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Tag: Government regulations

  • US to pull visas of Haitian officials, send assistance

    US to pull visas of Haitian officials, send assistance

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    SAN JUAN, Puerto Rico — The U.S. government will pull visas belonging to current and former Haitian government officials involved with criminal organizations as well as provide security and humanitarian assistance to Haiti, senior U.S. officials said Wednesday.

    The officials spoke to reporters by telephone on condition of anonymity as a U.S. delegation was arriving in the Caribbean country that has been paralyzed by gangs and antigovernment protests and is facing severe shortages of water, fuel and other basic supplies.

    The U.S. officials declined to name which Haitian officials would see their visas revoked or how many would be affected, adding only that the measure also applies to their immediate family members.

    The U.S. officials also said the government is working with Mexico on a U.N. resolution proposing specific sanctions and additional measures to address the many challenges facing Haiti.

    The officials declined to say how the upcoming aid would be distributed, although they noted that the U.S. Coast Guard will deploy a major cutter at the request of local officials.

    They also declined to say when, how and what kind of security and humanitarian assistance will be deployed, adding only that supplies such as bleach, water jugs and oral rehydration salts will be distributed amid a recent cholera outbreak that has killed dozens of Haitians and sickened a couple hundred more.

    U.S. Assistant Secretary for Western Hemisphere Affairs Brian Nichols flew to Haiti Wednesday and was scheduled to meet with politicians and civil society leaders.

    The trip comes just days after Prime Minister Ariel Henry requested the immediate deployment of foreign troops to help with security. Gangs have blockaded a major fuel depot and protests against Henry have added to the problems.

    The United Nations’ Security Council is scheduled to discuss Henry’s request later this month. In a letter sent to the council Sunday that was viewed by The Associated Press, U.N. Secretary-General António Guterres offered several options, including a rapid action force.

    It was not clear whether the U.N. or individual countries or both would send troops under such a plan.

    On Tuesday, State Department Spokesman Ned Price said the U.S. government was reviewing Henry’s request with international partners “to determine how we best could contribute to the removal of security constraints on medical and humanitarian measures aimed at halting the spread of cholera.”

    One month has passed since one of Haiti’s most powerful gangs surrounded a key fuel terminal in the capital of Port-au-Prince, preventing the distribution of some 10 million gallons of gasoline and diesel and more than 800,000 gallons of kerosene stored on site.

    In addition, protesters have blocked streets in the capital and other major cities to demand Henry’s resignation. Prices have soared since the prime minister last month announced that his administration could no longer afford to subsidize fuel.

    On Monday, Price said that the U.S. government wants “to be prudent and responsible in terms of what any such action might look like.”

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  • Hawaii won’t cooperate with states prosecuting for abortions

    Hawaii won’t cooperate with states prosecuting for abortions

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    HONOLULU — Hawaii Gov. David Ige signed an executive order Tuesday that aims to prevent other states from punishing their residents who get an abortion in the islands and stop other states from sanctioning local doctors and nurses who provide such care.

    “We will not cooperate with any other state that tries to prosecute women who receive abortions in Hawaii. And we will not cooperate with any other state that tries to sanction medical professionals who provide abortions in Hawaii,” Ige, a Democrat, said at a news conference.

    Ige is the latest Democratic governor to take such a step in response to conservative states that have adopted bans and tight restrictions on abortion. The push for more abortion restrictions accelerated after the U.S. Supreme Court in June overturned Roe v. Wade which had guaranteed a federal right to abortion for nearly 50 years.

    Ige’s order takes effect immediately.

    Hawaii law allows abortion until a fetus would be viable outside the womb. After that, it’s legal if a patient’s life or health is in danger. The state legalized abortion in 1970, when it became the first in the nation to allow the procedure at a woman’s request.

    Hawaii officials don’t expect many people will travel to the islands solely to get abortions, given how far it is from the continental U.S. and how expensive it is to fly here.

    Even so, Dr. Reni Soon said since the Supreme Court’s ruling, she has already provided abortions to residents of Texas, Georgia and Louisiana.

    She noted Hawaii gets a large number of tourists. The order could also protect college students and military personnel and their dependents who maintain residency in other states while they are in Hawaii temporarily.

    State Rep. Linda Ichiyama expressed concern about moves by other states to sanction or discipline doctors and nurses who are licensed in multiple states. Hawaii medical professionals targeted in this way could lose their ability to practice in the islands.

    Soon said this could have a chilling effect and deter medical professionals from providing abortion care to anyone in Hawaii.

    “This is actually about protecting our access here for both in-state and out-of-state patients,” Soon said.

    Ige’s order directs the state Department of Commerce and Consumer Affairs work with professional licensure boards to ensure no one loses a license for providing reproductive health care so long as the services provided were lawful and consistent with standards for good professional practice in Hawaii.

    The order prohibits executive agencies and departments from sharing medical records, billing and other data to other states in relation to reproductive health services legally provided in Hawaii. Ige said Hawaii also wouldn’t provide information about family members or friends who help people get abortions.

    Democratic governors of Colorado and North Carolina in July issued executive orders to protect abortion providers and patients from extradition to states that have banned the practice.

    California’s governor last month signed more than a dozen new abortion laws, including a measure that empowers the state insurance commissioner to punish health insurance companies that divulge information about abortions to out-of-state entities.

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  • California expands largest US illegal pot eradication effort

    California expands largest US illegal pot eradication effort

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    SACRAMENTO, Calif. — With California’s four-year-old legal marijuana market in disarray, the state’s top prosecutor said Tuesday that he will try a new broader approach to disrupting illegal pot farms that undercut the legal economy and sow widespread environmental damage.

    The state will expand its nearly four-decade multi-agency seasonal eradication program — the largest in the U.S. that this year scooped up nearly a million marijuana plants — into a year-round effort aimed at investigating who is behind the illegal grows. The new program will attempt to prosecute underlying labor crimes, environmental crimes and the underground economy centered around the illicit cultivations, said Attorney General Rob Bonta.

    He called it “an important shift in mindset and in mission” aimed at also aiding California’s faltering legal market by removing dangerous competition.

    “The illicit marketplace outweighs the legal marketplace” Bonta said. “It’s upside down and our goal is complete eradication of the illegal market.”

    In keeping with the new approach, the annual Campaign Against Marijuana Planting ( CAMP ) program started under Republican Gov. George Deukmejian in 1983 will become a permanent Eradication and Prevention of Illicit Cannabis (EPIC) task force, Bonta said.

    CAMP began in “a very different time, a different era, a different moment during the failed war on drugs and (at) a time when cannabis was still entirely illegal,” Bonta said.

    The seasonal eradication program, which lasts about 90 days each summer, still will continue with the cooperation of other federal, state and local agencies. They include the U.S. Forest Service, U.S. Bureau of Land Management, U.S. Drug Enforcement Administration, National Park Service, the California Department of Fish and Wildlife, California State Parks and the California National Guard, some of which will also participate in the new task force, he said.

    The task force will work with state Department of Justice prosecutors, the department’s Cannabis Control Section and an existing Tax Recovery in the Underground Economy ( TRUE ) task force that was created by law in 2020, all with the goal of filing civil and criminal cases against those behind illegal grows.

    Federal and state prosecutors in California have long tried, without much success, to target the organized crime cartels behind the hidden farms rather than the often itinerant laborers hired to tend and guard the often remote marijuana plots scattered across public and private land.

    The laborers frequently live in crude camps with no running water or sewers and use caustic pesticides to kill animals that might otherwise eat the growing plants. But the pollution they leave behind has spread into downstream water supplies and the pesticides can spread up through the food chain.

    The workers are victims of human trafficking, Bonta said, “living in squalid conditions alone for months on end and with no way out. These are not the people who are profiting from the illegal cannabis industry. They’re being abused, they’re the victims. They are cogs in a much bigger and more organized machine.”

    For example, about 80% of the 44 illegal grow sites found on and around Bureau of Land Management properties this year were connected to drug trafficking organizations, said Karen Mouritsen, the bureau’s California state director.

    “It’s clear that there are big challenges with respect to organized crime,” Bonta said. But he said he expects better results this time because the new year-round effort by multiple agencies “will make a big dent, a bit splash and lots of noise about our common priority to address the illicit marketplace, including at the highest levels.”

    Bonta is running to keep his job from Republican challenger and former federal prosecutor Nathan Hochman in next month’s election. He is taking a familiar recent approach by Democrats nationwide in concentrating on dealers who provide illegal drugs rather than the users who support the underground economy. President Joe Biden last week said he is pardoning thousands of Americans convicted of “simple possession” of marijuana under federal law, while San Francisco officials announced a new effort to curb open drug dealing.

    The year-round approach “is long since overdue,” Hochman said. “Only by hitting illegal drug growers where it hurts, by seizing their plants and their proceeds, will California be able to help the legal cannabis industry survive and thrive.”

    For those trying to exist under the legal market approved by California voters in 2016, the problem has been falling pot prices, restricted sales, high taxes despite the recent repeal of the cannabis cultivation tax, and the fact that buyers can find better bargains in the booming underground marketplace.

    Aside from the nearly 1 million plants that Bonta valued at about $1 billion, this year’s eradication program seized more than 100 tons of processed marijuana, 184 weapons and about 33 tons of materials used to cultivate the plants, including dams, water lines and containers of toxic chemicals including pesticides and fertilizers.

