The Current State | Thursday

T H U R S D AY

W ELCOM E T O NOR T H ERN K EN T UCK YGRE AT ER CINCINN AT I Dear Friends: Welcome to Northern Kentucky – Greater Cincinnati and The Council of State Governments 2018 National Conference. Daniel Boone once said, “Heaven must be a Kentucky kind of place.” The commonwealth’s beauty, culture, history and people certainly support Daniel Boone’s conclusion. We hope you enjoy the chance to sample some of what makes this place so special. We are excited to share with you some of the best of Kentucky.

This year, The Council of State Governments celebrates its 85th anniversary and for 50 of those years, Kentucky has been home to the CSG national headquarters. CSG is proud to call Kentucky its home and is pleased to again host its national conference in the Bluegrass state.

During our time together, we will learn a lot, have some fun and make plenty of new friends.

One of CSG’s greatest strengths is its proven ability to bring state officials together and deliver on its mission of championing excellence in state governments to advance the common good.

Your presence here helps us do just that.

While here in Covington, Kentucky, and the Greater Cincinnati area, we will have the opportunity to interact with nationally recognized thought leaders and public policy experts, as well as meet state officials from throughout the nation and provincial leaders from Canada. We will also have the chance to share insights during the countless opportunities provided to learn from each other. Speak up, ask questions, share lessons you’ve learned—this is your conference.

This gathering would not be possible without the generous support of our conference sponsors, CSG Associates and CSG Leadership Circle members. Their investment makes it possible for all of us to reap the benefits of the excellent public policy programming offered. We appreciate their support and involvement.

Thursday, Dec. 6 CSG Registration & Information Desk Open 7 a.m. – 5 p.m. | Madison Lobby

Buffet Breakfast

7 – 8 a.m | Ballroom BC

CSG Leadership Council

8 a.m. – Noon | Meeting Room 8

Stay at Work/Return to Work State Toolkit

We also want to express our gratitude to the Kentucky host state committee. This meeting will be remembered for years to come because of their tireless commitment to its success.

8 a.m. – Noon | Riverview Room, Marriott, Lobby Floor

We hope you will take home from this conference new information and ideas to help you better navigate the complex public policy challenges confronting your state. CSG is proud to help you achieve great things for the citizens you serve and for our nation and world.

CSG Policy Academy: The Intersection of Innovation & Infrastructure

Thank you for joining us in Kentucky. CSG appreciates your support and participation in this conference. We hope you will let us know if there is anything we can do to make your stay more enjoyable.

Happy holidays!

GOV. GARY HERBERT Utah 2018 National President SENATE PRESIDENT ROBERT STIVERS Kentucky 2018 National Chair DAVID ADKINS CEO/Executive Director The Council of State Governments

CSG Policy Academy: Using Science to Inform State Policymaking 8 a.m. – 5 p.m. | Meeting Room 6, 7

8 a.m. – 5 p.m. | Meeting Room 9, 10

Coffee Service

9:30 – 10 a.m. | Meeting Room Lobby & Madison Lobby

Overcoming Social Inequalities with Technology Today 10 – 11 a.m. | Learning Center

Guest and Spouse Activity: Newport Gangster Tour by American Legacy Tours 10:30 a.m. – Noon | Madison Street

Understanding Gene Replacement Therapy 11 a.m. – Noon | Learning Center

Buffet Lunch

Noon – 1:30 p.m. | Ballroom BC

Cybersecurity Preparedness for State Policymakers 1:30 – 2:30 p.m. | Learning Center

U.S. – Canada Relations Best Practices in Regional Cooperation 1:30 – 2:30 p.m. | Ballroom DE

Download the App! Don’t forget to download the CSG 2018 National Conference app to create a personalized meeting agenda, view photos, receive instant meeting updates and share feedback! Download the app from your favorite app store. www.twitter.com/CSGovts

www.facebook.com/CSGovts

CSG Shared State Legislation: Part I 1:30 – 5 p.m. | Meeting Room 1, 2, 3

CONTINUED ON PAGE 3...

Featured Speaker J.D. Vance Friday, Dec. 7 Opening Luncheon | Noon – 2 p.m.

Book Pre-Sale Friday, Dec. 7, 10 a.m. – Noon J.D. Vance is an investor, commentator and author of the #1 New York Times bestseller Hillbilly Elegy: A Memoir of a Family and Culture in Crisis.

Book Signing with J.D. Vance Friday, Dec. 7 J.D. Vance will sign copies of his best-selling book, Hillbilly Elegy: A Memoir of a Family and Culture in Crisis, from 2-2:30 p.m. on Friday after the opening session and luncheon. Books will be available for purchase beginning at 10 a.m. or you may bring your own copy of the book.

