Policy Analysis | December 2019

Motor Fuel Evaporation Deductions

Roger Moore

During the handling, transportation and storage of motor fuel, evaporation loss commonly occurs. Movement from production operations to refineries, followed by fuel terminals and, lastly, service stations and local storage plants, often results in a loss of fuel caused by changes in temperature and modes of transportation.¹ As a result, the amount of motor fuel delivered for consumption often is less than the original amount produced and refined.

Wholesalers are obligated to pay taxes on fuel based on the amount purchased at the time of receipt, before it is delivered and sold to retail outlets. Due to evaporation, the original taxable amount of fuel may be greater than the amount that ultimately is sold to retailers. Although wholesalers collect taxes from their buyers, they may not fully recoup the taxes they paid at the time of the original purchase.

To account for this discrepancy, many states have enacted deductions for dealers, suppliers and/or distributors of motor fuel. In the SLC region, eight of the 15 states currently have deductions to offset losses from fuel evaporation, ranging from 0.004 percent up to 3 percent of the original taxable amount. A review of state codes identified fuel evaporation deductions in Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Tennessee and West Virginia. Other states have fuel-related deductions, but these are not specifically associated with evaporation loss.

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Policy Analysis | November 2019

Federal Analysis: Rural Health Agenda

Nick Bowman

Rural hospitals have struggled to remain solvent in recent years. Since January 2010, 81 rural hospitals have closed in the SLC region. State and federal policy makers are working to mitigate this trend and promote the work of rural hospitals.^* At the federal level, the recently introduced Rural Health Agenda offers potential assistance for rural hospitals and residents.

On July 31, 2019, U.S. Senator Marsha Blackburn (TN) introduced the Rural Health Agenda in the Senate to support the provision of rural healthcare. The agenda includes the Rural America Health Corps Act, Telehealth Across State Lines Act of 2019 and Rural Health Innovation Act of 2019. The three bills were each read twice and referred to the Senate’s Health, Education, Labor and Pensions Committee.

On October 29, 2019, U.S. Representative Phil Roe (TN) introduced companion bills for the Rural America Health Corps Act and Telehealth Across State Lines Act of 2019 in the House of Representatives. Both bills were referred to the House Energy and Commerce Committee; the latter was also referred to the Ways and Means Committee. That same day, U.S. Representative David Kustoff (TN) introduced a companion bill for the Rural Health Innovation Act of 2019, which was referred to the Energy and Commerce Committee.

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SLC Regional Resource | November 2019

Rural Hospitals: Here Today, Gone Tomorrow

Nick Bowman

With decreasing rural populations and changing federal regulations, many rural hospitals have struggled to maintain financial viability in recent years. In 2017, 6,210 total hospitals operated in the United States; 2,250, of these are rural hospitals. Nationally, 113 rural hospitals have closed since January 2010. Furthermore, the rate of rural hospital closures from 2013 to 2017 was twice as high as the rate of the previous five years. In January 2010, SLC member states had approximately 831 rural hospitals. Since then, 81 rural hospitals (9.7 percent) in the South have closed.

This SLC Regional Resource examines the unique circumstances facing rural hospitals and communities today, including healthcare regulations and recent federal actions aimed at directing greater financial support toward rural healthcare providers, followed by a review of legislation adopted in the 15 SLC member states addressing rural health, rural hospitals and their challenges.

Policy Analysis | September 2019

The Equal Rights Amendment to the U.S. Constitution: A Historic Perspective

Nick Bowman

The Equal Rights Amendment (ERA), a proposed amendment to the U.S. Constitution, would guarantee equal rights to all Americans regardless of sex. The amendment was written by Alice Paul of New Jersey and Crystal Eastman of Massachusetts and introduced at the Woman’s Rights Convention in 1923, two years after ratification of the 19th amendment, providing women the right to vote. The ERA passed the U.S. House of Representatives on October 12, 1971, and the U.S. Senate on March 22, 1972.