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  • Supreme Court to hear case that could raise price of pork

    Supreme Court to hear case that could raise price of pork

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    WASHINGTON — The Supreme Court will hear arguments over a California animal cruelty law that could raise the cost of bacon and other pork products nationwide.

    The case’s outcome is important to the nation’s $26-billion-a-year pork industry, but the outcome could also limit states’ ability to pass laws with impact outside their borders, from laws aimed at combating climate change to others intended to regulate prescription drug prices.

    The case before the court on Tuesday involves California’s Proposition 12, which voters passed in 2018. It said that pork sold in the state needs to come from pigs whose mothers were raised with at least 24 square feet of space, including the ability to lie down and turn around. That rules out the confined “gestation crates,” metal enclosures that are common in the pork industry.

    Two industry groups, the Iowa-based National Pork Producers Council and the American Farm Bureau Federation, sued over the proposition. They say that while Californians consume 13% of the pork eaten in the United States, nearly 100% of it comes from hogs raised outside the state, primarily where the industry is concentrated in the Midwest and North Carolina. The vast majority of sows, meanwhile, aren’t raised under conditions that would meet Proposition 12’s standards.

    The question for the high court is whether California has impermissibly burdened the pork market and improperly regulated an industry outside its borders.

    Pork producers argue that 72% of farmers use individual pens for sows that don’t allow them to turn around and that even farmers who house sows in larger group pens don’t provide the space California would require.

    They also say that the way the pork market works, with cuts of meat from various producers being combined before sale, it’s likely all pork would have to meet California standards, regardless of where it’s sold. Complying with Proposition 12 could cost the industry $290 million to $350 million, they say.

    So far, lower courts have sided with California and animal-welfare groups that had supported the proposition. But for a number of reasons the law has yet to go into effect.

    The Biden administration, for its part, is urging the justices to side with pork producers. The administration says Proposition 12 would be a “wholesale change in how pork is raised and marketed in this country.” And it says the proposition has “thrown a giant wrench into the workings of the interstate market in pork.”

    California’s Proposition 12 also covers other animals. It says egg-laying hens and calves being raised for veal need to be raised in conditions in which they have enough room to lie down, stand up and turn around freely. Those parts of the law aren’t at issue in the case.

    The case is National Pork Producers Council v. Ross, 21-468.

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  • Historic homes may prove to be more resilient against floods

    Historic homes may prove to be more resilient against floods

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    SUFFOLK, Va. — Whenever historic homes get flooded, building contractors often feel compelled by government regulations to rip out the water-logged wood flooring, tear down the old plaster walls and install new, flood-resistant materials.

    It’s a hurried approach that’s likely to occur across southwest Florida in the wake of Hurricane Ian. But restorers Paige Pollard and Kerry Shackelford say they know something that science is yet to prove: historic building materials can often withstand repeated soakings. There’s often no need, they say, to put in modern products such as box-store lumber that are both costly to homeowners and dilute a house’s historic character.

    “Our forefathers chose materials that were naturally rot-resistant, like black locust and red cedar and cypress,” said Shackelford, who owns a historic restoration business. “And they actually survive better than many of the products we use today.”

    Pollard and Shackelford are part of an emerging movement in the U.S. that aims to prove the resilience of older homes as more fall under the threat of rising seas and intensifying storms due to climate change. They hope their research near Virginia’s coast can convince more government officials and building contractors that historic building materials often need cleaning — not replacing — after a flood.

    In Florida, historic preservationists already fear older homes damaged by Ian may be stripped of original materials because so few craftsmen are available who can properly perform repairs.

    “There are some companies that just roll through, and their job is just to come in and gut the place and move on,” said Jenny Wolfe, board president of the Florida Trust for Historic Preservation.

    Pollard and Shackelford’s joint venture in Virginia, the retrofit design firm Building Resilient Solutions, opened a lab this year in which planks of old-growth pine, oak and cedar are submerged into a tank mimicking flood conditions. The tests are designed to demonstrate historic materials’ durability and were devised with help from Virginia Tech researchers.

    Meanwhile, the National Park Service has been working with the U.S. Army Corps of Engineers on similar research at the Construction Engineering Research Laboratory in Champaign, Illinois.

    Researchers there have read through construction manuals from the mid-19th and early 20th centuries to assemble everything from tongue-and-groove flooring to brick walls coated with plaster. The materials were lowered into water containing bacteria and mold to simulate tainted floodwater.

    The research may seem glaringly redundant considering all of the older homes that stand intact along the nation’s coasts and rivers: many have withstood multiple floods and still boast their original floors and walls.

    Pollard and Shackelford say lumber in older homes is resilient because it came from trees that grew slowly over decades, if not centuries. That means the trees’ growth rings were small and dense, thereby making it harder for water to seep in. Also, the timber was cut from the innermost part of the trunk, which produces the hardest wood.

    Plaster can also be water resistant, while common plaster coatings were made from lime, a substance with antiseptic qualities.

    But here’s the problem: U.S. flood insurance regulations often require structures in flood-prone areas to be repaired with products classified as flood-resistant. And many historic building materials haven’t been classified because they haven’t been tested.

    U.S. regulations allow exceptions for homes on the National Register of Historic Places as well as some state and local registries. But not everyone fully understands or is aware of the exceptions, which can be limited.

    The far bigger challenge is a lack of expertise among contractors and local officials, Pollard said. Interpretations of the regulations can vary, particularly in the chaos after a major flood.

    “You’ve got a property owner who’s in distress,” said Pollard, who co-owns a historic preservation firm. “They’re dealing with a contractor who’s being pulled in a million directions. And the contractors are trained to get all of that (wet) material into a dumpster as quickly as possible.”

    In Norfolk, Virginia, Karen Speights said a contractor replaced her original first floor — made from old-growth pine — with laminate flooring after her home flooded.

    Built in the 1920s, Speights’ two-story craftsman is in Chesterfield Heights, a predominantly Black neighborhood on the National Register of Historic Places. It sits along an estuary of the Chesapeake Bay in one of the most vulnerable cities to sea-level rise.

    “I still believe I had a good contractor, but flooding was not his expertise,” Speights said. “You don’t know what you don’t know.”

    Along Florida’s Gulf Coast, there are thousands of historic structures, said Wolfe of the Florida Trust. A large number of them are wood-framed houses on piers with plaster-and-lath walls.

    Many likely just need to be dried out after Ian, Wolfe said. But only so many local contractors know what to do “in terms of drying them slowly and opening up the baseboards to get circular airflow.”

    Andy Apter, president-elect of the National Association of the Remodeling Industry, agreed that many contractors aren’t well-versed in older building materials.

    “There’s no course that I know of that teaches you directly how to work on historical homes,” said Apter, a Maryland contractor. “It’s like an antique car. You’re going to be limited on where you can find parts and where you can find someone who’s qualified to work on it.”

    But interest in the resilience of older homes has grown since Hurricane Katrina, which deluged hundreds of thousands of historic structures along the Gulf Coast in 2005, according to Jenifer Eggleston, the National Park Service’s chief of staff for cultural resources, partnerships and science.

    Eggleston said the park service recognized the growing need to protect older structures and issued new guidelines last year for rehabilitating historic buildings in flood-prone areas.

    The guidelines recommend keeping historic materials in place when possible. But they don’t list specific materials due to the lack of research on their flood resistance.

    That’s where the studies come in.

    A recent study by the park service and Army Corps found that some historic materials, such as old-growth heart pine and cypress flooring, performed considerably better than certain varieties of modern lumber, Eggleston said.

    Those particular floor assemblies could be dried for reuse after so-called “clean water” damage, Eggleston said. But they would likely require refinishing to remove “biological activity,” such as mold and bacteria.

    Pollard and Shackelford said they’re hoping for an eventual shift in practices that will save money for homeowners as well as taxpayers, who often foot the bill after a major disaster.

    In the meantime, flooding in historic areas will only get worse from more frequent rain storms or more powerful hurricanes, said Chad Berginnis, executive director of the Association of State Floodplain Managers.

    “Think about our historic settlement patterns in the country,” Berginnis said. “On the coasts, we settled around water. Inland, we settled around water.”

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  • Racial equity in marijuana pardons requires states’ action

    Racial equity in marijuana pardons requires states’ action

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    By pardoning Americans with federal convictions for marijuana possession, President Joe Biden said he aimed to partially redress decades of anti-drug laws that disproportionately harmed Black and Latino communities.

    While Biden’s executive action will benefit thousands of people by making it easier for them to find housing, get a job or apply to college, it does nothing to help the hundreds of thousands of mostly Black and Hispanic Americans still burdened by state convictions for marijuana-related offenses, not to mention the millions more with other drug offenses on their records.

    Advocates for overhauling the nation’s drug laws are hopeful that Biden’s pardons lead state lawmakers to pardon and expunge minor drug offenses from people’s records. After all, they say, dozens of states have already decriminalized cannabis and legalized it for a multibillion-dollar recreational and medicinal use industry that is predominantly white-owned.

    “We know that this is really the tip of the iceberg when it comes to people who are suffering the effects of (past) marijuana prohibition,” said Maritza Perez, director of federal affairs at the Drug Policy Alliance, a nonprofit organization pushing for decriminalization and safe drug use policies.