Due to time constraints, Vance will not be able to offer personalized messages or photos.

Tonight An Evening at the Newport Aquarium Join your colleagues Thursday at 6:30 p.m. for an evening at Newport’s famed aquarium featuring a performance by Carly Pearce, a CMT award-winning artist and Kentucky native, followed by a fireworks show.

with a strong focus on collaboration, communication and teamwork skills. Politics today are often characterized by polarization and gridlock. Toll Fellows learn how to overcome differences to serve the common good. These dedicated public servants leave the program energized and ready to return to their states and continue to make a difference."

Henry Toll Fellowship Graduation Honors 48 State Leaders For more than 30 years, the Henry Toll Fellowship has selected 48 of the nation’s top officials who represent all three branches of state government for a professional development experience unlike any other. The members of the Class of 2018 hail from 32 states and Guam and represent all three branches of state government. A committee of program alumni reviewed applications and selected the class.

"The CSG Toll Fellows are a remarkable group of state leaders," CSG Executive Director/CEO David Adkins said. "We have designed the fellowship to expand their leadership capacity

The Toll Fellowship, named for CSG founder Henry Wolcott Toll, is a six-day, five-night intellectual boot camp. This year's program was held Aug. 24-28 in Lexington, Kentucky.

Join us in celebrating our 2018 class at the Toll Fellowship graduation and luncheon, Saturday, Dec. 8 at noon. The keynote speaker for this event is NASA astronaut-scientist Story Musgrave, a veteran of six space flights. He completed astronaut academic training and then worked on the design and development of the Skylab Program. He was the backup science-pilot for the first Skylab mission, and was a CAPCOM for the second and third Skylab missions. Musgrave participated in the design and development of all Space Shuttle extravehicular activity equipment, including spacesuits, life support systems, airlocks and manned maneuvering units.

Thursday, Dec. 6 (Cont.)

Coffee & Soda Service

2 – 2:30 p.m. | Meeting Room Lobby & Madison Lobby

Transforming Tobacco to Harness Innovation for Public Good and Economic Growth 2:30 – 3:30 p.m. | Learning Center

U.S. Canada Relations Looking Ahead: New Opportunities to Strengthen Relations 2:45 – 4 p.m. | Ballroom DE

The Best Policy Tool for Sustainability – Building Energy Codes 3:30 – 4:30 p.m. | Learning Center

U.S. Canada Relations Keynote Discussion with Ambassador Craft 4:15 – 5 p.m. | Ballroom DE

Canada Reception

5 – 6 p.m. | Meeting Room 4, 5

Japan Local Government Center Reception 5 – 6 p.m. | Meeting Room 8

An Evening at the Newport Aquarium Special Guest: Country music singer Carly Pearce 6:30 p.m. | Madison Street

You’re Invited

MainStrasse Holiday Village Friday, Dec. 7 | 6 p.m.

Join us in this 19th century German village for a holiday-themed soiree featuring a German band and a dinner selection from six local restaurants, including a whole hog pig roast and seafood bar.

Featured Speaker Story Musgrave Saturday, Dec. 8 Toll Fellowship graduation and luncheon | Noon Story Musgrave is a NASA astronaut-scientist and a veteran of six space flights.

He completed astronaut academic training and then worked on the design and development of the Skylab Program.

Reasons Why Electric Vehicles are the Future of Transportation

The EV market is on the rise, both globally and in the United States.

From a meager 6 EV models available in 2010, consumers can now choose between 54 models

2017

Increase 2018 Over 2016 Forecast

60

Norway

39.2%

35.2%

52.0%

50

Sweden

6.3%

85.3%

9.0%

China

2.4%

71.4%

3.6%

UK

1.9%

35.7%

2.5%

United States

1.2%

31.1%

1.8%

Worldwide

1.3%

Plug-in Hybrids Battery Electric Vehicles

40 30 20 10

61.5%

2.0%

Plug-in electric vehicles have much lower fuel costs on average than conventional gasoline vehicles.

U.S. average cost to fuel an electric vehicle

What is eGallon?

Fuel Cell Electric Vehicles

It is the cost of fueling a vehicle with

electricity compared to a similar vehicle that runs on gasoline.

0

2010

2011

2012

2013

2014

2015

2016

2017

States are charging ahead toward a clean transportation future.