Article V of the U.S. Constitution states that “the Congress, whenever two thirds of both Houses shall deem it necessary, shall propose Amendments to this Constitution, or, on the Application of the Legislatures of two thirds of the several States, shall call a Convention for proposing Amendments, which, in either Case, shall be valid to all Intents and Purposes, as Part of this Constitution, when ratified by the Legislatures of three fourths of the several States, or by Conventions in three fourths thereof.” With 50 states in the Union, the Constitution is amended when 38 states ratify an amendment.

The text of the ERA reads:
“Section 1. Equality of rights under the law shall not be denied or abridged by the United States or by any State on account of sex.
Section 2. The Congress shall have the power to enforce, by appropriate legislation, the provisions of this article.
Section 3. This amendment shall take effect two years after the date of ratification.”

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Policy Analysis | September 2019

Media Access at State Capitols

Nick Bowman

State legislatures may provide credentials to members of the media to report on legislative developments. These credentials may grant special access to state capitols, such as access outside of traditional business hours or to dedicated areas for the media. Additionally, some legislatures require media organizations to pay rent for the use of dedicated space. The information presented is a summary of a survey conducted of Southern legislative service agency directors to determine how different states and chambers address media access.

Alabama

Members of the media have credentials or ID cards permitting them to bypass security and have full-time access to the State House. There is a press room in the back of each chamber and a separate press room and private offices on the first floor of the State House. A written license agreement with the organizations that use the private offices is required.

Arkansas

Credentialed media members are permitted to bypass security and have full-time access to the Capitol or similar state building. Members of the media also have rent-free offices on the first floor near the entrance to the Capitol.

Georgia

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SLC Regional Resource | September 2019

Scoot Over: The Growth of Micromobility in the South

Roger Moore

The emergence of shared electric scooters is the latest development in the broader micromobility movement, defined by the use of light, often single-occupant modes of transportation for short distances. Along with electric scooters, station-based and dockless pedal and electric bicycles are the most commonly used micromobility vehicles, accounting for more than 80 million trips in 2018.

In the South, the introduction of shared electric scooters has been swift. With growing populations and favorable climates across much of the region, urban and suburban areas in most SLC states are experiencing both the benefits of electric scooters for expanded mobility and the challenges they present for transportation and public safety. In response, several SLC states enacted legislation in 2019 to address the concerns that shared electric scooters have engendered, such as how and where they should operate, who is eligible to ride them and what precautions need to be taken to maximize safety.

This SLC Regional Resource provides an overview of micromobility, specifically shared electric scooters, and outlines the various actions Southern states have taken to create a coherent regulatory framework to manage their growth. While much of the authority to regulate electric scooters is delegated to local officials, state governments have an important role to play to ensure this emerging mode of transportation is both safe and accessible.

Policy Analysis | August 2019

Approved 1115 Medicaid Demonstrations in the South

Roger Moore

Under Section 1115 of the Social Security Act, the U.S. Department of Health and Human Services has the authority to waive specific provisions of major health and welfare programs, including Medicaid and the Children’s Health Insurance Program (CHIP). Section 1115 waivers give states the flexibility to implement experimental or pilot projects, frequently referred to as “demonstrations,” to test new approaches to Medicaid and CHIP that differ from federal rules. Approved demonstrations must be budget-neutral, meaning any changes to services or coverage cannot exceed existing costs. Additionally, all approved demonstrations are subject to specific rules regarding transparency and evaluation. Public notice and comment periods at both the state and federal levels are required before Section 1115 waivers are approved.¹

In the SLC region, 10 states have approved Section 1115 waivers as of August 2019, for a total of 13 waivers (two each in Arkansas, Florida and Mississippi). Approved Southern state demonstrations focus on five key areas of Medicaid/CHIP services and coverage:

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Comparative Data Reports | August 2019

Adult Correctional Systems, Education, Medicaid and Transportation

Comparative Data Reports (CDRs) are prepared annually by select SLC states’ fiscal research departments. These reports track revenue sources, appropriations levels, performance measures, and a multitude of other metrics in Southern states. A useful tool for legislators and legislative staff alike, CDRs are available for adult correctional systems, education, Medicaid, and transportation.

