The Tap: Wednesday, January 4, 2017
The Tap covered election news, public policy, and other noteworthy events from February 2016 to February 2022.
Review of the day
The excerpts below were compiled from issue #47 of The Tap, which was published on January 7, 2017. READ THE FULL VERSION HERE.
Federal
You’re Hired
- Trump announced that he would nominate lawyer Jay Clayton to chair the Securities and Exchange Commission (SEC). The SEC’s primary duty is to protect investors in securities—intangible assets like stocks or bonds—by requiring public companies to disclose financial information and enforcing these requirements through actions against those who violate them. The commission consists of five presidentially appointed commissioners, including one chair. In his statement announcing the nomination, Trump said, “Jay Clayton is a highly talented expert on many aspects of financial and regulatory law, and he will ensure our financial institutions can thrive and create jobs while playing by the rules at the same time. … We need to undo many regulations which have stifled investment in American businesses, and restore oversight of the financial industry in a way that does not harm American workers.” While Clayton’s stances on regulatory issues are unclear, he has worked on the initial public offerings of a number of large companies, including Alibaba, Moelis & Company, and Ally Financial. He was also the representative for Italian oil company Eni in its bribery settlement with the FEC in 2010.
Much of the SEC's work centers on implementing and enforcing securities-related provisions in the Dodd-Frank Act, a major financial regulatory law passed in 2010. As a candidate, Trump criticized the act, saying, “Under Dodd-Frank, the regulators are running the banks.” After winning the presidential election, he promised to repeal the act.
Fracking Appeal Delayed
- The U.S. Court of Appeals for the Tenth Circuit delayed oral arguments for an appeal brought by the Obama administration to reinstate fracking regulations on federal land. A three-judge panel will hear two one-hour oral arguments on March 20, 2016, from litigants in the case. As a result, attorneys selected by President-elect Donald Trump (R) will lead the federal government’s appeal. The regulations, issued by the U.S. Bureau of Land Management in 2015, would affect drilling well casing, waste fluid storage, and the public disclosure of fracking fluids used on federal and American Indian land. In June 2016, Judge Scott Skavdahl of the U.S. District Court for Wyoming struck down the regulations, arguing that they bypassed congressional authority and overlapped with and interfered with each state's own interest in regulating fracking. According to The Hill, the incoming Trump administration could instruct its attorneys not to appeal the case, in which other supporters of the regulations—such as environmental groups—could defend the regulations in court. In addition, the Trump administration could work to repeal the regulations through the administrative process. For more information on the incoming Trump administration’s take on energy policy, click here.
Swift Plans for the Stream Rule
- U.S. House Majority Leader Kevin McCarthy (R-Calif.) said the Republican-led House would prioritize a repeal of the Interior Department’s stream rule for coal companies and federal methane regulations on oil and natural gas drilling. In a speech on the House floor, McCarthy said, “While we haven’t yet determined what needs to be repealed first, I expect to start with swift action on at least on the Stream Protection Rule and methane emissions standards, both of which are limits to our energy production.” The stream rule, issued in December 2016, would impose new standards for coal mining companies that restore streams after surface mining activities. The methane regulations, issued in May 2016, would require reductions in methane, the main component of natural gas, from oil and natural gas drilling.
Immigration: Walls & Executive Orders
- Reuters reported that the Trump transition team asked for records from the Department of Homeland Security last month regarding immigration detention facilities, border wall and barrier construction along the Canadian and Mexican borders, and aerial surveillance programs. The transition team also requested information about all immigration-related executive orders issued by President Barack Obama. On the campaign trail, Trump said that he intended to rescind Obama's executive orders on immigration, including the Deferred Action for Childhood Arrivals program.
Democratic Objections to U.N. Resolution
- Senate Minority Leader Chuck Schumer (D-N.Y.), along with nine other Democratic senators, signed a bipartisan, nonbinding resolution objecting to United Nations Security Council Resolution 2334, which condemned Israeli settlement activity in the West Bank, East Jerusalem, and other Palestinian territories. The Senate resolution calls for the U.N. resolution to be repealed or fundamentally altered, reaffirms U.S. support for a two-state solution, and advocates direct and bilateral negotiations between Israel and Palestine. "Since the days of 'Zionism is racism,' the U.N. has been a fervently anti-Israel body and, unfortunately, that bias has never diminished. Knowing this, past administrations—both Democrat and Republican—have protected Israel from the vagaries of this biased institution. Unfortunately, by abstaining on United Nations Resolutions 2334, this administration has not followed in that path. This Senate resolution reaffirms that peace must come through direct negotiations in order to achieve a sustainable two-state solution," said Schumer in a statement. Marco Rubio (R-Fla.) offered a similar remark, saying, “Efforts to delegitimize Israel have been underway a long time at the United Nations and have now sadly been aided by the outgoing administration. But the time has come to turn back the tide and renew America’s commitment to the Jewish state.” Read more about the 115th Congress’ take on Israel and Palestine here.