State Elections Officials Say They’re Ready to Deal with Cyber Threats State elections officials around the country expressed confidence that they were ready to protect the November 2018 vote from potential cyberthreats and, if necessary, deploy new tools and communications protocols put in place since the 2016 election, which saw 21 states targeted by Russian hackers.

“We feel confident that we’re in good shape,” Vermont Secretary of State Jim Condos said.

“But I will also say that cybersecurity … is like the race without a finish line. It’s a never-ending proposition.”

Condos was one of five dozen state and local elections officials, state legislators, executive branch staff and state technology directors from eight states who talked with CSG between early August and mid-October as part of an election cybersecurity initiative with The Democracy Fund, a Washington, D.C.-based, bipartisan foundation with the aim of improving the democratic process in the United States.

Condos believes it’s important for states to not only be ever-vigilant but adaptive as well.

the secretary of state’s office to act as intermediary with the federal agencies.

“When a bad actor tried to get in yesterday and couldn’t, he’s going to try a different way today and if he can’t get in today, he’s going to try a different way tomorrow,” he said. “We have to be proactive and focus on defending our systems.”

Washington state is also working toward a goal of getting intrusion detection sensors, known as Albert sensors, installed on all 39 county systems, Wyman said. Reuters reported this summer that 36 states had installed the $5,000 sensors that make use of open source software at the elections infrastructure level. Overall, Reuters reported, 74 sensors have been installed in 38 local jurisdictions around the country. Only 14 of the sensors were installed nationwide prior to the 2016 election.

Across the country in Washington state, there is cautious optimism as well.

Washington Secretary of State Kim Wyman said the county auditors who administer elections in Washington are well-prepared thanks in part to months of tabletop exercises and training with the Department of Homeland Security and the National Guard. Her team also has worked to get nearly every county in the state registered with the Elections Infrastructure Information Sharing & Analysis Center, which allows them to access threat notifications, vulnerability assessments and incident response services without requiring

CSG will release the CSG Election Cybersecurity Initiative Guide for state and local officials at the CSG Election Cybersecurity Communications Mapping Initiative session, Dec. 7 at 2:30 p.m.

Sing Me A Story: The Night Before Christmas Presented by the Cincinnati Boychoir Saturday, Dec. 8 Aronoff Center Reception to follow at the Northern Kentucky Convention Center, Event Center II, 1st Floor

The number of transactions conducted with credit and debit cards has grown steadily in the United States over the last decade.

Electronic transactions conducted with credit cards and debit cards increased from 27 billion in 2001 to 105 billion in 2016, an annual increase of about 19 percent.

CSG Report Explores Electronic Payment Trends in States

SETTING UP STATES TO PROFIT FROM MARIJUANA LEGALIZATION

This trend has caused U.S. governments to encourage their agencies to use electronic payment methods even as the agencies continue to accommodate cash and check payments. During the CSG 2018 National Conference in Northern Kentucky – Greater Cincinnati Dec. 6-8, CSG will release a report titled Cash-less State Governments: Electronic Collections & Benefit Disbursements.

The purpose of the study was to determine the current volume of electronic collections of state taxes and fees as well as the volume of electronic disbursements of tax returns and welfare benefits. In addition, the study analyzed state policies and procedures to facilitate the benefits of cash-less options and adequately manage the transaction costs associated with them.

According to the report, “Such information is useful to state policymakers who may be planning changes to their states’ policies regarding cash-less state collections and disbursements, which ultimately influence the welfare of taxpayers—both citizens and businesses.”

The Automated Clearing House, or ACH, and credit cards are the most commonly accepted forms of payment in states for both individual income taxes and business-related taxes while cash and paper checks are the dominate payment options offered to taxpayers and businesses. The study also found that the ACH has been used more frequently than credit cards for major state taxes, but credit cards are used for fee payments.

Plans states are considering to improve cashless payment systems include expanding the use of the ACH, credit cards and debit card payments as well as adopting new payment channels such as PayPal. In addition, states are looking at improving fraud prevention and security, increasing financial inclusion and technology accessibility and initiating or expanding the use of third-party service providers.

CSG 2018 National Conference attendees will have an opportunity to review and discuss the report during the Fiscal & Economic Development Public Policy Committee session, titled State Impacts of the Tax Cuts and Jobs Act of 2017, from 10 – 11:30 a.m. Friday, Dec. 7. The authors of the report will be on hand to give a short presentation about the report.

The midterm elections moved more states into the legalized marijuana category. Voters in Michigan approved a ballot measure to make marijuana legal and to regulate businesses involved in selling it. That vote brings to 10 the number of states with legalized recreational marijuana.