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Policy Analysis | August 2019

Operation of State Rest Areas and Welcome Centers

Nick Bowman

Rest areas, or safety rest areas as they were known at the time, emerged with the creation of the interstate highway system in the 1950s. With picnic areas and restrooms available at no cost to travelers, rest areas arose as a way to take a break from interstate travel. In the decades since the first rest areas were constructed, fast food restaurants and convenience stores have appeared close to interstates and highways, providing motorists with additional options. In recent years, several states, including Florida, Michigan, Ohio and South Dakota, have closed rest areas to minimize maintenance costs. Other states, such as Missouri, have privatized the operation of rest areas and welcome centers.

The table lists the agency or department responsible for operating and maintaining rest areas and welcome centers in the 15 Southern states and provides a hyperlink to that agency’s website. In eight states, two agencies are responsible for operating rest areas and welcome centers. In the remaining seven states, one agency is responsible for operating rest areas and welcome centers.

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Policy Analysis | May 2019

Vaping and Electronic Cigarette Legislation (2019)

Roger Moore

Electronic cigarette usage has surged in recent years, with increased rates among youth and young adults posing a particularly worrisome challenge for public health officials. According to the Centers for Disease Control and Prevention (CDC), approximately 4.9 million middle and high school students were users of tobacco products in 2018, an increase of 1.3 million from 2017. The increase – driven mostly by the growth of electronic cigarettes – impedes successful efforts by states in recent years to reduce youth tobacco usage. More than a quarter of high school students and about 7 percent of middle school students reported using tobacco products in 2018, with electronic cigarettes the most common among both demographics. Electronic cigarettes have benefits for adults using them as complete substitutes for regular cigarettes; however, the CDC and U.S. Surgeon General both warn they should not be used by youth, young adults, pregnant women and adults who do not smoke. U.S. health agencies acknowledge that further studies are needed to understand the long-term health effects of electronic cigarettes.¹

In an effort to address concerns surrounding the rising popularity of vaping and electronic cigarette products among youth and young adults, many states across the South introduced and, in several cases, enacted related legislation in 2019. The legislation generally focuses on three areas:

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Policy Analysis | April 2019

School Counselor Legislation in the South

Cody Allen

Along with the more routine duties of academic and career development, school counselors also have a responsibility to assist students with personal and social development. The student-to-school counselor ratio across the South and the time allotment school counselors must spend providing direct services to students recently has drawn greater attention, as well as the need to clarify these direct services.

The American School Counselor Association (ASCA) narrows in on two best practices for states to implement regarding their school counselor programs. The first is a recommended student-to-school counselor ratio of 250-to-1. While the second is a recommendation that school counselors allocate 80 percent of their work-time to providing direct services to students and only 20 percent to non-related or administrative tasks.¹

Student-to-School Counselor Ratios

In 2013 and 2017, respectively, North Carolina and Tennessee were the first states to require an 80-20 allotment for their school counselors, although neither state has yet to achieve the recommended 250‑to-1 ratio recommended by the ASCA.²

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SLC Regional Resource | April 2019

Weathering the Storm: Assessing the Agricultural Impact of Hurricane Michael

Anne Roberts Brody

Note: Since the release of this report on April 15, 2019, Hurricane Michael was retroactively upgraded to a Category 5 storm.

Hurricane Michael roared onto the Florida Panhandle on October 10, 2018. A Category 4 storm with sustained winds of 155 miles per hour — just shy of the 157 miles per hour necessary to be classified a Category 5 storm — it was the third strongest hurricane to strike the United States mainland. As Michael moved northeast across Alabama and Georgia, the hurricane’s fierce winds, towering storm surge and punishing rain caused billions of dollars in damage to homes, businesses and infrastructure in the Southern region.