The Obamacare Battle
- Key vote: The Senate began the process of repealing some elements of the Patient Protection and Affordable Care Act, commonly known as Obamacare, by passing a motion 51-48 to begin debating a budget bill in the coming weeks. The budget resolution can be used to repeal parts of the ACA that relate to the budget and taxes, including provisions that provide tax credits for low-income individuals to obtain health coverage, require all individuals to obtain coverage, and require employers to provide coverage. In 2015, Congress passed similar legislation, but President Barack Obama vetoed the bill. Read more about it here.
- Sen. Rand Paul (R-Ky.) was the only Republican to oppose the resolution. He said, “I’m a no. It adds $9.7 trillion in debt over 10 years.”
State
Who Will Choose the Next Vermont Supreme Court Justice?
- The Vermont Supreme Court unanimously ruled that outgoing Gov. Peter Shumlin (D) was unable to appoint a replacement for outgoing Justice John Dooley, who announced he was retiring at the end of March. Shumlin, whose term ended the following day, was expected to appoint someone from a list provided by the state Judicial Nominating Board before he left office. The court has five justices, and Dooley, appointed in 1987, is its most senior member. The lawsuit was filed by a pair of Republican legislators, Senate Minority Leader Joe Benning, and House Minority Leader Donald Turner, Jr. This leaves the nominating decision in the hands of the incoming governor, Phil Scott (R). In its decision, the court wrote, “We conclude that the Vermont Constitution does not authorize respondent to appoint an Associate Justice of this Court in anticipation of a vacancy that is not expected to occur until the expiration of the justice’s term of office, which will occur months after respondent leaves office.” Scott’s election in 2016 broke the Democratic trifecta in Vermont; his swearing-in will leave the state under divided government.
South Carolina Representative Indicted
- South Carolina Attorney General Alan Wilson (R) announced an indictment against State Rep. Chris Corley (R-54). Corley was charged with one count of Domestic Violence of a High and Aggravated Nature and one count of Pointing and Presenting a Firearm. The charges stem from Corley’s arrest a week prior after a physical altercation with his wife. According to his wife, Corley punched her in the face and threatened to kill her in front of their children. Due to state law, Corley was immediately suspended from the South Carolina House of Representatives when the indictment was announced. Corley was first elected to the chamber in 2014 and ran for re-election unopposed in 2016. South Carolina has been a Republican trifecta since 2003.
Arkansas Representative Pleads Guilty
- Arkansas Rep. Micah Neal (R-89) pleaded guilty to taking two kickbacks totaling $39,000 from a pair of nonprofit organizations. The kickback deals involved using funds from the state’s General Improvement Fund to pay for local projects, with the two nonprofits paying Neal some of that money in return. Although both nonprofits were unnamed in court documents, one “sought to create manufacturing jobs in northwest Arkansas, specifically for a specialized workforce including disabled veterans, disadvantaged youth and individuals recovering from substance abuse,” while the other is a “corporation operating a college located in Springdale, Arkansas.” Shane Wilkinson, Neal’s attorney, said that the representative faces up to 20 years in federal prison for the charges and that the plea agreement did not include any specifics about sentencing. Republicans currently hold a 66-33 majority in the state House, and Arkansas is one of 25 Republican trifectas.
Seven More States Get Things Started
- State legislative sessions are scheduled to begin in Connecticut, Massachusetts, Missouri, Nebraska, New Hampshire, New York, and Vermont. Of those seven states, Connecticut is currently a Democratic trifecta, while Missouri, Nebraska, and New Hampshire are Republican trifectas. Massachusetts, New York, and Vermont are currently under divided government. In total, 1,450 legislators will be back to work in those seven states. That number represents 19.6 percent of the 7,383 state legislators across the country.
