5 million dents who said they’ve never taken the train to improvements to passenger rail service. CSG federal TIGER grant in 2014; Amtrak, BNSF and or from school tilted toward a perceived lack of Midwest provides staff support to MIPRC. local governments also provided matching funds). convenience rather than indifference or personal The MIPRC Colleges & Universities Passenger Work is scheduled to end in November. Kansas is also animosity toward that particular travel mode. Rail Survey was conducted between November providing matching funds for a continuation of the Asked for reasons, and to mark all applicable 2015 and February 2016. Participating schools project for which the city of La Junta, Colo., received answers, almost half said the available train route included 10 from Illinois; seven from Michigan; a $15.2 million 2015 TIGER grant. is inconvenient either because it isn’t direct, or because travel takes longer than driving or flying. three each from Minnesota and Missouri; two each • A recently completed $15.8 million project in Lack of a station close to home drew 35 percent, from Kansas and Wisconsin; and one each from Michigan now allows Amtrak’s Wolverine service to but 24 percent said they “don’t know where/how Indiana, North Dakota and Ohio. bypass a busy rail junction. In addition, track, signal to catch a train near my school.” Three-quarters (75 percent) of respondents and train control work continues between Dearborn reported as students; of them, almost all (90 and Kalamazoo for 110-mph service. Work is scheduled Information is locomotion? percent) reported they were full-time students. to be done by March. The Michigan Department of Respondents who said they had recently taken Transportation is also partnering with third parties to Asked what might get them to take the train a train were invited to take a secondary survey study two potential new passenger rail routes: Detroit- (another multiple-answer question), 57 percent about their most recent trip. That survey found 71 Lansing-Grand Rapids and Ann Arbor-Traverse City. included “information provided by my college/ percent saying they enjoyed their trip (or enjoyed • Minnesota’s Northern Lights Express connecting university on how to take the train” or “transporta- it a lot), 70 percent saying onboard WiFi is “very” the Twin Cities with Duluth and Superior, Wis., is tion provided by my college/university to get to the or “extremely” important, and 55 percent saying inching toward a planned construction date of 2017. closest Amtrak station.” it was very easy or extremely easy to get between A preliminary report released in December estimated “If there was a station close to my permanent school and an Amtrak station. a total price tag of between $500 million and $600 residence” was included by 44 percent. But respondents dinged performance: 49

million for 90-mph service vs. an estimated $1 billion Twenty-three percent of respondents indicated percent said their train arrived at their destination for higher-speed service. Four daily round trips are they have taken the train at least once between late, and just 34 percent said they had “very” or planned along the 152-mile route. Pending federal school and their permanent home, although only 5 “extremely” convenient departure times. funding, service could begin as early as 2020. percent said the train is their primary travel mode. Each participating school received a copy of its The state has also handed off the proposed More than a third of those saying they take survey results along with the analysis. Regional and Twin Cities-Rochester Zip Rail to North American the train also say passenger rail is an important state analyses were also drafted, and can be seen High Speed Rail; the Minnesota Department of resource for them to be able to attend school. at MIPRC’s newly redesigned website, www.miprc. Transportation has issued permits to the private The survey finds strong support for passenger org. (MIPRC is also now on Twitter: @MW_Rail.) company to begin its own study. rail as an integral piece of the national transporta- Results were released on April 14 in part via Lastly, Minnesota and Wisconsin are studying the tion future, and even willingness by respondents Thunderclap, a website that allows organizations feasibility of a second daily Twin Cities-Milwaukee- to advocate on behalf of passenger rail — asked to simultaneously send one message across the Chicago train on the Empire Builder route. if they were willing to be contacted for future social media platforms of those who sign up to advocacy campaigns and to provide an email participate. • North Dakota is updating its rail plan. address, 31 percent of respondents (almost 6,000) • Wisconsin’s Department of Transportation is said yes and did so. Article written by Jon Davis, a CSG Midwest policy analyst. studying whether to increase Milwaukee-Chicago The survey also shows that 88 percent of re- He can be reached at [email protected]. Hiawatha service from seven daily round trips to 10. spondents are “not at all aware” or only “somewhat

4 STATELINE MIDWEST APRIL 2016 QUESTION OF THE MONTH in criminal activity through use of a drone” — and QUESTION: Have any states banned weaponized drones with legislation make it an unspecified felony to use a drone, or direct that restricts or regulates the use of these unmanned aerial vehicles? or supervise use of a drone by someone else, in the commission of 28 underlying offenses.

When videos emerged online last year showing Estimated economic impact of drones, Drone-related legislation in the Midwest also ad- armed drones firing a pistol and roasting a turkey 2015-2025 (U.S. rank in parentheses)* dresses privacy concerns or would restrict their uses with a homemade flame thrower, legislators nation- by law enforcement agencies. Some bills would ban wide took notice. Now bills proposing to ban the use drones from being flown near or over airports, or over $83M of armed drones are appearing in state legislatures state prisons. Others would ban the use of drones to (48) $853M across the country. (27) interfere with legitimate hunting or fishing, or even $56M $527M ban their use to actually hunt or fish. The most recent example is Connecticut, whence the (49) (34) $1.13B (22) most infamous of those videos emerged. Legislators $956M Illinois and Wisconsin would criminalize flying in the Nutmeg State responded with HB 5274, which $149M (24) $2.15B drones over state prisons; Illinois’ HB 4538 and SB 2344 (44) $1.23B $1.25B (13) would ban equipping drones with deadly weapons, (21) (20) would also make the dropping of contraband from a explosives, tear gas “or any like or similar deleterious $2.94B drone punishable by an additional year added to cur- agent.” Under this bill, the penalty for “weaponizing (7) rent felony penalties for delivering contraband. Wis- drones” would be a prison term of one to 10 years and * The projected national economic impact of drone manufacturing, if drones are consin’s SB 497 and AB 671 would create enhanced a fine of up to $10,000. integrated into the National Airspace System, is $82.1 billion. penalty provisions for using a drone in commission Source: Association for Unmanned Vehicle Systems International (2013) of a controlled-substance-related crime. Wisconsin is the first and, as of early April, only Mid- western state to ban weaponized drones, having Nebraska’s LB 720 would make the person operating approaches. Michigan’s HB 4868 doesn’t include the enacted a law in 2014 making operation of one a a drone liable for invasion of privacy if his or her drone phrase “weaponized drone,” but would ban myriad felony punishable by a prison term of up to six years flies less than 200 feet above the ground level of uses of drones, including “for the purpose of com- and/or a fine of up to $10,000. Outside the region, private property without the owner’s consent “while mitting an act that is punishable as a felony or mis- Nevada, North Carolina and Oregon now prohibit capturing any type of visual image, sound recording, demeanor under the law of this state.” weaponized drones. or other such physical impression.” HF 3517 in Minnesota would make operating drones As of March, Kansas appeared to be the only Mid- “in such a manner as to indicate either a willful or wan- western state considering an overt ban; HB 2397 Article written by Jon Davis ([email protected]), CSG policy analyst, ton disregard for the safety of persons or property” would ban weaponized drones as part of the Un- and assistant editor. Question of the Month highlights an inquiry or carrying “any explosive substance” on drones (un- manned Aerial Vehicle Regulation and Privacy Act. sent to the CSG Midwest Information Help Line: [email protected] less permitted by federal law) misdemeanors. Ohio’s or 630.925.1922. Michigan, Minnesota and Ohio are mulling broader HB 228 would establish a new crime — “engaging Almost 180 years ago, Ohio opened the door to bilingual education

