Report

DELEGATION MEMBERS AND STAFF

From 12–16 July 2014, a delegation from the Canadian Section of the Canada–United States Inter‑Parliamentary Group (IPG) attended the 69^th annual meeting of the Council of State Governments’ Midwestern Legislative Conference (MLC) in Omaha, Nebraska. The members of the delegation were the Honourable Jane Cordy, Senator, the Honourable Scott Tannas, Senator, Mr. Leon Benoit, M.P. and Mr. John Rafferty, M.P. Mr. Maxime-Olivier Thibodeau accompanied the delegation as Advisor to the Canadian Section.

THE EVENT

The MLC, which meets annually, is a regional association of state legislators from 11 U.S. states; it also includes provincial legislators from four affiliate Canadian provinces (see the Appendix). The purpose of the MLC is to foster regional intergovernmental cooperation in the U.S. Midwest through the consideration of common problems, the exchange of information and ideas, the sharing of knowledge and experience, and – as appropriate – the pursuit of collaborative efforts to improve state government.

DELEGATION OBJECTIVES FOR THE EVENT

Canada and the 11 MLC states share a mutually beneficial relationship. More than 8 million U.S. jobs depend on Canada–U.S. trade, and approximately 1.6 million of these jobs are in the 11 MLC states.  Canada is the largest trading partner for all Midwestern states. Goods valued at approximately $104 billion were exported from MLC states to Canada in 2013, and the value of trade in goods and services between the MLC states and Canada increased by $3 billion between 2012 and 2013. Recent data suggest that, in a recent 12-month period, more than 7.9 million Canadians visit MLC states and spent $1.7 billion, while residents of MLC states made more than 6 million visits to Canada and spent approximately US$1.6 billion.

The IPG aims to find points of convergence in respective national policies, to initiate dialogue on points of divergence, to encourage the exchange of information and to promote better understanding among legislators on shared issues of concern. Members of the Canadian Section of the IPG meet regularly with their federal counterparts, and also attend meetings of Governors and State legislators. At these events, Canadian delegates engage in conversations that help the Canadian Section to achieve its objectives, and that explain the nature and scope of the bilateral relationship.

Members of the Canadian Section found the MLC’s 2014 annual meeting to be a valuable opportunity to discuss the numerous opportunities for Canada and the U.S. Midwest to collaborate on improving regional economic development. As well, members benefited from presentations focused on a variety of policy areas that are important in both Canada and the United States, including trade and border issues. From the Canadian perspective, discussions of – and the resulting resolutions in relation to – two topics were of particular importance: commemoration of the commitment of the United States and Canada to the North American Free Trade Agreement (NAFTA) and continued encouragement of respect for the spirit of NAFTA by avoiding policies that are inconsistent with the integrated nature of supply chains in, and the economies of, the two countries; and a request to the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) to reconsider its proposed fee increase for agricultural quarantine inspections, and to continue to move to pre-clearance inspections and other measures that are based on a reasonable risk assessment in relation to products entering the United States from Canada.

Feeling that members of the delegation were able to achieve their objectives for the event, the Canadian Section plans to attend future annual meetings of the MLC to continue its work in advocating Canadian interests in the U.S. Midwest.

ACTIVITIES DURING THE EVENT

During the MLC’s 69^th annual meeting, the following plenary and concurrent sessions took place:

·         Agriculture & Natural Resources Committee:

·         Potential Impact of Hemp and Marijuana Legislation on Rural Economies

·         Federal Update: The Food Safety Modernization Act and the Farm Bill

·         States’ Role in Protecting the Population of Pollinators

·         State Policies to Support and Grow the Midwest’s Agricultural Sector

·         Wind Energy: How to Maximize Returns in the Midwest’s Rural Areas

·         Economic Development Committee:

·         Economic Gardening: “Grow Your Own” Development, Growth Strategies for States

·         A Case Study in Cross-State Economic Development Strategies: The Omaha-Council Bluffs Economic Development Partnership

·         U.S. Cluster Mapping Project: Benchmarking and Economic Performance of Clusters and Regions in the Midwest

·         Reinventing University Roles in a Knowledge-Based Economy: Best Practices for Higher Education and State Leaders