For farmers in Florida, Alabama and Georgia, the timing of the storm could not have been worse. Just as harvest season for many vegetable and row crops was beginning, like a plague of locusts, Michael devoured nearly every farm in its path. This SLC Regional Resource, current as of April 15, 2019, reviews the agricultural impact of Hurricane Michael on Florida, Alabama and Georgia. Across the three states, cotton and timber were hardest hit, but damage to other agricultural products and infrastructure was equally devastating.

SLC Regional Resource | April 2019

Surprise Medical Billing in the South: A Balancing Act

Roger Moore

Balance billing is a common practice that occurs when a medically insured patient receives treatment from an out-of-network healthcare provider, either intentionally or inadvertently, and subsequently is billed the difference between the insurance company’s reimbursement rate and the amount charged by the provider. Not bound by contractual, in-network rate agreements with insurers, out-of-network providers are permitted to bill patients the remaining balance for services rendered after deductibles, copayments and coinsurance obligations have been paid. In most cases, the amount charged by a provider and the insurer’s reimbursement rate are significantly different, resulting in a confusing and/or financially distressful medical bill that must be settled or resolved by the patient.

As healthcare costs in the United States continue to climb, often forcing consumers to pay higher premiums and deductibles for care, balance billing has become a controversial and confounding policy issue involving insurers, healthcare providers, consumer advocate organizations and regulators at both the state and federal levels. Balance billing most frequently occurs after patients unintentionally receive care outside their insurance network, either during emergencies or other situations when options to choose providers are restricted.

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Policy Analysis | April 2019

Federal Legislation on Rural Hospitals

Nick Bowman

In 2016, approximately 62 million Americans, nearly one-fifth of the total population, lived in rural areas, according to the U.S. Census Bureau. In 2017, there were 1,875 rural community hospitals and 1,971 rural hospitals in the United States, ¹ per the American Hospital Association (AHA). With decreasing patient volumes and increasing regulations, many rural hospitals have struggled to maintain financial viability in recent years.

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Policy Analysis | March 2019

Disposal of Coal Combustion Residuals

Anne Roberts Brody

The Disposal of Coal Combustion Residuals (CCRs) from Electric Utilities final rule was signed on December 19, 2014, and published in the Federal Register on April 17, 2015. The rule finalized federal regulations to provide a comprehensive set of requirements for the safe disposal of CCRs, commonly known as coal ash, from coal-fired power plants.

On July 26, 2016, the administrator of the U.S. Environmental Protection Agency (EPA) signed a direct final rule and a companion proposal to extend the compliance deadlines for certain inactive CCR surface impoundments. These revisions were in response to a partial vacatur ordered by the United States Court of Appeals for the District of Columbia Circuit on June 14, 2016. The direct final rule was published in the Federal Register on August 5, 2016, and became effective October 4, 2016.

Since 2016, there have been 52 legislative measures addressing CCRs in seven Southern states. The majority came from Virginia, with 17 pieces of legislation introduced. Meanwhile, Georgia introduced 11 pieces of legislation, North Carolina 10 and Missouri eight. Alabama, South Carolina and Texas also considered legislation related to CCRs.

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SLC Regional Resource | March 2019

Sports Betting in the South

Cody Allen

On May 14, 2018, the United States Supreme Court — via a 6-3 decision in Murphy, Governor of New Jersey v. National Collegiate Athletic Association (Murphy v. NCAA) — overturned the 1992 Professional and Amateur Sports Protection Act (PASPA), a longstanding federal prohibition on professional and amateur single-game sports wagering. The Murphy v. NCAA case was closely followed by state governments across the country, as ending the prohibition could open up an additional source of revenue. On September 5, 2017, West Virginia — joined by 20 other states — filed an amici curiae brief in support of New Jersey. Several signatories from SLC member states joined the brief, including the attorneys general of Florida, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee and Texas, as well as the governor of Kentucky.