by Mike McCabe ([email protected])

ew issues related to American education wherever large German populations lived. The goal learning merely slows the assimilation process that policy have consistently stirred more contro- was not to replace English (many German immigrants many view as essential to the long-term economic Fversy over as many years as has the question were quick to adopt the English language) as much and cultural success of newly arrived immigrants. of how best to teach students whose first language as it was to preserve the German tongue while also The outlines of this familiar divide were apparent is something other than English. making it easier for German-language speakers to long before Ohio adopted its groundbreaking statute In a nation whose history is marked by waves learn in American schools. in 1839, and bilingual education has fallen in and out of newcomers arriving from countries around the As taxpayers who contributed significant financial of favor numerous times through the decades. The world, the appropriate language of public education support for public schools, the German community First World War ushered in a wave of anti-German has been debated since the first European eventually prevailed, and the statute ad- sentiment and temporarily ended the expansion of settlers arrived in the 17th century, and the opted by the legislature in 1839 (which non-English education nationwide. pendulum of public opinion on the subject permitted German instruction in public By 1923, 34 states had passed “English-only” has swung many times. schools upon the request of a sufficient laws mandating the exclusive use of English in public The debate over bilingual education number of parents) was soon emulated school instruction, and — until the Supreme Court First in the Midwest: and competing models for the instruc- in other states and territories. intervened by striking down one such law — some Ohio and bilingual even banned the study of foreign languages entirely. tion of non-English speaking students education laws By the end of the 19th century, at may be rooted in our colonial past, but least a dozen states had adopted laws Not until after World War II did the United States it wasn’t until 1839 that Ohio became authorizing bilingual education in their begin warming again to the concept of bilingual the nation’s first state to formally authorize bilingual public schools. education. The Bilingual Education Act of 1968, for teaching in public schools. German was the leading alternative to English at example, provided funding for the establishment of Prior to that time, English and the favored the time, with more than 600,000 primary education bilingual education programs for English-language languages of various immigrant groups frequently co- students receiving instruction in that language. learners. A landmark U.S. Supreme Court decision six existed in close proximity. English was commonly the Representing 4 percent of all elementary students years later required public schools to adopt strategies language of instruction in public schools, but other nationwide, that was a larger share of the total than to meet the educational needs of their non-English languages were just as likely to be used exclusively the portion of U.S. students who were receiving speaking students, and a wave of state bilingual in private or parochial schools serving immigrant instruction in Spanish a century later. education laws soon followed. populations clustered in specific areas. The proponents of bilingual education have More recently, though, the scales shifted again with passage of the No Child Left Behind Act; it ef- By the time Ohio entered the union in 1802, always argued that exclusive instruction in a second fectively supplanted the Bilingual Education Act and the new state was home to a large and politically language (through a language immersion program, made clear that acquisition of the English language influential population of German immigrants. State for example) is not enough to ensure the acquisition of should be the primary objective of any bilingual laws were routinely published in German as well as that language. They contend that bilingual education, education strategy. English, for example, and the German community on the other hand, helps to facilitate a dual language was well-represented in the state legislature. learner’s academic success, as well as the eventual Previous articles from CSG Midwest’s First in the Midwest These factors helped fuel a growing demand for acquisition of a second language. series are available at www.csgmidwest.org. German to be taught and spoken in the public schools But opponents contend that dual language

STATELINE MIDWEST APRIL 2016 5 COVER STORY

CONTINUED FROM PAGE 1 Federal gambling law from 2006 has put future of fantasy sports in the hands of states