·         Education Committee:

·         Student Achievement and Assessment: Using Performance Data to Improve Teaching and Learning

·         Role of States in Ensuring Effective Teacher Preparation and Training

·         Higher Education Funding and Affordability

 

·         Health and Human Services Committee:

·         Managing Care in State Corrections Facilities: Efforts to Address Health Care Quality and Cost in the Prison System

·         Protecting Children: Best Practices and Trends in Child Welfare Policy

·         E-Cigarettes: The Science Behind an Emerging Trend — and State Regulatory Options

 

·         Midwest-Canada Relations Committee:

·         Cross-Border Mutual Aid in Times of Emergency: A Plan for the Midwest’s States and Provinces

·         Seven Ways to Solve U.S. Border Problems

·         Moving Inspections Away from the Border: A Review of Pilot Projects

·         Plenary and other sessions and presentations:

·         Keynote – The Zone of Sanity: The Midwest and America’s Future

·         Plenary Session – 20/20 Vision: Expert Panel on the Future of Midwestern States’ Economies

·         Featured Presentation – Partnering for Success: U.S. Strategic Command in the 21st Century

·         Featured Presentation – An Afternoon with Doris Kearns Goodwin

·         Fiscal Leaders Roundtable

·         Plenary Session – Midwestern Legislatures: Then and Now

·         Pathways to Prosperity: The Midwest’s Opportunity to Meet Rising Global Food Challenges

·         Pathways to Prosperity: The New Face of Manufacturing

·         Featured Performance – U.S. Senator George Norris on Nebraska’s History of Populism and its Move to a Unicameral Legislature

·         Mental Health Services for Young People: State Policy Options and Strategies

·         Smart Spending: Innovative Ways to Ensure Your State Is Investing in Proven Policies and Programs

·         Privacy Rights in the Age of Drones: The Role of States

·         Featured Presentation – A Preview of this Fall’s Elections

·         Closing Session – Professional Development Workshop: Mental Toughness for the Legislative Environment.

This report summarizes the plenary and selected concurrent discussions that occurred at the meeting.

CROSS-BORDER MUTUAL AID IN TIMES OF EMERGENCY: A PLAN FOR THE MIDWEST’S STATES AND PROVINCES

Greg Wilz, Government of North Dakota and Lee Spencer, Government of Manitoba

·         In 2009, North Dakota was the only U.S. state to be flooded, and neighbouring states and cities cooperated in order to combat the flooding; at some point, neighbouring Canadian provinces could be flooded too.

·         The Northern Emergency Management Assistance Compact (NEMAC) is a legal framework for cross-border mutual aid that allows systematic assistance in cases of emergency.

·         NEMAC started in the mid-1990s; on 3 January 2012, the U.S. Congress ratified the State and Province Emergency Management Assistance Memorandum of Understanding, which led to the ratification of NEMAC a year minus one day later, on 2 January 2013.

·         The states and provinces that have signed NEMAC include Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania, Alberta and Saskatchewan.

·         The process for a state or province to join NEMAC is the following:

·         sign the NEMAC agreement;

·         accept the NEMAC bylaws;

·         receive the operations manual from NEMAC; and

·         receive training from NEMAC.

·         Regarding its implementation, NEMAC’s main aspects are the following:

·         it does not require an emergency declaration by a state’s governor or a province’s premier;

·         its implementation is straightforward, as members advertise their need, receive resource cost estimates, and then make a decision about whether to use the resources being offered; and

·         the authority representing a participating jurisdiction may request the assistance of another participating jurisdiction.

·         Cross-border agreements between Canada and the United States that are similar to NEMAC exist in North America’s Northeast and Pacific Northwest regions.

·         NEMAC, the Northeast Agreement and the Pacific Northwest Agreement are closely aligned with the Emergency Management Assistance Compact, which has been signed by all 50 U.S. states.

·         Under NEMAC, it is possible for a state or a province to limit the scope of its involvement by using article IV (“Limitation”) together with article III (“Participating Jurisdictions’ Responsibilities).

·         When an emergency occurs, NEMAC enables the identification of the jurisdiction that has the appropriate resources to help, as well as the making of a request to obtain these resources; reimbursement by the requesting jurisdiction is then made possible by NEMAC.

