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July 01, 2020

Alert: State and Federal Updates

In case you missed it, there has been much activity at a state and federal level that dealers should be aware of.  A summary of recent activity includes:

State Update

Ohio Attorney General Urges Ohio Tax Credit Authority to Seek Repayment of $60 Million Dollars in Tax Credits After GM Breaks Promise to Stay in Lordstown. 

The Attorney General has filed a brief with the Ohio Tax Credit Authority on behalf of Ohio’s citizens and to ensure that economic development awards granted to encourage growth in business, in capital investments, and in workforce retention and creation are used according to applicable laws.

According to its June 30th Press Release, “In January 2009, GM began to receive significant tax credits from the state of Ohio for Lordstown operations. GM made the promise that the company would maintain operations at its Lordstown plant through 2028 and retain 3,700 jobs through 2040. GM made those promises – under contract – in exchange for $60 million in tax credit certificates from Ohio. GM got its tax credits, but it did not fulfill its side of the contract, and closed the Lordstown plant in 2019.” 

Federal Updates

US Supreme Court Rules President May Remove CFPB Director “At Will”

The U.S. Supreme Court ruled on June 29th that a provision of the 2010 Dodd-Frank Act that only allows the president to remove the director of the Consumer Financial Protection Bureau (CFPB) for cause is unconstitutional because it places too much executive authority in a single individual other than the president.  Instead, the court held that the president may remove the CFPB director "at will", meaning with or without cause.  Chief Justice Roberts issued the Opinion of the Court holding the removal provision unconstitutional but finding that it could be severed from the remainder of the statute. 

US Senate passes Bill Extending PPP Application Deadline to August 8th

The U.S. Senate on June 30th cleared legislation to extend the deadline for businesses to apply for coronavirus aid under the Paycheck Protection Program (PPP), which expired at 11:59 pm that day.  Under the bill passed by the Senate by unanimous consent, the deadline for applying for PPP loans would be extended until Aug. 8.  Next the House will need to act on the extension.