of smaller operators closing their businesses and not being able to pay players. Daily fantasy sports: Recent laws, legislation and legal opinions in Midwest Many of the proposed bills in 2016 try to address these concerns, while protecting game According to Legal Sports Report, Illinois is one of eight U.S. states where a state attorney general has said or has issued a legal opinion concluding that daily fantasy sports is illegal gambling. As of early April, Illinois lawmakers participants in other ways as well. were considering three bills (HB 4323, SB 2193 and SB 2843) to legalize and regulate this activity. Current Illinois Indiana’s SB 339, for instance, prohibits the criminal code prohibits the playing of “games of chance or skill for money.“ employees of a fantasy game operator from com- peting in contests with cash prizes that exceed $5. Indiana became one of the first U.S. states this year to pass a bill legalizing and regulating daily fantasy sports. Signed into law in March, SB 339 includes an initial licensing fee for game operators ($50,000 to $75,000). It also requires the Game operators must also contract with a certified operators of fantasy sports games to verify the age of participants (must be 18 or older), divulge up front the games’ public accountant for annual financial audits, and prizes and awards, and maintain the security of each participant’s financial information, among other regulations. they must segregate their operational funds from Iowa is one of only a handful of states nationwide where daily fantasy sports is not currently offered by game the funds of game participants. operators. “Our overriding language on what constitutes gambling is very restrictive,” Sen. Jeff Danielson Another provision in the Indiana law requires explains, ”so something like fantasy sports is considered illegal until we expressly authorize it.” He and others that game participants be at least 18 years old, and have introduced bills this year (SF 166 and HSB 47) to legalize fantasy sports contests. a newly created fantasy sports division, housed Last year, Kansas legislators passed HB 2155, which exempts daily fantasy sports from the state’s gambling within the Indiana Gaming Commission, will code. Prior to the bill’s passage, Attorney General Derek Schmidt issued an opinion stating that fantasy sports handle oversight responsibilities. leagues are games of skill and are not lotteries. (Under the Kansas Constitution, lotteries must be state-owned Operators will have to pay an initial licensing fee and -operated.) of between $50,000 and $75,000, as well as a yearly In late 2015, the Michigan Gaming Board initiated a study of daily fantasy sports in the state, including a review of fee of $5,000. Ford says these fees were included to its legality under current law, its impact on casinos, and taxation of the activity. SB 459 has also been introduced offset the cost of oversight and to legalize activity related to fantasy sports. regulation; proposals in some other states have included As of early April, bills (HF 2540 and SF 3007) to legalize daily fantasy sports and regulate the operators were making their way through the Minnesota Legislature. According to Rep. Joe Atkins, some of the key differences these provisions as well. in the competing proposals included whether to require game operators to register with the state, complete But Marc Edelman, an background checks, and submit annual accounting audits done by a third party. associate professor of law at Baruch College’s Zicklin School According to the Omaha World Herald, legislative efforts inNebraska to define and codify fantasy sports as a “game of Business, warns that if a state of skill” ended in defeat in February. Opposition centered on concerns that the bills (LB 862 and LB 970) expanded gambling in the state and conflicted with the Nebraska Constitution. Indiana Sen. establishes high licensing fees, Jon Ford it could be “in essence exclud- Wisconsin legislators adjourned earlier this year without acting on proposals to legalize “fantasy games,” in part by ing all but the largest daily defining them as neither betting nor a lottery. The operators of daily fantasy games would have been required to register fantasy sports companies.” with the state and pay an initial fee of $150,000 and annual fee of $30,000. The bills set various other rules — for example, verifying that players are at least 18 years old and preventing the relatives of game operators from playing. Without new laws, daily fantasy sports stops in some states “Across the states where [daily fantasy sports] is allowed, As of early April, Indiana was one of only a few states where daily fantasy sports legislation had there will be a patchwork of regulatory approaches.” become law. If this inaction persists, one potential Chris Grove, publisher of Legal Sports Report consequence is that daily fantasy sports activity gets shut down in more jurisdictions. (According to Legal Sports Report, as of March, there were already In late 2015, Illinois Attorney General Lisa The 2006 federal legislation became law before 10 states, including Iowa, where most or all daily Madigan issued a legal opinion that daily fantasy the proliferation of daily fantasy sports operators, fantasy sports operators did not take customers.) sports were illegal under her state’s current crimi- but most observers do not expect the U.S. Congress nal code, which prohibits the playing of “games of to revisit the “fantasy exception” anytime soon. chance or skill for money.” “I have a hard time imagining this issue being Numbers on fantasy sports and the A handful of other attorneys general have resolved at the federal level,” Grove says. people who play it reached similar conclusions about the legal status In the state legislation introduced this year, of daily fantasy sports in their states. some of the language from that 10-year-old federal  In 2015, there were more than 56 million “I think a significant amount of the population law is often used — for example, defining fantasy people playing fantasy sports in the United States will not be able to take part in the games due contests as ones in which “all winning outcomes and Canada to restrictions at the state level,” Chris Grove, reflect the relative knowledge and skill of the publisher of Legal Sports Report, says about the participants.”  The average age of a fantasy sports player is near-term future for daily fantasy sports. That word “skill” is es- 37; most are men (66 percent) “Across the states where the activity is allowed, pecially important in states  On average, a fantasy sports player spends there will be a patchwork of regulatory approaches where the legal status of a $465 on this activity in a year’s time ($257 on daily that share some DNA, but differ on key points like game can depend on whether age, level of regulation and so on. It’s also possible its outcome is predominantly contests, $162 on traditional fantasy sports and $46 that we’ll see some states restrict [daily fantasy based on “chance” or the on materials) sports] to intrastate play only.” “skill” of participants.  Football is the most popular fantasy sport The future of daily fantasy sports is in the And to Iowa Sen. hands of states because of a 2006 federal law: the Danielson, understanding Minnesota Rep. Unlawful Internet Gambling Enforcement, an that distinction is also cru- Joe Atkins anti-gambling measure that included an exception cial to crafting smart policy for “participation in any fantasy or simulation — not only with regard to sports game.” fantasy sports, but what he calls a broader range So while the federal government currently of “electronic prediction markets.” forbids most states from allowing sports betting “It is not all that difficult to assess the level of (under the Professional and Amateur Sports skill vs. chance in playing a game,” he says. With Protection Act), this does not apply to fantasy fantasy sports, Danielson believes skill clearly Sources: Fantasy Sports Trade Association (data) and dreamstime.com (photo) sports. determines outcomes more than mere chance.