·         NEMAC does not address the sharing of military resources, such as the services of the National Guard; another compact between Canada and the United States addresses that service.

·         As compared to a regional agreement like NEMAC, the International Request for Assistance (IREQ-A) is a simplified process that uses a single form to request, offer and accept assistance from an international jurisdiction in cases of emergency.

·         The next steps for NEMAC are to:

·         continue to market NEMAC to other jurisdictions;

·         attend the third meeting of the NEMAC Committee, which will focus on cross-border movement, in Winnipeg on 20–21 August 2014;

·         undertake the training of A-Teams, which are teams composed of two people for each jurisdiction, that is scheduled in fall 2014 for both U.S. and Canadian organizations; and

·         continue planning for table-top and functional exercises.

SEVEN WAYS TO SOLVE U.S. BORDER PROBLEMS

Earl Fry, Brigham Young University

·         U.S. border problems could be solved by:

·         ending U.S. stereotypes of Canada as a peaceful “Sleepy Hollow” and Mexico as modern‐day “Tombstone,” as the reality is that NAFTA is the largest free trade zone in the world, with 460 million people and a combined gross domestic product (GDP) much larger than the population and GDP in the European Union (EU);

·         dismantling the U.S. Department of Homeland Security into “workable units”;

·         creating world-class border infrastructure to facilitate the efficient movement of goods and people;

·         reducing the number of border patrol agents and the security infrastructure;

·         pushing for a North American energy sector that is nearly self-sufficient in recognition of the importance of crude oil and natural gas resources;

·         establishing a customs union between the United States and Canada; and

·         rejecting a “Fortress America” mentality by stopping to try to reconstruct the Great Wall of China and Maginot Line along the United States’ shared borders.

·         NAFTA is an important element to consider when looking at trade between Canada and the United States; there were more exports, in volume, from the United States to Canada than to the EU in 2013.

·         Since the terrorist attacks of 11 September 2001, “security trumps trade” and NAFTA has become less important.

·         Regarding the need to create world-class border infrastructure to facilitate the efficient movement of goods and people, the following points are relevant:

·         the United States and Canada should work together to create a world-class border;

·         the shared border between the United States and Canada should be “smart”; and

·         the implementation of the Beyond the Border Action Plan regarding perimeter security should move faster, as noted by such commentators as the Canadian Council of Chief Executives, and reported on by the Canadian Broadcasting Corporation.

·         Because of the importance and potential of its natural resources, North America should be considered to be an energy powerhouse.

·         An example of the integration of the U.S. and Canadian economies is the assembly of a rear suspension for a General Motors’ car, the parts of which come from the United States and Canada in approximately an equal proportion.

MOVING INSPECTIONS AWAY FROM THE BORDER: A REVIEW OF PILOT PROJECTS

Ron Rienas, Buffalo and Fort Erie Public Bridge Authority

·         The Peace Bridge, which is the third busiest commercial crossing between Canada and the United States, is a critical trade corridor; an average of 1.3 million trucks and approximately $40 billion in goods cross that bridge annually.

·          “Lessons learned” regarding pre-inspections of trucks at the border include the following:

·         improvements in information technology increase throughput capacity;

·         border fees should not be collected at an inspection booth;

·         an e-manifest should be required for all trucks, including those that are empty; and

·         radiation portal monitor technology should be updated.

·         The next steps regarding border inspections pilot projects are:

·         an independent analysis of pilot projects;

·         scenario modelling;

·         an agreement between the United States and Canada regarding border officer protection and accountability; and

·         an overarching land/sea/air pre-clearance agreement between the United States and Canada.

Louise Yako, British Columbia Trucking Association

·         Created in 1997, the International Mobility & Trade Corridor Program (IMTC) is a coalition of governmental and non-governmental organizations from both the United States and Canada.

·         Completion of the Aldergrove Replacement Project is scheduled for 2016.

·         The objective of the Pacific Highway Truck Staging Plaza Re-design is to expedite truck movement by creating reserved lanes and by re-organizing their pre-inspection by border agents.