    The decades-long “war on drugs,” a sweeping federal legislative agenda that Biden championed as a U.S. senator and that was mirrored by state lawmakers, brought about mass-criminalization and an explosion of the prison population. An estimated tens of millions of people have had a marijuana-related arrest on their record since 1965, the vast majority of them stemming from enforcement by local police and state prosecutors.

    But as many law enforcement officials like to point out, the majority of people who serve long sentences for marijuana-related offenses were convicted of more serious charges than possession, such as a weapons count or the intent to sell or traffic the drug on a larger scale. Such factors are typically how a case moves into federal territory versus state prosecution.

    Still, reform advocates counter that many of them aren’t violent drug kingpins.

    A 2021 Associated Press review of federal and state incarceration data showed that between 1975 and 2019, the U.S. prison population jumped from 240,593 to 1.43 million people. Of them, about 1 in 5 were incarcerated with a drug offense listed as their most serious crime.

    The passage of stiffer penalties for crack cocaine, marijuana and other drugs in the 1990s helped to triple the Black and Hispanic incarceration rates by the year 2000. The white incarceration rate only doubled.

    And despite state legalization or decriminalization of possession up to certain amounts, local law enforcement agencies continue to make more arrests for drug possession, including marijuana, than any other criminal offense, according to FBI crime data.

    The president’s pardon of more than 6,500 Americans with federal marijuana possession convictions, as well as thousands more with convictions in the majority-Black city of Washington, captures only a sliver of those with records nationwide. That’s likely why he has called on state governors to take similar steps for people with state marijuana possession convictions.

    “While white and Black and brown people use marijuana at similar rates, Black and brown people have been arrested, prosecuted and convicted at disproportionate rates,” Biden said Thursday. “Just as no one should be in a federal prison solely due to the possession of marijuana, no one should be in a local jail or state prison for that reason, either.”

    With the president’s unambiguous acknowledgement of racial inequity in marijuana enforcement, drug law reform advocates and those with convictions now see an opening to push for far more remedies to the harms of the war on drugs.

    Weldon Angelos, whose 2003 federal case for selling $300 worth of marijuana to a confidential informant in Utah got him sentenced to 55 years in prison, said he knows many people who will benefit from the president’s pardon. But there are also many more who will not, he said.

    “I feel like this is a first step of (Biden) doing something bigger,” said Angelos who, after serving 13 years in prison, received presidential clemency and a pardon during the Obama and Trump administrations. He is now a drug law reform activist.

    Felony cannabis cases like his also deserve consideration, Weldon said. Biden’s pardon does not cover convictions for possessing marijuana with an intent to distribute, which could further widen the scope of people receiving relief by tens of thousands.

    Enacting a law that clears a person’s federal drug record, similar to what has been offered in nearly two dozen states where marijuana has been decriminalized or legalized recreationally, would make the conviction invisible to companies and landlords doing criminal background checks, he said. Even with the federal pardon, Weldon’s record is still visible, he said.

    “There’s a lot more that needs to be done here, if we really want to unwind the effects, and the racist effects, of the war on cannabis,” Weldon said.

    Some advocates believe the country should consider clearing more than just marijuana records. In the 1990s, Marlon Chamberlain was a college student in Iowa when he learned that his then-girlfriend was pregnant with his eldest son. He began using cannabis to cope with the anxiety of becoming a young father and, soon after, started selling the drug.

    “My thought was that I would try to make enough money and have the means to take care of my son,” said Chamberlain, a 46-year-old Chicago native. “But I got addicted to the lifestyle and I graduated from selling weed to selling cocaine.”

    Chamberlain said he had a slew of state charges for marijuana possession between the ages of 19 and 25. But it was a federal case for crack cocaine, in which authorities used his prior marijuana arrests to enhance the seriousness of their case, that upended his life. Chamberlain was sentenced to 20 years in prison before the punishment was reduced to 14 years under the Fair Sentencing Act that narrowed the sentencing disparity between crack and powder forms of cocaine. He was freed after 10 years.

    Even though he will not benefit from Biden’s marijuana pardon, Chamberlain sees it as an opportunity to advocate for the elimination of what he calls the “permanent punishments,” such as the difficulties in finding a job or housing that come with having a past drug offense.

    “What Biden is initiating is a process of righting the wrongs” of the drug war, he said.

    Colorado and Washington were the first states to legalize the recreational use of cannabis in 2012, although medical use had already been legal in several states. According to the National Organization for the Reform of Marijuana Laws, 37 states, the District of Columbia and four U.S. territories now permit the medical use of cannabis. Nineteen states, D.C. and two territories have legalized its recreational use.

    And during next month’s midterm elections, voters in Arkansas, Maryland, Missouri, North Dakota and South Dakota will decide whether to permit recreational adult use of cannabis. That is reason enough for every state to look into mass-pardons and expungements, civil rights leaders say.

    “How fair is it that you will legalize marijuana now, tax it to use those state taxes to fund government, but forget all the people who are sitting in jails or were incarcerated when it was illegal?” NAACP President Derrick Johnson told the AP. “All those individuals who have been charged with marijuana crimes need to be pardoned, particularly those in states that have legalized marijuana.”

    Richard Wallace, executive director of Equity and Transformation, a social and economic justice advocacy group in Chicago, said state pardons must also come with some form of restitution to those who suffered economically under the racially discriminatory drug war.

    “We need to be thinking about building out durable reparations campaigns centered around cannabis legalization,” he said. “I think oftentimes we end up just fighting for the pardons and the expungements, and we leave out the economic component.”

    ———

    Aaron Morrison is a New York City-based member of AP’s Race and Ethnicity team. Follow him on Twitter: https://www.twitter.com/aaronlmorrison.

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  • EXPLAINER: How will OPEC+ cuts affect gas prices, inflation?

    EXPLAINER: How will OPEC+ cuts affect gas prices, inflation?

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    FRANKFURT, Germany — Major oil-producing countries led by Saudi Arabia and Russia have decided to slash the amount of oil they deliver to the global economy.

    And the law of supply and demand suggests that can only mean one thing: higher prices are on the way for crude, and for the diesel fuel, gasoline and heating oil that are produced from oil.

    The decision by the OPEC+ alliance to cut 2 million barrels a day starting next month comes as the Western allies are trying to cap the oil money flowing into Moscow’s war chest after it invaded Ukraine.

    Here is what to know about the OPEC+ decision and what it could mean for the economy and the oil price cap:

    WHY IS OPEC+ CUTTING PRODUCTION?

    Saudi Arabia’s Energy Minister Abdulaziz bin Salman says that the alliance is being proactive in adjusting supply ahead of a possible downturn in demand because a slowing global economy needs less fuel for travel and industry.

    “We are going through a period of diverse uncertainties which could come our way, it’s a brewing cloud,” he said, and OPEC+ sought to remain “ahead of the curve.” He described the group’s role as “a moderating force, to bring about stability.”

    Oil prices had fallen after a summer of highs. Now, after the OPEC+ decision, they are heading for their biggest weekly gain since March. Benchmark U.S. crude rose 3.2% on Friday, to $91.31 per barrel. Brent crude, the international standard, rose 2.8% to $97.09, though it’s still down 20% from mid-June, when it traded at over $123 per barrel.

    One big reason for the slide is fears that large parts of the global economy are slipping into recession as high energy prices — for oil, natural gas and electricity — drive inflation and rob consumers of spending power.

    Another reason: The summer highs came about because of fears that much of Russia’s oil production would be lost to the market over the war in Ukraine.

    As Western traders shunned Russian oil even without sanctions, customers in India and China bought those barrels at a steep discount, so the hit to supply wasn’t as bad as expected.

    Oil producers are wary of a sudden collapse in prices if the global economy goes downhill faster than expected. That’s what happened during the COVID-19 pandemic in 2020 and during the global financial crisis in 2008-2009.

    HOW IS THE WEST TARGETING RUSSIAN OIL?

    The U.S. and Britain imposed bans that were mostly symbolic because neither country imported much Russia oil. The White House held off pressing the European Union for an import ban because EU countries got a quarter of their oil from Russia.

    In the end, the 27-nation bloc decided to cut off Russian oil that comes by ship on Dec. 5, while keeping a small amount of pipeline supplies that some Eastern European countries rely on.

    Beyond that, the U.S. and other Group of Seven major democracies are working out the details on a price cap on Russian oil. It would target insurers and other service providers that facilitate oil shipments from Russia to other countries. The EU approved a measure along those lines this week.

    Many of those providers are based in Europe and would be barred from dealing with Russian oil if the price is above the cap.

    HOW WILL OIL CUTS, PRICE CAPS AND EMBARGOES CLASH?

    The idea behind the price cap is to keep Russian oil flowing to the global market, just at lower prices. Russia, however, has threatened to simply stop deliveries to a country or companies that observe the cap. That could take more Russian oil off the market and push prices higher.

    That could push costs at the pump higher, too.

    U.S. gasoline prices that soared to record highs of $5.02 a gallon in mid-June had been falling recently, but they have been on the rise again, posing political problems for President Joe Biden a month before midterm elections.

    Biden, facing inflation at near 40-year highs, had touted the falling pump prices. Over the past week, the national average price for a gallon rose 9 cents, to $3.87. That’s 65 cents more than Americans were paying a year ago.

    “It’s a disappointment, and we’re looking at what alternatives we may have,” he told reporters about the OPEC+ decision.

    WILL THE OPEC PRODUCTION CUT MAKE INFLATION WORSE?