This SLC Regional Resource, current as of January 31, 2019, examines the status of active sports gambling laws in Mississippi and West Virginia, the two SLC states that currently authorize it. As additional data is gathered on the revenue gained from taxing sports wagering, it is anticipated many states will act during the 2019 and 2020 legislative sessions to bring this form of gaming to their states — especially those with a lottery or casino gaming infrastructure already in place.

Policy Analysis | January 2019

Medical Marijuana Laws in Southern States

Anne Roberts Brody

Of the 15 states comprising the Southern Legislative Conference, six (Arkansas, Florida, Louisiana, Missouri, Oklahoma and West Virginia) have laws establishing comprehensive medical marijuana programs.* Of those, only Florida’s medical marijuana program is fully operational. Programs in Arkansas, Louisiana, Missouri, Oklahoma and West Virginia are still in the developmental phases.

Within the public policy community, a consensus has emerged on what constitutes a comprehensive medical marijuana program. Such programs are characterized by four key criteria:

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Other | January 2019

Issues to Watch - 2019

Anne Roberts Brody, Cody Allen and Roger Moore

As the 2019 legislative cycle begins, legislators across the South are preparing and pre-filing legislation to address emerging and relevant policy issues in their states. With its regional focus, the Southern Legislative Conference (SLC) is uniquely positioned to research and identify current and emerging policy issues and trends. This report was prepared by SLC policy analysts Anne Roberts Brody, Cody Allen and Roger Moore as a snapshot of issues and trends that are anticipated to emerge during the 2019 legislative term.

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Policy Analysis | October 2018

CDL Waivers for the Agriculture Industry

Anne Roberts Brody

Introduction
Transportation facilitates agriculture development by linking farmers, ranchers, manufacturers and service industries to grain elevators, processors, feedlots, markets, ports, rail, and barge facilities. Because agriculture requires large amounts of fertilizers and chemicals, it needs motor carriers that can safely haul hazardous materials. However, obtaining and maintaining a commercial drivers license can be costly and time consuming.

The inherently seasonal nature of agriculture requires drivers to be available to transport freshly harvested crops, or to provide fuel to implements of husbandry in a timely fashion. Delays caused by driver or vehicle shortages can be costly, resulting in spoiled crops and/or reduced returns. Likewise, the seasonal nature of this work means that farmers, farm workers and certain farm-related service industries need the ability to transport these goods during limited periods of time and for shorter distances than drivers for other industries. Recognizing this, the Moving Ahead for Progress in the 21st Century (MAP-21) Act of 2012 authorized a broad exemption from many federal regulations for vehicles that are classified as covered farm vehicles and granted states broad authority to waive certain Commercial Drivers License (CDL) requirements for farmers and employees of designated farm-related service industries. These exemptions offer the flexibility that is vital to the agriculture industry.

Federally Authorized CDL Waivers

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SLC Issue Brief | October 2018

The Growth of Synthetic Opioids in the South

Roger Moore

Download the full report (PDF)

The drug epidemic, driven in large part by the ongoing opioid crisis, continues to ravage tens of thousands of families and communities across the United States. The latest provisional data from the Centers for Disease Control and Prevention, released in September 2018, estimated that more than 71,500 drug overdose deaths occurred nationally between January 2017–January 2018, an increase of 6.6 percent during the same period the previous year, and 31.4 percent higher compared to January 2015– January 2016.1 In the Southern region, drug overdoses were responsible for more than 24,000 deaths in 2017, approximately one-third of the national total.

This SLC Issue Brief reviews the rise of dangerous synthetic opioids, primarily fentanyl, and their evolving role within the broader opioid crisis afflicting the United States. According to the U.S. Drug Enforcement Agency (DEA), the popularity of fentanyl and related synthetic opioids will remain unchallenged for the next several years, making it crucial for state and local leaders to understand the extent of the crisis and identify potential solutions for its mitigation.