·         According to a legal opinion commissioned by the Canadian Trucking Alliance, the U.S. Department of Agriculture’s APHIS fee increase is considered to be inconsistent with NAFTA.

·         The APHIS fee increase is being “positioned” as a cost-recovery measure, but it would lead to the illogical consequence of truck drivers stopping to use their transponder and moving to cash transactions in order to pay a smaller fee.

KEYNOTE – THE ZONE OF SANITY: THE MIDWEST AND AMERICA’S FUTURE

Joel Kotkin, Chapman University

·         Regarding the importance of water, the following points are relevant:

·         The availability of water provides the province of Manitoba with an enormous strategic advantage.

·         China is experiencing water challenges.

·         In Singapore, water is being “recycled.”

·         California’s water policy is “terrible” and the state has no water supplies.

·         Regarding the manner in which immigrants create growth in the U.S. Midwest, the following points are relevant:

·         Immigrants are “canaries in the coal mine”; they will avoid states that do not offer the possibility of a good quality of life for them and their family, and will choose states that offer affordable housing and the potential to prosper.

·         Immigrants provide communities with an additional set of skills and knowledge.

·         Immigrants are now present in all parts of the United States.

·         Because of immigration, the United States is not becoming an aging country.

·         Unlike a university-based “intellectual profession,” a “practical” job would be a good choice for many people.

·         Contractors in Texas are funding schools to educate carpenters and plumbers.

·         The U.S. Congress needs to be more assertive about its policy objectives and less ideological.

·         Local legislators should be the source of initiatives.

·         In 15-20 years, Americans will find it absurd that same-sex marriage was, at one point, a societal issue.

PLENARY SESSION – 20/20 VISION: EXPERT PANEL ON THE FUTURE OF MIDWESTERN STATES’ ECONOMIES

Ernie Goss, Creighton University

·         Changing the Renewable Fuel Standard could have a real impact on the U.S. Midwest.

·         There is a need for monetary reserves, which means that there should be no tax increases or increases in spending; in this regard, the examples provided by North Dakota and Texas, which were not affected by the most recent recession, are useful.

·         Roads and highways should not be financed by general public funds.

·         The fiscal uncertainty at the federal level is creating problems for the U.S. Midwest.

·         Legislators need to scrutinize the manner in which colleges and universities are spending money; in particular, it is not being spent for academic purposes, but rather on amenities, recreational facilities, etc.

·         Investments in Michigan’s film industry are ill-spent, as Hollywood will never move to the state.

Michael Gregory, BMO Financial Group

·         Fiscal uncertainty in Illinois and a number of fiscal issues at the federal level – such as the threat of a shutdown and the fiscal cliff – are sources of concern for the U.S. Midwest.

·         “Rainy-day funds” would increase market confidence, as – for example – money would be saved during good years in order to meet financial needs during bad years.

·         In funding infrastructure, public-private partnerships reduce the degree of reliance on taxpayers’ money.

·         Although interest rates are rising, they will continue to be historically low; it is their impact on inflation that is important.

Hasan S. Hyder, Union Pacific Railroad

·         In the Gulf Coast, the U.S. chemicals sector is being revitalized, as well as the energy sector (shale, oil and ethanol).

·         At present, there are very positive signs about the health of the energy, agriculture and manufacturing sectors.

·         The fiscal uncertainty at the federal level is creating a challenge for businesses.

·         In order to capitalize on the U.S. Midwest’s advantages, there is a need to look at the entire supply chain.

·         Developing countries need agricultural products that are high in protein, such as corn and soybeans.

Joel Kotkin, Chapman University

·         It is unlikely that the Keystone XL Pipeline project will be approved by the Obama administration.

·         A two-year technical degree is a less expensive investment than are other degrees; Midwesterners need to be more focused on the uses to which their education can be put when they choose the kind of education in which to invest.

·         The “low-hanging fruit” for the future economic prosperity of Midwestern states is job-related education and the involvement of businesses in that education.

·         Rather than trying to be the “new Austin” or the “new Silicon Valley,” communities and regions in the U.S. Midwest should assess their advantages and disadvantages, and capitalize on the former.