    Likely yes. Brent crude should reach $100 per barrel by December, says Jorge Leon, senior vice president at Rystad Energy. That is up from an earlier prediction of $89.

    Part of the 2 million-barrel-per-day cut is only on paper as some OPEC+ countries aren’t able to produce their quota. So the group can deliver only about 1.2 million barrels a day in actual cuts.

    That’s still going to have a “significant” effect on prices, Leon said.

    “Higher oil prices will inevitably add to the inflation headache that global central banks are fighting, and higher oil prices will factor into the calculus of further increasing interest rates to cool down the economy,” he wrote in a note.

    That would exacerbate an energy crisis in Europe largely tied to Russian cutbacks of natural gas supplies used for heating, electricity and in factories and would send gasoline prices up worldwide. As that fuels inflation, people have less money to spend on other things like food and rent.

    Other factors also could affect oil prices, including the depth of any possible recession in the U.S. or Europe and the duration of China’s COVID-19 restrictions, which have sapped demand for fuel.

    WHAT WILL THIS MEAN FOR RUSSIA?

    Analysts say that Russia, the biggest producer among the non-OPEC members in the alliance, would benefit from higher oil prices ahead of a price cap. If Russia has to sell oil at a discount, at least the reduction starts at a higher price level.

    High oil prices earlier this year offset much of Russia’s sales lost from Western buyers avoiding its supply. The country also has managed to reroute some two-thirds of its typical Western sales to customers in places like India.

    But then Moscow saw its take from oil slip from $21 billion in June to $19 billion in July to $17.7 billion in August as prices and sales volumes fell, according to the International Energy Agency. A third of Russia’s state budget comes from oil and gas revenue, so the price caps would further erode a key source of revenue.

    Meanwhile, the rest of Russia’s economy is shrinking due to sanctions and the withdrawal of foreign businesses and investors.

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  • Hurricane Ian floods leave mess, insurance questions behind

    Hurricane Ian floods leave mess, insurance questions behind

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    NORTH PORT, Fla. — Christine Barrett was inside her family’s North Port home during Hurricane Ian when one of her children started yelling that water was coming up from the shower.

    Then it started coming in from outside the house. Eventually the family was forced to climb on top of their kitchen cabinets — they put water wings on their 1-year-old — and were rescued the next day by boat.

    After the floodwaters had finally gone down Barrett and her family were cleaning out the damp and muddy house. On the front lawn lay chairs, a dresser, couch cushions, flooring planks and a pile of damp drywall. Similar scenes played out across the block as residents tried to clear out the soggy mess before mold set in.

    North Port is about 5 miles (8 kilometers) inland and the Barretts – like many of its residents – live in areas where flood insurance isn’t required and therefore, don’t have it. Now many wonder how they’ll afford much-needed repairs.

    “Nobody in this neighborhood has flood insurance because we are a nonflooding area,” she said. “But we got 14 inches of water in our house.”

    Many people associate hurricanes with wind damage — downed power lines, shingles or roofing materials ripped off, trees blown over into homes or windows smashed by flying objects, and Hurricane Ian’s 150-mph (241-kph) winds certainly caused widespread damage.

    But hurricanes can also pack a massive storm surge as Ian did in places like Naples or Fort Myers Beach.

    Heavy rains from hurricanes can also cause widespread flooding far from the beach. Ian dumped rain for hours as it lumbered across the state, sending waterways spilling over their banks and into homes and businesses far inland from where Ian made landfall. People were using kayaks to evacuate their flooded homes, and floodwaters in some areas have still not gone down a week after landfall.

    “This is such a big storm, brought so much water, that you’re having basically what’s been a 500-year flood event,” said Florida Gov. Ron DeSantis.

    But flooding is not covered by a homeowner’s insurance policy.

    It must be purchased separately — usually from the federal government. Although most people have the option of purchasing flood insurance, it is required only on government-backed mortgages that sit in areas that the Federal Emergency Management Agency deems highest risk. Many banks require it in high-risk zones, too. But some homeowners who pay off their mortgage drop their flood insurance once it’s not required. Or if they purchase a house or mobile home with cash they may not opt for it at all. And flooding can and does happen outside those high risk areas where flood insurance is required.

    There have long been concerns that not enough people have flood insurance especially at a time when climate change is making strong hurricanes even stronger and making storms in general wetter, slower and more prone to intensifying rapidly. According to the Insurance Information Institute, only about 4% of homeowners nationwide have flood insurance although 90% of catastrophes in the U.S. involve flooding. In Florida that number is only about 18%.

    “We have experienced catastrophic flood events across the U.S. this year, including in Kentucky and Missouri, where virtually no one had flood insurance,” said the Institute’s Mark Friedlander.

    Hurricane Ian caused extensive flooding in areas outside of the high-risk zones. According to the consulting firm Milliman, roughly 18.5% of homes in counties that were under an evacuation order had federally issued flood insurance. In areas under an evacuation order that were outside of high-risk zones, 9.4% of homes had a policy.

    Last year, FEMA updated its pricing system for flood insurance to more accurately reflect risk called Risk Rating 2.0. The old system considered a home’s elevation and whether it was in a high-risk flood zone. Risk Rating 2.0 looks at the risk that an individual property will flood, considering factors like its distance to water. The new pricing system raises rates for about three-quarters of policyholders and offers price decreases for the first time.

    FEMA has long said the new ratings would attract new policyholders. However, a FEMA report to the treasury secretary and a handful of congressional leaders last year said far fewer people would buy flood insurance as prices rise. Since the new rating system has gone into effect in Florida, the number of polices in the state has dropped by roughly 50,000 since August 2021.

    After a federally declared disaster, homeowners with flood insurance are likely to receive more money, more quickly, to recover and rebuild than the uninsured.

    After major flooding in Louisiana in 2016, for example, the average payment to a flood insurance policyholder was $86,500, according to FEMA. Uninsured homeowners could get individual assistance payments for needs like temporary housing and property damage, but they averaged roughly $9,150.

    Congress sometimes provides additional aid after major disasters although that can take months to years to arrive.

    “Unless you have flood insurance, the federal government is not going to give you enough assistance to rebuild your home,” said Rob Moore, water and climate team director at the Natural Resources Defense Council.

    In the North Port neighborhood that was cleaning up from Ian, Ron Audette wasn’t sure whether he would get flood insurance going forward because of the cost. The retired U.S. Navy sailor was cleaning up his one-story home on a corner lot after floodwaters buckled the laminate flooring, swelled wood furniture and left the leather reclining sofa where he watched Patriots games a muddy, watery mess.

    “I don’t think we could live here if we had to buy flood insurance,” he said.

    But down the street, his neighbor Barrett was definitely planning to get it.

    “Get flood insurance even if it’s not required,” she advised. “Because we definitely will now.”

    ———

    Phillis reported from St. Louis, Missouri.

    ———

    The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment

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  • Australian police make first arrest in Optus hack probe

    Australian police make first arrest in Optus hack probe

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    CANBERRA, Australia — A police investigation of a cyberattack on an Australian telecommunications company in which the personal data of more than one third of Australia’s population was stolen has resulted in its first arrest, investigators said Thursday.

    Police launched Operation Hurricane in cooperation with the U.S. Federal Bureau Investigation after Optus, Australia’s second-largest wireless carrier, lost the personal records of 9.8 million current and former customers on Sept. 21.

    The hacker dumped the records of 10,000 of those customers on the dark web last week as part of an attempt to extort $1 million from Optus, a subsidiary of Singapore Telecommunications Ltd., also known as Singtel.

    A 19-year-old Sydney man was arrested on Thursday and charged with using the dumped data in a text message blackmail scam, police said in a statement.

    The man, who has not been identified publicly, has yet to appear in court on two charges that carry prison sentences of up to 10 and seven years.

    Police allege he sent text messages to 93 Optus customers demanding 2,000 Australian dollars ($1,300) be deposed in a bank account or the data would be used in a financial crime. None of the targets paid.

    One of the extortion targets, identified only as Belinda and described as a mother of a 5-year-old child with cancer, told Nine Network News last week, “To be honest, it’s just not what we need.”

    “I guess they’re just trying to hopefully pressure people into paying,” she told Nine.

    Australian Federal Police Assistant Commissioner Justine Gough said the investigation is continuing.

    “The Hurricane investigation is a high priority for the AFP and we are aggressively pursuing all lines of inquiry to identify those behind the attack,” Gough said.

    “Just because there has been one arrest does not mean there won’t be any more arrests,” she added.

    The Australian government announced changes to its telecommunications law to protect vulnerable Optus customers.

    The changes to the Telecommunications Regulations allow Optus and other providers to better coordinate with financial institutions and governments to detect and mitigate the risk of cybersecurity incidents, fraud, scams and other malicious cyber activities, a government statement said.

    Optus ran full-page ads in Australian newspapers on Saturday under the headline, “We’re deeply sorry.”

    The ad included a link to an Optus website that details actions that customers can take to avoid identity theft and fraud.

    The government can change regulations without legislative approval. But the government hopes to pass changes to the Privacy Act in Parliament during the final four weeks of its 2022 session in response to the Optus breach.

    The changes would include increased penalties for companies with lax cybersecurity protections and curbs on the quantities and types of customer data that businesses can amass, as well as the duration for which personal information can be kept.