New Frontier Data recently completed a report on jobs and taxes that would be generated from full federal legalization of marijuana. Their analysis projected that payroll taxes, business taxes and a 15 percent federal sales tax would generate $108 billion over a seven-year period.

Medical marijuana laws exist in 33 states, with Missouri and Utah added after voter referenda were approved in the November elections.

“By bringing the cannabis industry into the light, it brings jobs that have typically been under the table into the light,” he said. Whitney said payroll taxes really add up.

“This election proves that U.S. voters are ready and eager for comprehensive cannabis policy reform at the state and federal level,” said Aaron Smith, executive director of the National Cannabis Industry Association, in a press release. The association advocates that Congress allow states to determine their own cannabis policies.

“States are learning from other states,” Beau Whitney, an economist with New Frontier Data told CSG, referring to how states have regulated marijuana and how states have used taxes to generate revenue for their general funds.

Whitney said states can expect to generate revenue from legalized marijuana. In 2016, Oregon collected $200 million, he said.

“Generally, regulators set business fees to cover the costs of state regulation; sales taxes go into state coffers,” he said.

An additional economic impact of legalization would be that law enforcement could refocus its priorities utilizing savings from less incarceration and less court costs.

Whitney will be a speaker at the CSG 2018 National Conference in Northern Kentucky-Greater Cincinnati on Friday, Dec. 7 at 8 a.m. during the Growing Green: Marijuana Policy Impacts on State Budgets session, which will provide an overview of the fiscal landscape for states including economic development through job creation and tax revenues as well as the impacts on state budgets.

Doug Friednash, former chief of staff to Colorado Gov. John Hickenlooper, will join Whitney and share how his state set up the regulatory and tax frameworks for marijuana legalization and the challenges Colorado faced with rollout and implementation.

S at u r d ay, D e c . 8 8-9:30a.m.

L o c a t e d

i n

B a l l r o o m

D E

CSG Campaign Against Hunger Service Project According to Feeding America, 1 in 6 people are struggling with hunger in Kentucky. CSG will continue our tradition of hosting a Campaign Against Hunger event at our annual conference. Please join us as we pack meals to benefit people struggling with hunger in our host state of Kentucky.

CSG to Launch Workforce Development Toolkit CSG will release the Stay-at-Work/Return-to-Work Toolkit at the 2018 National Conference during a session from 8 a.m. to noon Thursday, Dec. 6. The U.S. Department of Labor and the Office of Disability Employment Policy’s State Exchange on Employment and Disability collaborated on the toolkit. It was designed to provide states with policy options, best practices and implementation strategies to aid efforts in increasing employment retention and labor force participation of employees who acquire, or are at risk of developing, work disabilities.

Employees exiting the workforce because of injury or illness can result in high costs for all stakeholders. In addition to losing a stable income, employees can face ad-

ditional health concerns such as depression from the adjustment and a reduced quality of life. Employers lose productivity during an employee vacancy and acquire potential hiring and training costs. States lose tax revenue, personal spending in the economy, and gain the cost of state disability benefits. The SAT/RTW Toolkit offers states numerous strategies to mitigate these costs.

In addition, the toolkit provides strategies to help injured or ill workers receive timely and effective supports and services that allow them to remain in the workforce and avoid long-term unemployment.

It addresses return-to-work and partial return-to-work programs, disability benefit programs, and employer subsidies, incen-

tives and grants. The toolkit also covers a variety of issues that surround the baseline problem, including transportation, technology, training stakeholders, and communication with health care providers. States with innovative and effective policies and programs in the area are highlighted in the toolkit as examples.

“States need to realize that this is a return-on-investment,” said Tennessee state Sen. Becky Massey, who served on the CSG Stay-at-Work/Return-to-Work Leadership Team. “We are not simply accommodating people with disabilities, but we are tapping into an underutilized resource.”

Horsing Around the Bluegrass

by Shawntaye Hopkins This year, CSG turns its attention to the home of its national headquarters: Kentucky.

The CSG 2018 National Conference in Northern Kentucky—Greater Cincinnati will convene policymakers to discuss top issues affecting states. The national conference is an annual opportunity for friends across all branches of state governments to socialize and share ideas. Welcome y’all.

ORIGINALLY READING “FLORENCE MALL”

95% of the world’s bourbon is crafted in Kentucky.

a water tower built in 1974 on I-75 in Northern Kentucky violated advertising restrictions.

THE MAYOR DECIDED TO REPLACE THE “M” WITH A “Y.”

The 1st Kentucky Derby W A S H E L D M AY 1 7 , 1 8 7 5

A 3-year-old chestnut colt N A M E D Aristides W O N .