·         For Michigan, the entertainment industry is not “the answer” to economic prosperity; the entertainment industry is a “huge race to the bottom,” with relatively low wages and poor working conditions.

·         It is important to assess the type of industry that “makes sense” for a region.

KEYNOTE PRESENTATION: AN AFTERNOON WITH DORIS KEARNS GOODWIN

Doris Kearns Goodwin, Author

·         For Presidents Abraham Lincoln, Theodore Roosevelt and Franklin Delano Roosevelt, understanding the technology of the time and using it to their advantage was a key element of their public communication strategy.

·         The entire country listened to President Franklin Delano Roosevelt’s weekly radio speech to the nation.

·         Presidents John Fitzgerald Kennedy and Ronald Reagan “mastered” television.

·         With social media today, the “first impression” “trumps” the integrity of information, and it is more important to be “quick” than to be “right”; people’s attention span has been shortened, their capacity to focus has diminished, and they have lost their ability to join forces in order to achieve a common goal.

·         As stated by President Franklin Delano Roosevelt, “problems made by men can be solved by men.”

PLENARY SESSION – MIDWESTERTN LEGISLATURES: THEN AND NOW

Gary Moncrief, Boise State University

·         Americans assert the following things about state legislatures:

·         In many ways, states are better prepared today than they were in the past to be “important partners” in the federal system.

·         As policy makers, states are currently ascending.

·         Over the course of the 20^th century, states lost power to the federal government; although there are many reasons for this loss, it must be acknowledged that – in part – it was the fault of the states.

·         In the 1950s, state legislatures were “backwater institutions.”

·         In the 1960s, during the “reapportionment revolution,” there was a shift toward urban and suburban representation, women and minorities were better represented, and the legitimacy of state legislatures increased.

·         In the 1970s, during the “modernization movement,” the importance of increasing state legislatures’ capacity was demonstrated by some reforms that were largely effective, including: increased staffing; better working facilities; higher pay; and a movement to annual sessions.

·         In the 1980s, during an era of increased autonomy and growing “careerism,” population growth occurred, but the number of seats in state legislatures remained the same and “job pressures” and “service to constituents,” among other things, increased significantly while more time was spent on re-election, fundraising, etc.

·         In the 1990s, with a focus on “direct democracy,” initiative referenda and recall mechanisms increased.

·         In the 2000s, in an age of “fiscal stress,” new technology, opportunity and polarization, efforts were directed to altering legislative institutions; as well, partisan polarization occurred, “gridlock” at the national level was observed, some state governments were unified (which means that the executive and legislative chambers are controlled by the same party), and the future of fiscal federalism was addressed.

·         With Congressional “gridlock” in Washington, D.C., and the state of the federal tax system, states will have to take more fiscal responsibilities on their own.

·         While activities stemming from the healthcare and transportation sectors are no longer only occurring within states’ borders because of the global nature of the economy, policy still needs to be made at the state level.

·         States could “get together” to “force” regulatory decisions, including with respect to the U.S. Congress.

·         It is not obvious that a divided government, where power is divided between political parties, as opposed to a polarized government, where power is divided between ideological movements, can be efficient.

·         An executive order that has rule-making effect can be a problem when it “undoes” the work completed at the state level.

·         The role of media has increased in legislatures’ work; while technology creates new opportunities, it also allows the same story to be told in a variety of ways by increasing the number of commentators.

·         The negative political strategies of “running against the institution” and “defining your opponent” highlight the need for more civic education in the United States.

·         With term limits for legislators, the executive branch, particularly governments and bureaucrats, have more power.

PATHWAYS TO PROSPERITY: THE NEW FACE OF MANUFACTURING

Becca Dernberger, Manpower and Ann Franz, NEW Manufacturing Alliance

·         Through a partnership between manufacturers and schools that is designed to finance scholarships, some manufacturers fund certain projects that create profits for schools, and schools invest these profits in scholarships.

·         A change in the manufacturing sector’s “image” to make the sector more attractive for students, as well as leadership from colleges that have established certain programs to meet business needs, have resulted in a significant increase in registration in these programs.

·         Students enrolled in programs that are designed to meet the needs of businesses are mostly local at the present time; however, in future, attracting students from outside the U.S. Midwest region may be a focus.