6 STATELINE MIDWEST APRIL 2016 FEATURE STORY

“It’s basically peer-to-peer, variable-in-market among the nation’s strongest. Those provisions # of people in U.S., Canada playing predictions,” he says. “It gives you the opportunity (established by the Massachusetts attorney to do your homework and come up with better fantasy sports: 2005-2015 general) include: predictions than your peers.” 60 million • setting the minimum age for playing in Last year, Danielson introduced a bill to not fantasy sports games at 21 and not allowing only legalize fantasy sports, but to authorize 50 million operators to promote the activities on schools and fantasy prediction markets in politics (contests college campuses; 40 million based on the race for president, for example). • requiring any advertising of daily fantasy Rep. Atkins, too, says the debate this year in 30 million sports that mentions average individual winnings state capitols over fantasy sports reflects a larger to also disclose the average net winnings of all policy issue that legislators likely will be tackling 20 million players; for years to come. • limiting deposits of game players to $1,000 “It’s this entire area of online participation of 10 million (unless the operator can verify that an individual games that have participation fees and payouts,” player can sustain losses higher than that amount); he says. “We’ve only seen the tip of the iceberg.” 0 2005 2010 2015 and He adds that some key lawmakers in Minnesota, Source: Fantasy Sports Trade Association • setting aside games for beginners only Republican and Democrat, have expressed interest (excluding experienced players who tend to win in exploring the legalization most of the prizes). of sports betting. Traditionally, professional sports leagues have But the first step in most of this year’s state pro- “It’s somewhat akin to the been among the leading opponents of legalized sports posals is to legalize, and that can be tricky. Based on arguments for fantasy sports,” betting (in contrast, they have supported fantasy the wording of the bills or the types of daily fantasy Atkins explains. “It’s already sports). occurring, and yet there’s no sports being offered, Edelman says, a state’s intent But what if the NFL expands to England, a country to legalize may or may not withstand legal scrutiny. oversight and no assurances with legalized sports betting? Edelman asks. Would for players that they’re going If these new laws only allow for games of skill, for the league’s stance soften or change? Could that, in example, that still leaves open the question of whether to get paid. They are very turn, change the minds of members of U.S. Congress? Iowa Sen. a particular fantasy contest meets this definition. similar arguments. Or what if the state of New Jersey prevails in its Jeff Danielson “If it can be shown that a particular format does “But the one difference current legal fight (now pending in federal court) not meet the necessary state threshold of skill,” he is that there is no ambiguity to legalize sports betting? Would more states see says, “the game remains illegal.” about sports bookmaking: It is illegal.” legalization as a way to tax and regulate this activity? At least for now. Edelman points in particular to certain “against According to Edelman, bigger changes might Wording of state laws on fantasy the house” games for individual sporting events be coming sooner rather than later. sports can make big difference (contests involving a golf tournament or a NASCAR “I would not be surprised if five years from now, race) that could remain illegal, depending on a state’s state and federal laws change substantially to allow Of the various state regulations on daily fantasy statute on gambling and how its lawmakers ultimately for widespread sports gambling of all types,” he says. sports, Edelman points to Massachusetts as having define fantasy sports.

Timeline of trends, changes in state gaming activity and laws in the Midwest

1972: Michigan at Forefront of State-Run Lotteries With voters’ approval of a constitutional amendment, Michigan became an early adopter of a state lottery. All other states in the Midwest eventually followed Michigan’s lead, with North Dakota being the last to do so in 2003.

1988: South Dakota Brings Gaming to Deadwood South Dakota voters approved limited-stake gaming in the historic Old West town of Deadwood — an important milestone in U.S. gambling expansion.

1988: U.S. Congress Passes Law on Indian Gaming Passage of the federal Indian Gaming Regulatory Act provided the regulatory framework for tribal authorities to conduct gambling operations (state consent is required in some instances). Twenty-eight U.S. states now have Indian gaming, including Iowa, Kansas, Michigan, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin.

1989: Iowa Takes Riverboat Plunge Iowa became the first U.S. state to legalize riverboat gaming. Today, Illinois, Indiana, Kansas, Michigan and Ohio are now among the other states that have riverboat and/or land-based commercial casinos. Iowa also was the first Midwestern state, and one of the first in the United States, to legalize casino-type gambling inside racetracks. “Racinos” are now allowed in Indiana and Ohio as well.

2012: Illinois Launches Online Lottery Sales Illinois was the first U.S. state to sell lottery tickets over the Internet. Since 2014, the Illinois Lottery has also made a mobile app available for use on smart phones. Lottery spokesman Steve Rossi told the Chicago Tribune in March that online sales have brought in $68 million for education and construction projects in the state.

2015: Kansas Green-Lights Fantasy Sports Kansas became one of the first U.S. states to make statutory changes in the wake of the dramatic rise in popularity of fantasy sports. Its law legalized fantasy sports; many other proposals are now under consideration in the Midwest (see page 6).

STATELINE MIDWEST APRIL 2016 7 STATELINE PROFILE North Dakota Rep. Kenton Onstad Lawmaker from heart of Bakken oil boom reflects on changes to his home district, looks ahead to state’s fiscal and leadership challenges

by Laura Tomaka ([email protected])