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  • Australia updates law to protect data after Optus hack

    Australia updates law to protect data after Optus hack

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    CANBERRA, Australia — The Australian government announced changes Thursday to its telecommunications law to protect vulnerable customers after personal details were stolen in a major cyberattack on the nation’s second-largest wireless carrier.

    The changes to Telecommunications Regulations allow Optus and other providers to better coordinate with financial institutions and governments to detect and mitigate the risk of cybersecurity incidents, fraud, scams and other malicious cyber activities, Treasurer Jim Chalmers and Communications Minister Michelle Rowland said in a joint statement.

    “What this is all about is to try and reduce the impact of this data breach on Optus customers and to enable financial institutions to implement enhanced safeguards and monitoring,” Rowland told reporters.

    More than one in three Australians had personal data stolen when Optus lost the records of 9.8 million current and former customers including passport, driver’s license and national health care identification numbers in a hack discovered on Sept. 21.

    The hacker dumped the records of 10,000 of those customers on the dark web last week as part of an attempt to extort $1 million from Optus, a subsidiary of Singapore Telecommunications Ltd., also known as Singtel.

    Optus ran full-page ads in Australian newspapers on Saturday under the headline: “We’re deeply sorry.”

    The ad included a link to an Optus website that details actions customers can take to avoid identity theft and fraud.

    The government can change regulations without reference to the Parliament. But the government hopes to pass changes to the Privacy Act through the Parliament during its final four sitting weeks of 2022 in response to the Optus breach.

    The changes would include increased penalties for companies with lax cybersecurity protections and curbs on the quantities and types of customer data that businesses can amass, as well as the duration for which personal information can be kept.

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  • OPEC+ makes big oil cut to boost prices; pump costs may rise

    OPEC+ makes big oil cut to boost prices; pump costs may rise

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    FRANKFURT, Germany — The OPEC+ alliance of oil-exporting countries on Wednesday decided to sharply cut production to support sagging oil prices, a move that could deal the struggling global economy another blow and raise politically sensitive pump prices for U.S. drivers just ahead of key national elections.

    Energy ministers meeting at the Vienna headquarters of the OPEC oil cartel cut production by 2 million barrels per day starting in November at their first face-to-face meeting since the start of the COVID-19 pandemic.

    Besides a token trim in oil production last month, the major cut is an abrupt turnaround from months of restoring deep cuts made during the depths of the pandemic and could help alliance member Russia weather a looming European ban on oil imports.

    In a statement, OPEC+ said the decision was based on the “uncertainty that surrounds the global economic and oil market outlooks.”

    The impact of the production cut on oil prices — and thus the price of gasoline made from crude — will be limited somewhat because OPEC+ members are already unable to meet the quotas set by the group.

    The alliance also said it was renewing its cooperation between members of the OPEC cartel and non-members, the most significant of which is Russia. The deal was to expire at year’s end.

    The decision comes as oil trades well below its summer peaks because of fears that major global economies such as the U.S. or Europe will sink into recession due to high inflation, rising interest rates meant to curb rising consumer prices, and uncertainty over Russia’s war against in Ukraine.

    The fall in oil prices has been a boon to U.S. drivers, who saw lower gasoline prices at the pump before costs recently started ticking up, and for U.S. President Joe Biden as his Democratic Party gears up for congressional elections next month.

    White House press secretary Karine Jean-Pierre told reporters Tuesday that the U.S. would not extend releases from its strategic reserve to increase global supplies.

    Biden has tried to receive credit for gasoline prices falling from their average June peak of $5.02 — with administration officials highlighting a late March announcement that a million barrels a day would be released from the strategic reserve for six months. High inflation is a fundamental drag on Biden’s approval and has dampened Democrats’ chances in the midterm elections.

    Oil supply could face further cutbacks in coming months when a European ban on most Russian imports takes effect in December. A separate move by the U.S. and other members of the Group of Seven wealthy democracies to impose a price cap on Russian oil could reduce supply if Russia retaliates by refusing to ship to countries and companies that observe the cap.

    The EU agreed Wednesday on new sanctions that are expected to include a price cap on Russian oil.

    Russia “will need to find new buyers for its oil when the EU embargo comes into force in early December and will presumably have to make further price concessions to do so,” analysts at Commerzbank wrote in a note. “Higher prices beforehand — boosted by production cuts elsewhere — would therefore doubtless be very welcome.”

    Dwindling prospects for a diplomatic deal to limit Iran’s nuclear program have also lowered prospects for a return of as much as 1.5 million barrels a day in Iranian oil to the market if sanctions are removed.

    Oil prices surged this summer as markets worried about the loss of Russian supplies from sanctions over the war in Ukraine, but they slipped as fears about recessions in major economies and China’s COVID-19 restrictions weighed on demand for crude.

    International benchmark Brent has sagged as low as $84 in recent days after spending most of the summer months over $100 per barrel.

    At its last meeting in September, OPEC+ reduced the amount of oil it produces by 100,000 barrels a day in October. That token cut didn’t do much to boost lower oil prices, but it put markets on notice that the group was willing to act if prices kept falling.

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  • Ian deals blow to Florida’s teetering insurance sector

    Ian deals blow to Florida’s teetering insurance sector

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    Daniel Kelly and his wife bought a 1977 doublewide mobile home in May for about $83,000 at Tropicana Sands, a community for people 55 and older in Fort Myers, Florida. But he ran into roadblocks when he tried to insure it.

    Managers at Tropicana Sands told him he likely wouldn’t be able to find a carrier who would offer a policy because the home was too old. He said he checked with a Florida-based insurance agent who searched and couldn’t find anything.

    “I can insure a 1940s car, why can’t I insure this?” Kelly said.

    Kelly was lucky that his trailer was largely spared by Hurricane Ian aside from some flood damage. But for many Floridians whose homes were destroyed, they now face the arduous task of rebuilding without insurance or paying even steeper prices in an insurance market that was already struggling. Wind and storm-surge losses from the hurricane could reach between $28 billion and $47 billion, making it Florida’s costliest storm since Hurricane Andrew made landfall in 1992, according to the property analytics firm CoreLogic.

    Even before Ian, Florida’s home insurance market was dealing with billions of dollars in losses from a string of natural disasters, rampant litigation and increasing fraud. The difficult environment has put many insurers out of business and caused others to raise their prices or tighten their restrictions, making it harder for Floridians to obtain insurance.

    Those who do manage to insure their homes are seeing costs increase exponentially. Even before Hurricane Ian, the annual cost of an average Florida homeowners insurance policy was expected to reach $4,231 in 2022, nearly three times the U.S. average of $1,544.

    “They are paying more for less coverage,” said Florida’s Insurance Consumer Advocate Tasha Carter. “It puts consumers in dire circumstances.”

    The costs have gotten so high that some homeowners have forgone coverage altogether. About 12% of Florida homeowners don’t have property insurance — or more than double the U.S. average of 5% — according to the Insurance Information Institute, a research organization funded by the insurance industry.

    Florida’s insurance industry has seen two straight years of net underwriting losses exceeding $1 billion each year. A string of property insurers, including six so far this year, have become insolvent, while others are leaving the state.

    As of July, 27 Florida insurers were on a state watchlist for their precarious financial situation; Mark Friedlander, the head of communications for the Insurance Information Institute, expects Hurricane Ian will cause at least some of those to tip into insolvency.

    The insurance industry says overzealous litigation is partly to blame. Loopholes in Florida law, including fee multipliers that allow attorneys to collect higher fees for property insurance cases, have made Florida an excessively litigious state, Friedlander said.

    Florida currently averages about 100,000 lawsuits over homeowners’ insurance claims per year, he said. That compares to just 3,600 in California, which has almost double Florida’s population.

    The Florida Office of Insurance Regulation said the state accounts for 76% of the nation’s homeowners’ insurance claims lawsuits but just 9% of all homeowners insurance claims.

    “Plaintiff attorneys in Florida have historically found ways of circumventing any efforts at reining in legal system abuses, making it likely that ongoing reforms will be needed to further stabilize the insurance marketplace,” said Logan McFaddin of the American Property Casualty Insurance Association.

    But Amy Boggs, the property section chair for the Florida Justice Association — a group that represents attorneys — said the insurance industry is also at fault for refusing to pay out claims. Boggs said homeowners are driven to attorneys “as a last resort.”

    “No policyholder wants to be embroiled in years of litigation just to get their homes rebuilt,” she said. “They come to attorneys when their insurance company underpays their claim and they can’t rebuild.”

    Rampant fraud — particularly among roofing contractors — has also added to costs. Regulators say it’s common for contractors to go door-to-door offering to cover homeowners’ insurance deductible in exchange for submitting a full roof replacement claim to their property insurance company, claiming damage from storms.

    Things have gotten so bad with insurance that Florida Gov. Ron DeSantis called a special session in May to address the issues. New laws limit the rates attorneys can charge for some property insurance claims and require insurers to insure homes with older roofs — something they had stopped doing because of rising fraud claims.

    The legislation also includes a $150 million fund that will offer grants to homeowners to make improvements to protect against hurricanes. But that program has yet to be launched, and experts say it will take years to reverse the damage to Florida’s insurance market.

    In the meantime, the crisis has pushed more homeowners to Citizens Property Insurance Corp., the state-backed insurer that sells home insurance for those who can’t get coverage through private insurers.