PRIVACY RIGHTS IN THE AGE OF DRONES: ROLE OF THE STATES

Jeramie Scott, Electronic Privacy Information Center

·         A drone is defined as “any unmanned aircraft.”

·         The U.S. Federal Aviation Administration (FAA) is responsible for administering the use of drones in the U.S. national air space.

·         There is a need for guidelines regarding privacy in relation to the use of drones; this need led the Electronic Privacy Information Center to suggest guidelines in this regard.

·         U.S. Customs and Border Protection and the U.S. military use the same drones, although those used by the former are not equipped with weapons.

·         Local law enforcement agencies are required to have a warrant in order to use drones for surveillance purposes.

·         With drones, which are a less costly surveillance method, surveillance can occur 24 hours each day, seven days each week.

·         While large drones are clearly under the FAA’s jurisdiction, its jurisdiction over small drones has been challenged.

·         Drones have the capacity to record a huge amount of data, which gives rise to the issue of privacy in public spaces; the U.S. Supreme Court has issued a decision in this regard.

·         Transparency and accountability in relation to the person or organization collecting data with the use of drones are the main concerns related to privacy rights.

·         The ability to aggregate all of the data that are being collected by drones compromises the privacy of the people to which the data are related.

·         Amazon, Google, the media and the entertainment industry, among others, want to use drones for commercial purposes; for example, Google Street View was collecting wi-fi data as it was taking pictures of streets.

·         With tools such as geo-location, Amazon is using drones to deliver packages, and deliveries can occur as soon as two hours after the order is placed.

·         In legislation pertaining to law enforcement agencies’ use of drones, some limitations exist; in particular, the first amendment – which guarantees, among other things, the freedom of speech – must be balanced with privacy rights.

·         While the private sector uses drones for commercial purposes, the government buys information from the private sector and the government’s recourses, in its legal proceedings against a person, are based on that information.

·         Policy makers should examine all technology, and not just drones, in order to determine the privacy issues that are relevant.

·         The private sector does not want drones to be regulated in any way.

·         At present, 13 states have passed legislation relating to drones and 26 states have introduced legislation in that regard.

·         Illinois’ “drone bill” is targeted at law enforcement agencies, and provides time limits in relation to data retention, among other issues.

·         As drones fly at low altitudes, there is an issue about private property rights for the owners of the lands over which the drones fly; in one case, a majority of the U.S. Supreme Court concluded that the government had trespassed with its drone and the concurring opinion identified a need to review the limits of the expectation of privacy.

·         Legislation in relation to drones is required in order to provide privacy guidelines for individuals, and to assist in the determination of the manner in which technological advances should be addressed.

FEATURED PRESENTATION: A PREVIEW OF THIS FALL’S ELECTIONS

Jennifer Duffy, The Cook Political Report

·         The 2014 elections will be the first mid-term elections in which social media have a role to play.

·         There are two types of elections in the United States: micro, which have a local impact, and macro, which have a national impact; 2014 will be a macro election.

·         According to a Gallup poll, 7% of Americans have confidence in the U.S. Congress.

·         The “6^th-year itch” normally favours the “out-party,” which – in this case – is the Republican Party; however, like 1998, this outcome does not appear to be happening.

·         U.S. voters are pessimistic about the American economy.

·         Usually, foreign policy problems and scandals happen in a U.S. president’s second term.

·         U.S. reaction to “Obamacare” favours Republicans; Democrats refuse to admit that this health care reform is an electoral issue.

·         U.S. voters are concerned about the treatment of veterans and Iraq, among other issues.

·         The Democrats’ advantages are the Republicans’ weaknesses.

·         The Tea Party, which is seen as having “hijacked” the Republican Party, projects a radical image and – since 2012 – has failed to attract minorities and women.

·         The Democrats are better at “getting the vote out” and at using technology to their advantage; the use of technology is “the lesson” of the 2012 election.

·         In the U.S. Senate, the Republicans need six seats to gain the majority; they have a 50/50 chance of gaining at least that number of seats.

·         In the U.S. House of Representatives, the Democrats need 17 seats to gain the majority; it will be difficult for them to win this number of seats.

 

Respectfully submitted,