or more than 100 years, Kenton Onstad’s family has called western North Dakota home — a place Bio-sketch of Rep. Kenton Onstad Fthat for decades was a quiet, sparsely populated area made up mostly of family farmers.  House minority leader since 2013 (assistant Then came the oil boom. minority leader in the 2007, 2009 sessions); served “Before, I maybe would get the mailman, my in North Dakota House since 2001 neighbor and his hired man driving on the road by me,” Onstad recalls. “Now overnight, an oil well comes  former high school teacher; works at Mountrail- and all of a sudden you have 100 to 200 trucks driving Williams Electrical Cooperatives, manages family farm daily by your place.”  Onstad’s hometown of Parshall is where the oil lives in western North Dakota city of Parshall with boom started in 2006 (the first well was drilled just his family a few miles from his home), and ever since then, the changes from hydraulic fracturing activity have transformed his district and shaped his work in the “Before, I maybe would get the mailman, my neighbor legislature. “To take a community of 1,000 [people], and then and his hired man driving on the road by me. Now, it’s 5,000 six years later, you didn’t have a water system overnight, an oil well comes and all of a sudden you have compatible for that. You didn’t have a school system compatible,” Onstad says. 100 to 200 trucks driving daily by your place.” “You created a whole new town in five years. My only comparison is back when the railroad came in and developed the country, and every seven miles they North Dakota has swung from budget How do you view your role as minority leader needed a town, and towns sprung up and [provided] Q: surpluses to a projected $1 billion deficit Q: and your leadership style? services. ... But that took many, many years. All this for this biennium. How do you feel North Dakota We have to lead our party and our caucus into [development in North Dakota] happened here in a has positioned itself to face the global decline in A: the next generation. I saw this need and that’s short period. Nothing like this has ever happened.” oil prices? why I sought the leadership position. I don’t want to The Onstad family began farming near Parshall We became more dependent on oil ... and I just be here forever. That was never my intent. We need to more than a century ago (the family farm was des- A: think we went the route of trying to lower some transition and get our younger caucus members more ignated a “North Dakota Centennial Farm” in 2013), revenues [such as income tax]… and now we are in that involved, and develop and use their energy, their social and he has proudly carried on the family tradition of crunch right now because of how much we cut some skills, and their IT skills. I was a football coach for a being an active part of the community. revenues. I think that we could have done a better job number of years and I use coaching analogies a lot: Onstad has been a math teacher at the local high recognizing that this is a commodity and those prices The head coach leaves, the next head coach comes in, school, coached the football team and, later on, got go up and down and it’s a world market. If we could and the team carries on. That’s what I’m trying to do involved in local politics. Then came his first election control that world market, yeah, that’s wonderful, but with our caucus — keep them excited and have them to the North Dakota House in 2000. you can’t. The state of North Dakota can’t. understand their role and cultivate them so you have “I thought I was only going to do this for 12 years, a winning team. and if I lasted for 12 years, that would be good,” he Looking ahead to the 2017 legislative session, recalls. Q: in addition to dealing with the decline in oil Democrats currently have 23 of 94 members But Onstad now has been in the North Dakota activity and state revenues, what other issues will Q: in the House, and your caucus has been in the House for a decade and a half, and has been serving you and your colleagues face? minority for many years. How do you motivate your as minority leader since 2013. The major issue is our incarceration rate. Our caucus and help ensure that members feel relevant As one of the few members in his caucus from A: population was declining in the early 2000s and to the process? the western part of the state, and the only House all of a sudden it expanded and crime went up — hu- You have to understand who you are represent- Democrat in a district that is actively producing oil, man trafficking, drugs, and things that came along with A: ing. Your constituents, whichever district you he has a unique voice and perspective. In a recent it. Our prison system is just exploding. And so it’s going came from, elected you to represent them. So when interview with CSG Midwest, Onstad reflected on his to be an issue to find alternatives to incarceration. The you go to vote and think about a bill, always remember legislative career, North Dakota’s oil boom and recent trouble is that it’s not going to be cheap, but we need to who you are representing; and that’s your driving force downturn, and what he sees as likely topics in the come up with some solutions. Sixty percent of people to be their voice. 2017 session. Here are excerpts from that interview. that are behind bars are not there for serious crimes. When I first came, everybody worked together. We have to work out better education programs. We They weren’t all about who is taking credit. You saw In addition to trying to address some of the have to correct this thing. across-the-aisle stuff, and then all of a sudden it gets Q: infrastructure needs that came with the We are going to have some serious discussions to be partisan … I disagree with that. People elect oil boom, what have been some of your legislative about higher education and K-12 funding. And then you and they expect you to go to Bismarck to make priorities for your district and its constituents? I think we have to make a decision that if we want to policy that is good for everyone. If we are not getting When the oil development came in, I recog- have working families, we have to have early child- along in Bismarck, they look at it and [ask about] A: nized an imbalance between the landowners hood education, day care, and those kinds of things. what is going on. and the oil investing, so I have championed the If you want families to come to the state, you have to My point is that we are not here to play games; it [rights] of landowners — working toward annual help provide some of those amenities. You don’t have is not a power struggle. I just want to get good legis- payments, better compensation for damages, trying to provide it totally but we have to create a system lation. And I encourage my caucus [members] that if to protect their property rights while not to the that helps [lead to] affordable day care and early they want good legislation, then they vote for what is detriment of development. childhood development. good for their constituents.

8 STATELINE MIDWEST APRIL 2016 FIRST PERSON A FORUM FOR LEGISLATORS AND CONSTITUTIONAL OFFICERS Higher pay for teachers coming as part of legislative actions in 2016 Laws also aim to improve school efficiency, teacher retention by South Dakota Rep. Jacqueline Sly