    Citizens had more than 1 million active policies as of Sept. 23, before Ian hit, according to Michael Peltier, a spokesman at Citizens. In 2019, that number was roughly 420,000. He said the company had been writing 8,000 to 9,000 new policies per week, double compared with a few years ago. Citizens has $13.4 billion in reserves and predicts it will pay 225,000 claims from Ian worth a total of $3.7 billion.

    Even if they have homeowners’ insurance, many Floridians could still be facing financial ruin because of flooding. Flood damage isn’t typically covered by homeowners’ insurance but can be costly; Florida’s Division of Emergency Management says 1 inch of floodwater can do $25,000 in damage.

    Friedlander said just 18% of Florida homeowners carry flood insurance, either through the federal government’s National Flood Insurance Program or private insurers. In some coastal areas, more than half of homeowners have flood insurance, but in inland areas — where flood waters continued to rise even after the storm had passed — it’s closer to 5%.

    Kelly, whose trailer in Fort Myers was saturated in 4 feet of salt water and sewage after Hurricane Ian, could have benefitted from flood insurance. He thought he might not be able to get it because he didn’t have homeowners insurance, but that’s not the case — flood insurance is completely separate and can even be purchased by renters, experts say.

    “I kinda let it lie when I originally couldn’t find someone to insure it,” he said. “It’s a costly oversight on my part.”

    ————

    Associated Press writer Steve LeBlanc in Boston contributed to this report.

    ————

    For more coverage of Hurricane Ian, go to: https://apnews.com/hub/hurricanes

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  • American Airlines CEO defends JetBlue deal to federal judge

    American Airlines CEO defends JetBlue deal to federal judge

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    The CEO of American Airlines said Monday that his airline needed a partnership with JetBlue because Delta Air Lines had bulked up through a merger sooner than American, had more takeoff and landing rights at New York airports, and fewer unionized workers.

    Robert Isom also conceded that Delta has “run a nice, reliable airline” and enjoys some cost advantages over American.

    The Justice Department and six states are suing American and JetBlue in federal court over their regional partnership in the Northeast, which government lawyers call a de facto merger. Isom defended the arrangement, which has been in effect for well over a year, as JetBlue CEO Robin Hayes did last week during a trial in federal court in Boston.

    Hayes, however, once had misgivings about the deal — called the Northeast alliance, or NEA — because of American’s size advantage over JetBlue.

    “I think NEA is dead as Robin isn’t supportive,” former JetBlue executive Scott Laurence texted a consultant in January 2021.

    Laurence — who later jumped to American after a one-month gig at Delta — testified that Hayes worried American “had nearly unlimited resources” to tilt the alliance to its favor. Despite Hayes’ concerns, American and JetBlue announced their deal six months after Laurence’s text message.

    The Justice Department is trying to convince U.S. District Judge Leo Sorokin to kill the partnership, under which American and JetBlue work together to set schedules and share revenue, although they are not allowed to collaborate on prices. Government lawyers argue that the deal limits competition and will push fares higher.

    American and JetBlue say the government has no evidence that the deal is hurting consumers. To the contrary, they say it will help travelers by creating a stronger competitor to Delta and United in New York and Boston.

    American and JetBlue say they were unable to grow in New York on their own because they couldn’t get enough new takeoff and landing times — called slots — at congested airports. JetBlue resorted to unusual tactics including red-eye flights, and it tried to get slots from other airlines.

    “How did that go?” JetBlue lawyer Richard Schwed asked Laurence.

    “It went poorly,” the executive replied. “I don’t think our competitors were interested in seeing us gain more access.”

    The trial is expected to last about another week, but it could be weeks or months later until Sorokin issues his ruling — there is no jury.

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  • Task force urges safety improvements for stretch limos

    Task force urges safety improvements for stretch limos

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    ALBANY, N.Y. — Stretch limousines, like the one involved in a 2018 wreck that killed 20 people, should be equipped with side-impact protection devices and taken off the road if they are more than 10 years old, according to a New York task force convened to study safety problems with the oversized vehicles.

    The report, submitted Friday to the state’s governor and legislature, also recommended that limo drivers get more training and that passengers get a pre-trip safety demonstration, like the kind people get on airplanes, showing how to use seatbelts and escape a vehicle after a crash.

    Gov. Kathy Hochul’s administration intends to take “swift action” to implement the recommendations, said her spokesperson, Will Burns.

    State officials convened the task force to study oversized limos in the aftermath of the deadliest U.S. transportation accident of the past 13 years.

    On Oct. 6, 2018, a Ford Excursion SUV, which had been turned into a stretch limo, carrying a group of friends to a birthday celebration sped out of control on a hill and drove into a gully in Schoharie, New York. The driver and 17 passengers were killed, along with two pedestrians.

    State authorities said the limousine had brake problems and passengers shouldn’t have been allowed to ride in it. The National Transportation Safety Board issued a report saying that while the owner’s “egregious disregard for safety” likely caused the brake failure, ineffective state oversight also played a role.

    The limo’s operator had been able to keep the vehicle on the road even after it repeatedly failed safety inspections.

    Lawmakers and then-Gov. Andrew Cuomo passed a package of limo safety legislation, but the task force was convened to study other possible changes. Among the task force’s new recommendations was that stretch limos be taken out of service after 350,000 miles.

    David Brown, owner of Albany-based limousine service Premiere Transportation and one of the 11 members of task force, said his “biggest takeaway” from the report was a recommendation for better communication between state agencies responsible for enforcing commercial vehicle safety.

    ———

    Maysoon Khan is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Maysoon Khan on Twitter.

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  • What if Musk loses the Twitter case but defies the court?

    What if Musk loses the Twitter case but defies the court?

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    Twitter wants a Delaware court to order Elon Musk to buy the social media service for $44 billion, as he promised back in April. But what if a judge makes that ruling and Musk balks?

    The Tesla billionaire’s reputation for dismissing government pronouncements has some worried that he might flout an unfavorable ruling of the Delaware Court of Chancery, known for its handling of high-profile business disputes.

    Musk hopes to win the case that’s headed for an October trial. He’s scheduled to be deposed by Twitter attorneys starting Thursday.

    But the consequences of him losing badly — either by an order of “specific performance” that forces him to complete the deal, or by walking away from Twitter but still coughing up a billion dollars or more for breach of contract — has raised concerns about how the Delaware court would enforce its final ruling.

    “The problem with specific performance, especially with Elon Musk, is that it’s unclear whether the order of the court would be obeyed,” retired Delaware Supreme Court Justice Carolyn Berger told CNBC in July. “And the courts in Delaware — courts all over — are very concerned about issuing a decision or issuing an order that then is ignored, flouted.”

    Berger, who was also a vice chancellor of the Chancery Court in the 1980s and 1990s, stood by those concerns in an interview with The Associated Press but said she doubted the Delaware institution would go so far as to make him complete the deal.

    “The court can impose sanctions and the court can kind of coerce Musk into taking over the company,” she said. “But why would the court do that when what really is at stake is money?”

    Berger said she expects San Francisco-based Twitter to prevail, but said a less tumultuous remedy for the company and its shareholders would make Musk pay monetary damages. “The court doesn’t want to be in a position to step in and essentially run this company,” she said.

    Musk and his lawyers didn’t respond to requests for comment.

    Other legal observers say such defiance is almost impossible to imagine, even from a famously combative personality such as Musk. He acknowledged he might lose in August in explaining why he suddenly sold nearly $7 billion worth of Tesla shares.

    “I take him at his word,” said Ann Lipton, an associate law professor at Tulane University. “He wants to win. Maybe he’s got his own judgment as to what the odds are. But he’s also being sort of practical about this. He’s getting some cash ready so he doesn’t have to dump his Tesla shares if it turns out he is ordered to buy the company.”

    A ruling of specific performance could force Musk to pay up his $33.5 billion personal stake in the deal; the price increases to $44 billion with promised financing from backers such as Morgan Stanley.

    The Delaware court has powers to enforce its orders, and could appoint a receivership to seize some of Musk’s assets, namely Tesla stock, if he doesn’t comply, according to Tom Lin, a law professor at Temple University.

    In a precedent set just this week involving contempt for noncompliance with a court order, a judge affirmed that shares of a company incorporated in Delaware are personal property subject to the Court of Chancery’s jurisdiction. The judge noted in his Monday ruling that it might be the first time the court has invoked its authority to address ownership of shares in a contempt proceeding, as he divested an entity of its shares and transferred title to another party in the lawsuit.

    Speculation that Musk could be threatened with jail time for failing to comply with a ruling is unrealistic, said Berger. “At least, not for the Court of Chancery,” said the former judge. “That’s not the way the court operates.”

    But more important, Lin said Musk’s legal advisers will strongly urge him to comply with the rulings of a court that routinely takes cases involving Tesla and other firms incorporated in the state of Delaware.

    “If you are an executive at a major American corporation incorporated in Delaware, it’s very hard for you to do business and defy the chancery court’s orders,” Lin said.

    Concerns about Musk’s compliance derive from his past behavior dealing with various arms of the government. In a long-running dispute with the U.S. Securities and Exchange Commission, he was accused of defying a securities fraud settlement that required that his tweets be approved by a Tesla attorney before being published. He publicly feuded with California officials over whether Tesla’s electric car factory should remain shut down during the early stages of the COVID-19 pandemic.