SLC Special Series Report | October 2018

Blown Away: Wind Energy in the Southern States (Part III)

Anne Roberts Brody

Download the full report (PDF)

Wind energy production in the United States continues to grow, heralding expanded transmission capacity, lower energy prices and job growth in several sectors. This SLC Special Series exploring the myriad impacts of wind energy expansion in SLC states has examined the benefits of wind energy in the region and provided case studies from three SLC states. However, a further understanding of the full impacts of this growing industry also necessitates a discussion of its challenges. To that end, this SLC Special Series Report, the third and final installment, assesses the industry’s obstacles, particularly as they relate to military operations, impacts to avian populations and cultural perceptions.

Policy Analysis | September 2018

Poverty Statistics for Southern States

Roger Moore

Poverty is a complex and multifaceted issue, the result of socioeconomic factors often connected to history, geography and race. Studies consistently show that poverty limits access to education, nutritious foods, professional opportunities and safe, prosperous neighborhoods, all of which are critical for sustaining long and healthy livelihoods. For state and local governments, poverty can exacerbate crime, necessitate increased spending on healthcare and social safety nets, and adversely affect economic growth for decades.
 
According to statistics released by the U.S. Census Bureau in September 2018,* 42.5 million people lived in poverty in 2017, equivalent to 13.4 percent of the entire population that year. Among all groups, those identifying as American Indian and Alaska Native experienced the highest poverty rates at 25.4 percent, followed by individuals who identified as black or African American at 23.0 percent and Hispanic or Latino at 19.4 percent. Meanwhile, individuals who identified as white or Asian had the lowest poverty rates in 2017, both at 11.1 percent.

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Policy Analysis | August 2018

Suicide Rates in the South

Roger Moore

In June 2018, the Centers for Disease Control and Prevention (CDC) released a report documenting the high – and growing – number of suicides across the United States. In 2016, the last year for which the CDC has comprehensive data, 45,000 people died by suicide, an increase of 25.4 percent over 1999 levels. Nevada, where deaths by suicide were down 1 percent between 1999-2016, was the only state that did not experience an increase during this period.

Seven of the 15 states in the South, including Arkansas, Kentucky, Louisiana, Missouri, Oklahoma, South Carolina and West Virginia, experienced increases in suicide rates between 1999-2016 that were higher than the national average of 25.4 percent. The remaining seven states in the region were below the average, from a high of 24.2 percent in Tennessee, to a low of 10.6 percent in Florida.

Among Southern states, Oklahoma had the highest number of deaths by suicide per capita in 2016, with 21 per 100,000, followed by West Virginia, Missouri and Arkansas, all of which were among the top 15 nationally in this category. Meanwhile, North Carolina, Mississippi and Texas had the fewest number of suicides per 100,000 in the South, with rates of 13.0, 12.7 and 12.6, respectively. The national average was 13.5 deaths by suicide per 100,000, a number surpassed by 10 states in the SLC region.

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Policy Analysis | August 2018

Apprenticeships in the South

Roger Moore

Due to a lack of training and education among prospective employees, many businesses often have difficulty finding enough skilled workers to remain competitive in the global economy. This is particularly the case for positions that require moderate to high levels of technical knowledge, which are critical for sustained success in today’s job market.

Successful apprenticeship programs, which have proven valuable for both businesses and students, can help state and local leaders address the skills gap that exists in many industries. For businesses, apprenticeships can nurture student interest in careers related to their industry, potentially increasing the number of applicants in the future and improving employee retention and productivity. They also facilitate robust partnerships with schools, thereby ensuring that education standards include the skills and training necessary to succeed in growing industries. For students, apprenticeships offer the opportunity to apply content learned in the classroom to the workplace, allowing them to explore career options by gaining critical work experience. Apprentices also can interact with mentors who can assist them later when they are seeking career opportunities.

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Comparative Data Reports | July 2018

Adult Correctional Systems, Education, Medicaid and Transportation

Comparative Data Reports (CDRs) are prepared annually by select SLC states’ fiscal research departments. These reports track revenue sources, appropriations levels, performance measures, and a multitude of other metrics in Southern states. A useful tool for legislators and legislative staff alike, CDRs are available for adult correctional systems, education, Medicaid, and transportation.

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