he statements have been loud and clear: South Average salary of public school pipeline challenges. South Dakota has many small Dakota does not have enough teachers to fill teachers in Midwest, 2012-13 (U.S. school districts, so consolidation was part of this Topen positions. rank in parentheses)* discussion. “Districts once had many applicants for open- But rather than forcing schools to close, legisla- ings, but now there are only a few or even none ...” $47,344 tors decided to work with districts to find new “Our state’s teacher pay is the lowest in the (40) $56,268 efficiencies and support. For example, voluntary nation ...” (17) shared services at the state level and incentives $39,018 “Teachers are leaving the state to teach $53,797 for shared staff among districts will help utilize (51) (21) $61,560 elsewhere ...” services and staff more efficiently. Small schools $50,946 (11) Our governor created a task force to address $48,842 (26) in South Dakota already come together in order to (32) $56,307 these and other concerns of South Dakotans about $59,113 field sports teams, and the same thing can happen $50,077 (16) (13) in sharing staff — whether that means teachers or teacher pay and school funding, but he wanted data $47,464 (28) to guide our decision-making and policy recom- (39) school administrators. mendations. He charged the task force (of which I SB 133 will also expand the state’s capacity to served as the co-chair, along with Sen. Deb Soholt) * The U.S. average is $56,065; rankings include the 50 states and the offer online learning. A state university already has District of Columbia. with re-evaluating our current school funding Source: National Education Association been offering this help for rural and small schools formula, collecting and analyzing data, engaging that could not hire teachers for higher-level with stakeholders and seeking public input. classes, and demand has risen because schools During the course of almost a year, through listen- continued throughout the process. The reason: The cannot fill positions. Additional state dollars will ing sessions and meetings with educators, business state has had multiple interim studies, work groups provide access to these online learning opportuni- leaders and community members, some very clear and task forces in the past. None has resulted in ties. We also have created an innovation grant to themes emerged: any major changes in funding education. incentivize teacher training and classroom access • Schools matter to a community. For years, the state has not systematically to virtual education. • The most important factor in student success looked at all the different ways we fund education. This legislative package should improve is the presence of a highly qualified teacher. (The current funding formula had been in place teacher recruitment and retention as well. We lose beginning teachers faster than at any other • All students should have equal access to for 20 years.) The actual formula was equitable, time of their career, so we will support mentoring learning opportunities. but revenues outside the formula created great programs and summer camps for people new to • South Dakota faces a teacher shortage. inequities among our school districts. the profession — investments that we believe will • No one plan will fit the needs of all districts, Each step of the process began to prove — with pay off in the long run. and funding equity is essential. data — what had been said for years. Once this With these three bills now signed into law, • Citizens expect that tax dollars are to be used was done, there was no denying the challenges the framework is in place. Implementation is the cost-effectively. of funding, shortages of teachers, and the lack next step. of competitive salaries. Based on the task force’s Furthermore, any sustainable solution for the Given time, adjustments can be made to recommendations, the governor introduced a issues we faced would require significant ongoing strengthen the plan. Is the plan perfect? Of course package of bills this year. By the end of our legisla- revenue. In addition, quantitative data were pre- not. Is there a perfect plan? No. Is it a positive step tive session, they all had been signed into law. sented to the task force. Some major findings were: to address the needs of South Dakota? Yes. It is a For starters, we needed to find a stable, • South Dakota’s average teacher salaries rank beginning, not an end. sustainable source of revenue. With HB 1182, the last in the nation. As Margaret Mead once said, “Never doubt that Legislature increased the state’s sales tax rate by 0.5 • Even adjusted by a comparable-wage index, a small group of thoughtful, committed citizens salaries in South Dakota are behind our next- percent — a major change in policy, considering can change the world. Indeed, it is the only thing lowest neighbor by more than $8,500 per year. the rate had not been changed since 1969. that ever has.” The Legislature and citizens of •Teacher turnover is large, with salaries being The second bill, SB 131, addressed our state’s South Dakota proved her words to be true. a significant factor. funding formula and the different sources of • The incoming pipeline of teachers will not revenue that school districts use. The foundation Rep. Jacqueline Sly, a Republican from Rapid City, was meet our state’s projected needs. for this new formula is a targeted average teacher first elected to the South Dakota House of Representatives • The current funding formula, based on salary and a student-teacher ratio based on the in 2008. A former teacher, she also co-chairs the a per-student allocation, is derived from a set size of the district. (Percentages for benefits and Midwestern Legislative Conference Education Committee. amount of money available, not the specific needs overhead are also added into the formula.) of a district. Accountability was also important to many legisla- • Capital outlay tax collections have risen tors; as a result, new reporting provisions and sanctions Submissions welcome significantly and exceed the national average. will ensure that these new state dollars go to teacher This page is designed to be a forum for legislators and • Reserve fund balances, on average, tend to salaries and benefits. In addition, every three years, a constitutional officers. The opinions expressed on this page be larger than is typical nationally. review board will compare salaries in the region and • Other revenues create funding inequities. recommend action to keep South Dakota competitive. do not reflect those of The Council of State Governments or the Midwestern Legislative Conference. Responses to any From skepticism to legislative action Focus on efficiency and retention FirstPerson article are welcome, as are pieces written on other topics. For more information, contact Tim Anderson There was much skepticism among education he third part of this legislative package, stakeholders, some legislators and the public as SB 133, addressed efficiencies in schools, at 630.925.1922 or [email protected]. the task force began its work, and the distrust Tstudent learning opportunities and teacher-

STATELINE MIDWEST APRIL 2016 9 CSG MIDWEST NEWS & EVENTS

Featured speakers confirmed for MLC Great Lakes legislators meeting; registration discount available to meet in Milwaukee prior to MLC event Nonpartisan event brings together legislators from 11 states, four provinces n the two days leading up to the Midwestern he only event developed for and by the Other sessions will focus on water policy and Legislative Conference Annual Meeting, Midwest’s state and provincial legislators will state budgets, and as part of Wisconsin Rep. Joan Istate and provincial legislators interested in Tbe held July 17-20 in Milwaukee. Ballweg’s MLC chair’s initiative, the meeting will Great Lakes policy and protection will gather Registration for the Midwestern Legislative include programming on the importance and in downtown Milwaukee. Conference Annual Meeting can be completed at value of investing in families at the early stages Registration materials for the Great Lakes www.csgmidwest.org. A registration discount for of childhood development. Legislative Caucus meeting are available at legislators is available through May 10. The family-friendly conference will also offer www.csgmidwest.org. In most jurisdictions, The event will feature a mix of public policy numerous daytime activities for guests of all ages, travel scholarships are still available for legisla- sessions, professional development workshops, and as well as evening social events for everyone. tors to attend this two-day event. featured speakers and presentations (see below). Rep. Ballweg, chair of the MLC for 2016, is The meeting will begin with multiple sessions or- leading her home state’s planning efforts. CSG ganized by the MLC’s five interstate legislative policy Midwest provides staff support to the MLC, a committees on agriculture, economic development, nonpartisan group of all legislators from 11 states education, health care and Midwest-Canada relations. as well as four affiliate provinces.