    He’s also taken a combative approach in Delaware Chancery Court, calling an opposing attorney a “bad human being” while defending Tesla’s 2016 acquisition of SolarCity against a lawsuit that blamed Musk for a deal rife with conflicts of interest and broken promises. He and his lawyers have other Delaware cases still pending, including one involving his compensation package at Tesla.

    “I think we’ve got a whole lot of players who, as loose a cannon as Elon Musk is, rely on the goodwill of the Delaware courts on an ongoing basis for their businesses,” Lipton said.

    Musk’s argument for winning his latest Delaware case largely rests on his allegation that Twitter misrepresented how it measures the magnitude of “spam bot” accounts that are useless to advertisers. But most legal experts believe he faces an uphill battle in convincing Chancellor Kathaleen St. Jude McCormick, the court’s head judge who is presiding over the case, that something changed since the April merger agreement that justifies terminating the deal.

    The trial begins Oct. 17 and whichever side loses can appeal to the Delaware Supreme Court, which is expected to act swiftly. Musk and Twitter could also settle the case before, during or after the trial, lawyers said.

    Delaware’s courts are well-respected in the business world and any move to flout them would be “shocking and unexpected,” said Paul Regan, associate professor of Widener University’s Delaware Law School who has practiced in Delaware courts since the 1980s. “If there was some kind of crisis like that, I think the reputational harm would be all on Musk, not the court.”

    ——

    AP reporter Randall Chase in Dover, Delaware, contributed to this report.

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  • What if Musk loses the Twitter case but defies the court?

    What if Musk loses the Twitter case but defies the court?

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    Twitter wants a Delaware court to order Elon Musk to buy the social media service for $44 billion, as he promised back in April. But what if a judge makes that ruling and Musk balks?

    The Tesla billionaire’s reputation for dismissing government pronouncements has some worried that he might flout an unfavorable ruling of the Delaware Court of Chancery, known for its handling of high-profile business disputes.

    Musk hopes to win the case that’s headed for an October trial. He’s scheduled to be deposed by Twitter attorneys starting Thursday.

    But the consequences of him losing badly — either by an order of “specific performance” that forces him to complete the deal, or by walking away from Twitter but still coughing up a billion dollars or more for breach of contract — has raised concerns about how the Delaware court would enforce its final ruling.

    “The problem with specific performance, especially with Elon Musk, is that it’s unclear whether the order of the court would be obeyed,” retired Delaware Supreme Court Justice Carolyn Berger told CNBC in July. “And the courts in Delaware — courts all over — are very concerned about issuing a decision or issuing an order that then is ignored, flouted.”

    Berger, who was also a vice chancellor of the Chancery Court in the 1980s and 1990s, stood by those concerns in an interview with The Associated Press but said she doubted the Delaware institution would go so far as to make him complete the deal.

    “The court can impose sanctions and the court can kind of coerce Musk into taking over the company,” she said. “But why would the court do that when what really is at stake is money?”

    Berger said she expects Twitter to prevail, but said a less tumultuous remedy for the company and its shareholders would make Musk pay monetary damages. “The court doesn’t want to be in a position to step in and essentially run this company,” she said.

    Musk and his lawyers didn’t respond to requests for comment.

    Other legal observers say such defiance is almost impossible to imagine, even from a famously combative personality such as Musk. He acknowledged he might lose in August in explaining why he suddenly sold nearly $7 billion worth of Tesla shares.

    “I take him at his word,” said Ann Lipton, an associate law professor at Tulane University. “He wants to win. Maybe he’s got his own judgment as to what the odds are. But he’s also being sort of practical about this. He’s getting some cash ready so he doesn’t have to dump his Tesla shares if it turns out he is ordered to buy the company.”

    A ruling of specific performance could force Musk to pay up his $33.5 billion personal stake in the deal; the price increases to $44 billion with promised financing from backers such as Morgan Stanley.

    The Delaware court has powers to enforce its orders, and could appoint a receivership to seize some of Musk’s assets, namely Tesla stock, if he doesn’t comply, according to Tom Lin, a law professor at Temple University.

    The court has made such moves before, such as in 2013 when it held Chinese company ZTS Digital Networks in contempt and appointed a receiver with power to seize its assets. But after coercive sanctions didn’t work, the receiver asked the court five years later to issue bench warrants calling for the arrest of two senior executives the next time they visited the U.S.

    Speculation that Musk could be threatened with jail time for failing to comply with a ruling is unrealistic, said Berger. “At least, not for the Court of Chancery,” said the former judge. “That’s not the way the court operates.”

    But more important, Lin said Musk’s legal advisers will strongly urge him to comply with the rulings of a court that routinely takes cases involving Tesla and other firms incorporated in the state of Delaware.

    “If you are an executive at a major American corporation incorporated in Delaware, it’s very hard for you to do business and defy the chancery court’s orders,” Lin said.

    Concerns about Musk’s compliance derive from his past behavior dealing with various arms of the government. In a long-running dispute with the U.S. Securities and Exchange Commission, he was accused of defying a securities fraud settlement that required that his tweets be approved by a Tesla attorney before being published. He publicly feuded with California officials over whether Tesla’s electric car factory should remain shut down during the early stages of the COVID-19 pandemic.

    He’s also taken a combative approach in Delaware Chancery Court, calling an opposing attorney a “bad human being” while defending Tesla’s 2016 acquisition of SolarCity against a lawsuit that blamed Musk for a deal rife with conflicts of interest and broken promises. He and his lawyers have other Delaware cases still pending, including one involving his compensation package at Tesla.

    “I think we’ve got a whole lot of players who, as loose a cannon as Elon Musk is, rely on the goodwill of the Delaware courts on an ongoing basis for their businesses,” Lipton said.

    Musk’s argument for winning his latest Delaware case largely rests on his allegation that Twitter misrepresented how it measures the magnitude of “spam bot” accounts that are useless to advertisers. But most legal experts believe he faces an uphill battle in convincing Chancellor Kathaleen St. Jude McCormick, the court’s head judge who is presiding over the case, that something changed since the April merger agreement that justifies terminating the deal.

    The trial begins Oct. 17 and whichever side loses can appeal to the Delaware Supreme Court, which is expected to act swiftly. Musk and Twitter could also settle the case before, during or after the trial, lawyers said.

    Delaware’s courts are well-respected in the business world and any move to flout them would be “shocking and unexpected,” said Paul Regan, associate professor of Widener University’s Delaware Law School who has practiced in Delaware courts since the 1980s. “If there was some kind of crisis like that, I think the reputational harm would be all on Musk, not the court.”

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  • Pay bumps coming for more farmworkers, long denied overtime

    Pay bumps coming for more farmworkers, long denied overtime

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    STUYVESANT, N.Y. — Harvest season means long days for U.S. farmworkers — but usually no overtime pay. Federal law exempts farms from rules entitling most workers to 1.5 times their regular wage when they work more than 40 hours in a week.

    New York is now joining several states that have begun to change the rule.

    The state’s labor commissioner on Friday approved a recommendation to phase in a 40-hour threshold for farmworker overtime over the next decade. Right now, farmworkers in New York qualify for overtime pay only after they have worked 60 hours in a week.

    Labor Commissioner Roberta Reardon called the plan “the best path forward” for farmworker equity and success for agricultural businesses.

    Washington, Minnesota, Hawaii and Maryland have also granted forms of overtime entitlements to agricultural workers. California, an agricultural giant, this year began requiring farms to pay overtime to employees who work more than 40 hours in a week.

    The changes have excited workers, who say they sorely need the extra money, but alarmed some farm owners, who say extra labor costs could wipe out thin profits.

    Some labor movement advocates fear workers’ hours will be capped.

    That’s what Elisabeth Morales says happened at the grape vineyard where she works in California’s Central Valley. After the state’s overtime rules changed, the vineyard cut her hours to no more than 40 per week, and hired more laborers so it could get needed work done without having to pay overtime.

    Morales, a mother of four, said she had to take on a second job at McDonald’s to supplement her wages at the vineyard, which are $15 per hour for tasks like weeding plus 40 cents for every box of grapes she picks.

    “I would prefer to work the extra hours even though they don’t pay us overtime,” Morales, 43, said in Spanish.

    There isn’t much national data yet to say for sure whether lowering the overtime threshold will be as bad for farms’ bottom line as agribusiness predicts, or as good for workers as the labor movement hopes.

    Farm workers were excluded from overtime pay in the federal 1938 Fair Labor Standards Act, and some labor advocates say its a legacy of Jim Crow.

    The overtime rule change is aimed at people like Doroteo, a farmhand at a Long Island vineyard who works almost 60 hours a week during harvest season, supplementing his pay with landscaping jobs on the side.

    Doroteo prunes and weeds crops for $15 an hour. His pay peaks at $800 a week in the summer, when the most work needs to be done. He makes less in the fall, making it tougher to send money to his three children in Guatemala. He asked that his last name not be published because of worries he might be fired for talking about his job.

    But farm owners say agriculture has been exempt from overtime rules for a reason.

    “There has to be some common sense about what people expect when they go to work on a farm, and that it’s quite unique from other areas of work. It’s not something that can be done 40 hours a week and have weekends off,” said Nate Chittenden, the owner of a midsize dairy farm in Stuyvesant, New York.

    Besides members of his family, his farm has 10 full-time employees.