Local
Who Should Oversee the Kansas City Police?
- The mayor of Kansas City, Missouri, and the Missouri governor-elect disagree on control of the Kansas City Police Department (KCPD). The department has been under state control since 1939—78 years—due to widespread corruption caused by a now-defunct political machine. Mayor Sly James (D) believes that local control of the KCPD should be reinstated and that Missouri law should be changed to allow the Kansas City Council to oversee its police force. James argues that the KCPD is the only police force in a major U.S. city under state control. Governor-elect Eric Greitens (R) argues that police officers prefer to remain under state governance with the direct support of the governor’s office. In December 2016, a petition to reinstate local control of the KCPD was filed and is currently in a 30-day period of public comment. If the petition is accepted by the secretary of state, roughly 100,000 signatures will be required to put the matter to a vote in 2018. Kansas City is the largest city in Missouri and the 37th-largest city in the U.S. by population.
Anchorage Sees Petition Regarding Nondiscrimination Ordinance
- A petition to repeal several provisions of a nondiscrimination ordinance was filed with the Anchorage city clerk by the local citizens’ group Protect Our Privacy. In 2015, the Anchorage City Council voted 9-2 to pass a law making it illegal to discriminate against any individual on the basis of sexual or gender identity. The law added equal rights protections for members of the LGBTQ community in the areas of housing, employment, and public accommodations and also provided exemptions for religious groups and those with ministerial duties. Shortly after its passage, opponents filed a referendum to repeal the law, but disagreements over referendum phrasing caused it to stall in the city attorney’s office. Kim Minnery, Protect Our Privacy’s primary sponsor, said the group’s goal is to protect citizen privacy and religious liberty from government intrusion. She also said the group is focused on fairness and equality for all people. Minnery told the Alaska Dispatch News that the group’s renewed efforts are in response to the national political climate and similar legislation emerging in other states. Proponents of the nondiscrimination ordinance argue that the petition is unnecessary, as city law already makes it illegal to harm, harass, or invade a citizen’s privacy. The city attorney’s office has 10 days from the time of the petition’s submission to review and respond to it. If it gains legal approval, Protect Our Privacy has until February 1, 2017, to gain the 5,700 signatures required to bring the referendum to the public for a vote. Anchorage is the largest city in Alaska and the 63rd-largest city in the U.S. by population.
Oakland Gets New Police Chief
- On Wednesday, Anne Kirkpatrick was named by Oakland Mayor Libby Schaaf (D) as new police chief of the embattled Oakland Police Department (OPD) in California. Kirkpatrick, who previously served as chief of police in Spokane, Washington, and is currently a high-ranking police official in Chicago, will take the reins of a police force that has been mired in a sexual abuse scandal since the summer of 2016. Previous OPD Chief Sean Whent resigned in June 2010 after a 19-year-old sex worker claimed she had sexual encounters with more than one dozen OPD officers in exchange for favors, including tip-offs prior to prostitution ring sweeps. Multiple officers were fired, four have been criminally charged in the scandal, and three additional officers are charged with failing to report the abuse. Over the previous six months, the OPD has operated without a permanent police chief, and two interim chiefs were appointed and dismissed within the span of one week. Oakland is the eighth-largest city in California and the 45th-largest city in the U.S. by population.
Chicago Law Dept Formally Sanctioned for Eighth Time
- For the eighth time since 2011, Chicago’s Law Department was formally sanctioned for withholding records related to the fatal police shooting of a citizen. According to a finding issued by U.S. District Court Judge Joan Gottschall, the city of Chicago ignored a court order to provide documents during the discovery process, which allows both the prosecution and defense to uncover facts through the exchange of documents, in the case of Divonte Young. Young was shot and killed by a Chicago police officer in 2012 after reports that he opened fire on two people. A weapon was never recovered. Gottschall concluded that city officials acted “in bad faith” when they failed to provide documents relevant to the case in a timely manner. The sanctions imposed by Gottschall removed legal protections from the city that would have allowed it to withhold some evidence in the case from the Young family’s lawyer. Gottschall is also considering whether or not the city should pay the Young family’s attorney fees, and a decision is expected later in January. Chicago is the largest city in Illinois and the third-largest city in the U.S. by population.
Preview of the day
There were no items for this day in issue #46 of The Tap, which was published on December 17, 2016. See the "Review of the day" tab for more information.
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