Overview of this year’s featured speakers and presentations A Political Junkie’s Guide to the 2016 Elections Ken Rudin | Monday, July 18 Ken Rudin is one of America’s foremost experts in politics and campaign history. For most of the past 20 years, Mr. Rudin was the eyes and ears of Activities on July 15 will include an optional NPR’s political coverage as its political editor and resident “political junkie.” site visit to the state-of-the-art facilities of the He now hosts the weekly “Ken Rudin’s Political Junkie” program and is a University of Wisconsin-Milwaukee’s School of columnist for USA TODAY. Freshwater Sciences. During their visit to this renowned research institution, legislators will Big Thirst: The Midwest’s Water Future learn about ongoing research into water issues Charles Fishman | Monday, July 18 and the health of the Great Lakes ecosystem. Charles Fishman’s highly acclaimed book “The Big Thirst” has become a must-read The site visit will conclude at Discovery for business and political leaders wanting to understand our most essential, but World, a science and technology center located often misunderstood, resource: water. The award-winning journalist’s insights on the shores of Lake Michigan. will help explain how and why water resources will come to define this century On July 16, lawmakers will take part in the Midwest. in sessions on the Great Lakes Restoration Initiative, the revitalization of Great Lakes Effective Communication in a Polarized Environment communities, and the ecological health of Lake Kathleen Hall Jamieson | Tuesday, July 19 Michigan. Peter Annin, author of the “Great A leading national authority on political communication, Kathleen Hall Jamieson Lakes Water Wars,” will be this year’s featured serves as director of the Annenberg Public Policy Center at the University of luncheon speaker. Pennsylvania. She also is the author or co-author of 16 books and the co-founder The caucus also will consider policy resolu- of factcheck.org — the award-winning, nonpartisan online resource that functions tions at its annual meeting. For a resolution as a “consumer advocate” for U.S. voters. to be considered, it must be submitted to Lisa Janairo by June 24. For information, please Words and Speeches that Changed American History contact Lisa at [email protected] or 920.458.5910. Stephen Lucas | Meeting Luncheon Stephen Lucas is the Evjue-Bascom professor in the humanities at the University of Wisconsin. An expert on American political discourse from the Declaration Officers of the Great Lakes of Independence to the present, he was nominated for a Pulitzer Prize, has won Legislative Caucus numerous awards for his teaching, and has spoken to enthusiastic audiences around the globe. The Future of Work and Skills in the “Man-Machine Age” Ayesha Khanna | Meeting Luncheon In this future-looking presentation, technology and education expert Ayesha Khanna will explore the coming workforce challenges in the “man-machine hybrid age.” Which industries will still require human labor, and which will be automated? How can individuals train themselves to be proficient in new technologies so that they can design Wisconsin Rep. Michigan Sen. Darwin and work with smart machines? Ms. Khanna will explore these questions and more. Cory Mason, chair Booher, vice chair

The Council of State Governments was founded in 1933 as a national, nonpartisan organization to assist and advance state government. The headquarters office, in Lexington, Ky., is responsible for a variety of national programs and services, including research, reference publications, innovations transfer, suggested state legislation and interstate consulting services. The Midwestern Office supports several groups of state officials, including the Midwestern Legislative Conference, an association of all legislators in 11 states: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. The Canadian provinces of Alberta, Manitoba, Ontario and Saskatchewan are MLC affiliate members.

10 STATELINE MIDWEST APRIL 2016 CSG Midwest brings workshops on Great Lakes policy to Minnesota and Michigan

SG Midwest hosted two workshops on Great Lakes policy in St. Paul, Minn., and Lansing, Recent Under the Dome events held CMich., as part of its continuing efforts to in Midwest’s state capitals deliver customized programming to legislators in their state capitals. • Budget policy ~ Illinois CALENDAR The April events were organized with help and • Entrepreneurship policy ~ Nebraska input from lawmakers in these two Midwestern states. Minnesota’s workshop included presentations on • Ethics training ~ Indiana UPCOMING MIDWESTERN LEGISLATIVE CONFERENCE AND THE COUNCIL OF STATE invasive species prevention, ballast water technologies • Medicaid expansion ~ South Dakota and policies, and the cleanup of “Areas of Concern” GOVERNMENTS EVENTS under the Great Lakes Restoration Initiative. • Legislative civility ~ Nebraska and Ohio During the event in Michigan, participating • Great Lakes/water policy ~ Illinois, GREAT LAKES LEGISLATIVE lawmakers examined trends in Great Lakes Michigan, Minnesota and Ohio CAUCUS MEETING policy and protection with the help of two leading • Health policy, wellness and the July 15-16, 2016 authorities: Tim Eder, executive director of the Affordable Care Act ~ Wisconsin Milwaukee, Wisconsin Great Lakes Commission, and Jon Allan, director of the state’s Office of the Great Lakes. Contact: Lisa Janairo ([email protected]) 920.458.5910 The Great Lakes Legislative Caucus organized www.greatlakeslegislators.org these two workshops in conjunction with the Midwestern Legislative Conference’s Under the 71ST ANNUAL MEETING OF THE Dome initiative. (CSG Midwest provides staff MIDWESTERN LEGISLATIVE support to the caucus and the MLC.) CONFERENCE Three Under the Dome initiatives have been held July 17-20, 2016 so far this year. The first was a training session on Milwaukee, Wisconsin legislative ethics held at the Indiana Capitol. A cost-free membership service of the MLC, Contact: Gail Meyer ([email protected]) Under the Dome programming can range from ses- 630.925.1922 www.csgmidwest.org sions on public policy to workshops on professional development. It is available to the 11 states and four Canadian provinces of the Midwestern Legislative 22ND ANNUAL Conference. BOWHAY INSTITUTE FOR LEGISLATIVE LEADERSHIP DEVELOPMENT (BILLD) Programming is typically held in the state or August 12-16, 2016 provincial capitol, and the event must have the Madison, Wisconsin support of the leaders of each legislative caucus. For more information on Under the Contact: Laura Tomaka ([email protected]) Dome, please contact CSG Midwest director Minnesota Sen. Roger Reinert, a member of the Great 630.925.1922 www.csgmidwest.org Mike McCabe at [email protected] or visit Lakes Legislative Caucus, makes introductory remarks www.csgmidwest.org. at the March policy workshop in St. Paul, Minn. CSG HENRY TOLL FELLOWSHIP PROGRAM August 26-31, 2016 CSG leaders travel to Kentucky for spring meeting Lexington, Kentucky Contact: Kelley Arnold ([email protected]) eaders from the judicial, executive and legisla- 800.800.1910 www.csg.org/LeadershipCenter/TollFellows.aspx tive branches of state government will meet CSG Leadership Council members Lin mid-May at CSG’s national headquarters from the Midwest in Lexington, Ky. CSG NATIONAL CONFERENCE The Council of State Governments is the na- December 8-11, 2016 tion’s only organization serving all three branches, Colonial Williamsburg, Virginia and a CSG Leadership Council oversees its im- Contact: Kelley Arnold ([email protected]) mediate functions — for example, enacting official 859.244.8000 policies, approving interim policy statements and www.csg.org conducting organization-wide strategic planning. Wisconsin Rep. Nebraska Sen. Kansas Sen. This council, which will meet all day on May Joan Ballweg Beau McCoy Vicki Schmidt 72ND ANNUAL MEETING OF 14, includes three legislators from the Midwest: THE MIDWESTERN LEGISLATIVE Wisconsin Rep. Joan Ballweg, Midwestern CONFERENCE Legislative Conference chair; Nebraska Sen. Beau Fellows are chosen annually by a bipartisan panel July 9-12, 2016 McCoy, national CSG chair; and Kansas Sen. Vicki of program alumni. Des Moines, Iowa Schmidt, co-chair of the CSG Finance Committee. CSG’s Shared State Legislation Committee Contact: Gail Meyer ([email protected]) Also as part of CSG’s Spring Business Meeting, includes legislators and legislative staff from 630.925.1922 www.csgmidwest.org the next class of Toll Fellows will be selected across the nation. It meets to review bills adopted and potential “shared state legislation” will be in the states and to select measures to be included considered. in the annual volume of Shared State Legislation. The Henry Toll Fellowship Program is an The goal of Shared State Legislation is to “intellectual boot camp” for emerging leaders facilitate the exchange of legislative ideas among in all three branches of state government. Toll CSG members.