    “No farm wants to see people taken advantage of. We value people working on our farms. We want to provide for them a living while they work on our farm,” said Chittenden.

    New York state government created a tax credit intended to defray the cost of overtime for farm employers, which Chittenden said would help somewhat.

    In Washington state, this year saw the first harvest where farm workers could qualify for overtime pay after 55 hours worked. That threshold will drop in a phase-in that will make workers eligible for overtime after 40 hours worked by 2024.

    In California, as more workers became eligible for overtime, some farms have switched to less labor-intensive crops like walnuts and almonds, which can be harvested efficiently using man-operated equipment, said Brian Little, the director of employment policy at the California Farm Bureau, which represents farmers.

    He also said some growers are moving towards machines, rather than people, to do things like prune trees.

    “It can run for hours. It doesn’t care if it’s 95 degrees outside. It doesn’t take a lunch break, and it doesn’t care if it’s working nine and a half hours in a workday,” Little said.

    ———

    Maysoon Khan is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Maysoon Khan on Twitter.

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  • House approves scaled-down bill targeting Big Tech dominance

    House approves scaled-down bill targeting Big Tech dominance

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    WASHINGTON — The House on Thursday approved sharply scaled-down legislation targeting the dominance of Big Tech companies by giving states greater power in antitrust cases and increasing money for federal regulators.

    The bipartisan measure, passed by a 242-184 vote, pales in comparison with a more ambitious package aimed at reining in Meta, Google, Amazon and Apple and cleared by key House and Senate committees. That proposal has languished for months, giving the companies time for vigorous lobbying campaigns against it.

    The more limited bill would give states an upper hand over companies in choosing the location of courts that decide federal antitrust cases. Proponents say this change would avert the “home-court advantage” that Big Tech companies enjoy in federal court in Northern California, where many of the cases are tried and many of the companies are based.

    Many state attorneys general have pursued antitrust cases against the industry, and many states joined with the Justice Department and the Federal Trade Commission in their landmark lawsuits against Google and Meta (then called Facebook), respectively, in late 2020.

    The bill also would increase filing fees paid by companies to federal agencies for all proposed mergers worth $500 million or more, while reducing the fees for small and medium-sized transactions. The aim is to increase revenue for federal enforcement efforts.

    Under the bill, companies seeking approval for mergers would have to disclose subsidies they received from countries deemed to pose strategic or economic risks to the United States — especially China.

    “We find ourselves in a monopoly moment as a country,” Rep. Lori Trahan, D-Mass., said before the vote. “Multibillion-dollar corporations have grown into behemoths, eliminating any real competition in their industries and using their dominance to hurt small businesses and consumers. Meta’s monopoly power has enabled it to harm women, children and people of all ages without recourse. Amazon has used its dominance to copy competitors’ products and run small businesses into the ground.”

    The Biden administration, which has pushed for antitrust legislation targeting Big Tech, endorsed the bill this week.

    Even in reduced form, the legislation drew fierce opposition from conservative Republicans who split from their GOP colleagues supporting the bill. The conservatives objected to the proposed revenue increase for the antitrust regulators, arguing there has been brazen overreach by the FTC under President Joe Biden.

    Rep. Tom McClintock, R-Calif., described the FTC’s leader, Lina Khan, as a “a radical leftist seeking to replace consumers’ decisions with her own.”

    Another California Republican, Rep. Darrell Issa, told his colleagues: “If you want to stifle innovation, vote for this.”

    If Republicans win control of the House or Senate in the November elections, they are certain to try to crimp the activism of the FTC and to challenge its broader interpretation of its legal authority.

    The broader antitrust package would restrict powerful tech companies from favoring their own products and services over rivals on their platforms and could even lead to mandated breakups separating companies’ dominant platforms from their other businesses. It could, for example, prevent Amazon from steering consumers to its own brands and away from competitors’ products on its giant e-commerce platform.

    The drafting of that legislation marked a new turn in Congress’ effort to curb the dominance of the tech giants and anti-competitive practices that critics say have hurt consumers, small businesses and innovation. But the proposal is complex and drew objections to some provisions from lawmakers of both parties, even though all condemn the tech giants’ conduct.

    Lawmakers have faced a delicate task as they try to tighten reins around a powerful industry whose services, mostly free or nearly so, are popular with consumers and embedded into daily life.

    So with time to act running out as the November elections approach in about six weeks, lawmakers extracted the less controversial provisions on antitrust court venues and merger filing fees, putting them into the new bill that passed.

    Lawmakers added the provision targeting foreign subsidies to U.S. companies. Republicans especially have vocally criticized the Chinese ownership of popular video platform TikTok.

    In the Senate, Minnesota Democrat Amy Klobuchar is sponsoring similar legislation with Republicans Chuck Grassley of Iowa and Mike Lee of Utah.

    “Effective antitrust enforcement is critical to ensuring consumers and small businesses have the opportunity to compete,” Klobuchar said in a statement Thursday. “Enforcers cannot take on the biggest companies the world has ever known with duct tape and Band-Aids.”

    I

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  • Ian threatens Florida’s already unstable insurance market

    Ian threatens Florida’s already unstable insurance market

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    TALLAHASSEE, Fla. — Florida’s property insurance market was already in peril. Now comes Hurricane Ian.

    The massive storm that barreled into southwest Florida delivering catastrophic winds, rain and flooding is likely to further damage the insurance market in the state, which has strained under billion-dollar losses, insolvencies and skyrocketing premiums.

    The scale of the storm’s destruction will become more clear in the coming days but there is concern it could exacerbate existing problems and burden a state insurance program that has already seen a sharp increase in policies as homeowners struggle to find coverage in the private market.

    “Florida’s property insurance market was the most volatile in the U.S. before Hurricane Ian formed and will most likely become even more unstable in the wake of the storm,” said Mark Friedlander, communications director at the Insurance Information Institute.

    The private insurance industry has lost more than $1 billion in each of the last two years and hundreds of thousands of Floridians have had their policies dropped or not renewed. Average annual premiums have risen to more than $4,200 in Florida, triple the national average.

    More than a dozen companies have stopped writing new policies in the state, and several have closed shop this year. One company was declared insolvent and placed into receivership this week, as Ian was churning toward Florida.

    Homeowners unable to get coverage or priced out of plans have flocked to the state’s public insurer of last resort, Citizens Property Insurance, which this summer topped 1 million policies for the first time in almost a decade. Citizens Property Insurance was created by the state legislature in 2002 for Floridians unable to find coverage from private insurers.

    State regulators and insurers have long blamed lawsuits by homeowners as a major culprit in the state’s crisis. They say state law makes it highly profitable for lawyers to sue insurance companies even if the amount won is relatively small. In the last half of the 2010s, Florida accounted for about 8% of all homeowners’ claims in the U.S. but almost 80% of all homeowners’ lawsuits against insurers in the U.S., according to a letter from the state Office of Insurance Regular.

    In May, with hurricane season approaching, the state legislature convened for a special session to address the insurance crisis. In three days, with little public input or expert analysis, lawmakers approved sweeping legislation with bipartisan support that many in the statehouse regarded as a meaningful first step in repairing the market.

    Among the provisions was the creation of a $2 billion reinsurance program that insurers could buy into to help insulate themselves from risk, so long as they reduced rates for policyholders. The law offers grants of up to $10,000 to retrofit homes so they are less vulnerable to hurricane damage. It also moves to limit various attorney fees in insurance-related lawsuits.

    Even so, Florida’s primary rating agency, Demotech, this summer threatened downgrades to around two dozen companies. But concerns about their creditworthiness faded somewhat after the administration of Gov. Ron DeSantis agreed to allow the state to back up the insurers.

    DeSantis, during news conferences ahead of the storm, noted that flood claims could be a leading problem from Ian.

    Home insurance policies — including those in Citizens — do not include flood coverage, which is handled under a federal program and is separate issue from the insurance market. The federally-backed flood insurance is generally mandated for mortgaged homes in flood zones, but people who fully own their homes sometimes decline to get it and it’s less common in areas not usually prone to flooding.

    “We are looking at a lot of flood claims,” the governor said when asked about the potential for claims to overrun Citizens Property Insurance. “I’m not saying there’s not going to be a lot of wind damage, I mean it’s a hurricane so you’re likely to see that.

    “There’s more that I want to do in terms of the wind insurance and that will be something we’re going to address. I mean look, at the end of the day we’ve got to make sure folks are taken care of, and so we will do that, whatever we need to do.”

    DeSantis, at a news conference Wednesday, said Citizens Property Insurance should be in solid shape even after claims from Hurricane Ian, given that the state-backed company has billions of dollars in surplus. A spokesman for Citizens said it estimates 225,000 claims and $3.8 billion in losses from Ian, though he noted those projections were made before the storm made landfall and would likely change as damaged is fully assessed.

    “Their modeling, based on paying out a lot of money in claims for this, was that they would still have between 4 and 5 billion in surplus. So they view themselves as being able to weather this,” DeSantis said.

    More than 2.5 million people in Florida were under mandatory evacuation orders when Ian made landfall Wednesday afternoon. Some residents left their homes, hoping for minimal damage upon their return.

    “I just don’t see the advantage of sitting there in the dark, in a hot house, watching water come in your house,” said Tom Hawver, a handyman in Fort Myers, who evacuated his home Wednesday. “And I can’t do anything about the wind or the water, so I’ll go back in a couple of days and assess it.”

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