STATELINE MIDWEST APRIL 2016 11 CAPITOL student mustgraduate inthetop 20percent five years. To beeligiblefor ascholarship, a must agree to teach inanIndianaschoolfor $30,000 intuitionassistance; inturn,they Recipients willbeeligibleto receive upto Scholarship. Generationlishes aNext Hoosiers Education HB 1002,signedinto law inMarch, estab in that career direction. $10 milliononaplanto steer young people teaching profession, andtheyplanto spend state’s andbrightest”“best to enter the Indiana future teachers scholarship for state’s Indiana setsupnew responsibilities. reward teachers whotake roles onextra and establishprograms can school districts that with thisyear’s passageofHB1005,Indiana pathways and andleadershipopportunities, Another ideawas to develop newcareer create additionalscholarshipopportunities. age ofteachers. commission One ideawas to velop strategies that address thestate’s short leaders formed acommission lastyear to de by 30percent. Inresponse, Indianaeducation teacher licenses issuedin Over thepastfive years, thenumberofinitial on anACT orSAT exam. of hisorherhighschoolclassandscore well NONPROFIT ORGANIZATION U.S. POSTAGE PAID legislators want more oftheir CAROL STREAM, IL Stateline PERMIT NO. 1859 Indiana hasfallen

Midwest - - CLIPS April 2016 - The Council of State Governments ity generationity coming from wind:Iowa (firstin U.S. states withthehighestshare ofelectric Administration, thisregion hasfive ofthe10 Iowa. According to theU.S. Energy Information MidwesternSome states are notfarbehind windturbines.installing small-scale ordinancescal that simplifytheprocess for tion zones.” This designation isbasedonlo communities to become “small windinnova producers. Iowa state law alsoallows local available to utilities and independent power tax credits.of production These credits are able energy, mostnotablythrough theuse incentives to promote thegrowth ofrenew more recent years, the state hasemployed adopt arenewable standard. portfolio in But In 1983,Iowa thefirstU.S. became state to cent five withinthenext years. the state hasthe potential to reach 40per threshold. According to Gov. Terry Branstad, — theonlyU.S. state that hasreached this from thisrenewableof itselectricity source Iowa has hityet anothermilestone. The nation’s leaderinwindenergy anduse energy generation milestone in wind Iowa blows by another and cent); the nation, 31.3percent); Midwestern Office ond, 25.5percent); Minnesota

701 E. 22nd Street, Suite 110 isnow gettingmore than30percent North Dakota North Lombard, IL 60148-5095 Phone: 630.925.1922

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www.csgmidwest.org Dakota South (third, 23.9per CHANGE SERVICE REQUESTED (sec ------juana possession. have ofmari types decriminalized certain and ization organization), Nebraska Minnesota, marijuana. According to NORML(apro-legal the 23U.S. states that have legalized medical nois legalized marijuanafor recreational use. Four U.S. states (noneintheMidwest) have with an “influx of Colorado-sourced marijuana.” states alsosaidtheywere now having to deal with federal drug laws.flicts twoThe plaintiff said Colorado’s legalization ofmarijuanacon says. Intheirlawsuit, Nebraska andOklahoma do’s court,” schemeinfederal district Peterson does notbaradditionalchallengesto Colora “The court’s decision[to nothearthecase] reports. complaints withanother, that isallowedaction whenstates have legal without goingthrough alower —an court was to fileddirectly theU.S. Supreme Court joinedNebraskaOklahoma inthelawsuit. It toward vindicating therule oflaw.” is pledgingto “determine steps thebestnext Nebraska boring Colorado’s legalization ofmarijuana, not to hearhisstate’s challengeto neigh In thewake ofaU.S. Supreme decision Court challenge to druglaw hear recent Nebraska choosesnottoCourt Ohio , Michigan are amongthe19U.S. states that Attorney Peterson General Doug and Minnesota SCOTUSblog.com are among Illi ------

and thegovernor would appoint thisboard. by aboard ofdirectors. Legislative leaders of Agriculture and be overseenDepartment Foundation would behousedwithinthestate Under HB4990andSB2903,theFairgrounds donations. create anewfoundation that solicitsprivate grounds, some To better maintain theirstate’s two fair fund state fairgrounds private donorsto help Illinois billwould tap tery proceedstery in admissions in fairs —for example, riverboat somecasino revenueof certain sources to their state states,Some too, have dedicated aportion Park Foundation. federal grants. Wisconsin alsohasaState Fair andcorporate,in-kind services; state and dividual contributions; state appropriations; 1993. That moneyhascome from amixofin has raised more than$115millionsince The Iowa State Fair Foundation Ribbon Blue boring states suchas ing modelalready beingemployed inneigh The Illinoisproposals seekto follow afund both locations. million indeferred maintenance isneededat Morefield, than$180 theotherinDuQuoin. Illinois has two fairgrounds, one in Spring Indiana Illinois Nebraska Iowa and 10percent of lot legislators want to . and Wisconsin ------.