CHAPTER 24-25CHAPTER 24-25

GOVERNMENTGOVERNMENT

STATE STATE GOVERN-GOVERN-

MENT MENT POLICYPOLICY

STATE POWERSSTATE POWERS1.1. (Police Power) Regulation of (Police Power) Regulation of

BusinessBusiness

2.2. Regulates the EnvironmentRegulates the Environment

3.3. Protects Life and PropertyProtects Life and Property

4.4. Provides for:Provides for: EducationEducation HealthHealth WelfareWelfare

5.5. Provides other services:Provides other services: Roads, sewers, entertainment, etc.Roads, sewers, entertainment, etc.

#1. POLICE POWER#1. POLICE POWERREGULATION OF BUSINESSREGULATION OF BUSINESS

A.A. Public UtilitiesPublic Utilities

B.B. Protecting ConsumersProtecting Consumers

C.C. Protecting WorkersProtecting Workers

D.D. Business DevelopmentBusiness Development

REGULATION OF BUSINESS REGULATION OF BUSINESS A. PUBLIC UTILITIESA. PUBLIC UTILITIES

SUPPLIES SUPPLIES NECESSITIESNECESSITIES::

ElectricityElectricity GasGas TelephoneTelephone TransportationTransportation

Regulation of Business:Regulation of Business:B. Protecting ConsumersB. Protecting Consumers

False AdvertisingFalse Advertising Health care regulationsHealth care regulations Regulating interest ratesRegulating interest rates Regulating consumer costsRegulating consumer costs

FALSE ADVERTISING:FALSE ADVERTISING: The The ad clearly offered the car for "1,395 bananas." ad clearly offered the car for "1,395 bananas."

Mrs. Bernice Wyszynski, who figures she can read as Mrs. Bernice Wyszynski, who figures she can read as well as anyone else, immediately rushed to Used well as anyone else, immediately rushed to Used Car Dealer Joseph De Gonge in Bristol, Conn., and Car Dealer Joseph De Gonge in Bristol, Conn., and plunked down 25 bananas as down paymentplunked down 25 bananas as down payment. . Aghast, De Gonge demurred. Incensed, Mrs. Aghast, De Gonge demurred. Incensed, Mrs. Wyszynski appealed to the Connecticut State Wyszynski appealed to the Connecticut State Department of Consumer Protection. There followed Department of Consumer Protection. There followed grave official words about such matters as false grave official words about such matters as false advertising. Last week De Gonge compromised and advertising. Last week De Gonge compromised and accepted Mrs. Wyszynski's offer—not for the banana accepted Mrs. Wyszynski's offer—not for the banana car, but for a car, but for a 1962 Pontiac Tempest that otherwise 1962 Pontiac Tempest that otherwise would have cost her $850would have cost her $850. Not surprisingly, the . Not surprisingly, the United Fruit Co. got into the act by supplying Mrs. United Fruit Co. got into the act by supplying Mrs. Wyszynski with 1,370 free bananas (value: $60) to Wyszynski with 1,370 free bananas (value: $60) to complete the deal. De Gonge sent the whole complete the deal. De Gonge sent the whole shipment to a hospital for crippled children. As for shipment to a hospital for crippled children. As for the down payment, his hungry salesmen ate it.the down payment, his hungry salesmen ate it.

CONSUMER COSTSCONSUMER COSTS Gas gouging stations refunding the differenceGas gouging stations refunding the difference

Three stations along US 36 raised prices to $4:09/gallon last Friday Three stations along US 36 raised prices to $4:09/gallon last Friday (avg price $3.44).(avg price $3.44).Attorney General Steve Carter says price was "beyond reasonable Attorney General Steve Carter says price was "beyond reasonable pricing.pricing.“Sandra Chapman/Eyewitness News/Eyewitness News

Danville - Three gas stations in Hendricks County accused of gas Danville - Three gas stations in Hendricks County accused of gas gouging, must now pay back what they took from customers.gouging, must now pay back what they took from customers.

The Indiana Attorney General says the Speedway station at 201 E. The Indiana Attorney General says the Speedway station at 201 E. Main Street in Danville and two Marathon Stations at 605 E. Main Main Street in Danville and two Marathon Stations at 605 E. Main Street and 5201 E. U.S. Highway 36, all upped their prices to $4.09 a Street and 5201 E. U.S. Highway 36, all upped their prices to $4.09 a gallon last Friday. That left drivers paying an extra 70 cents a gallon gallon last Friday. That left drivers paying an extra 70 cents a gallon and fuming at the pumps.and fuming at the pumps.

Indiana's Attorney GeneralIndiana's Attorney General, Steve Carter, isn't buying it , Steve Carter, isn't buying it either. Wednesday he threw down the price gouging flag after angry either. Wednesday he threw down the price gouging flag after angry customers complained. customers complained. The three Hendricks County stations must The three Hendricks County stations must now pay back what they siphoned.now pay back what they siphoned.

"Prices over $4 a gallon - that was clearly beyond the range of "Prices over $4 a gallon - that was clearly beyond the range of reasonable pricing," said Carter.  "If they bought fuel at these reasonable pricing," said Carter.  "If they bought fuel at these stations, they need to take their receipts back into the station and stations, they need to take their receipts back into the station and they'll get a credit for that excessive amount that they paid."they'll get a credit for that excessive amount that they paid."

Regulation of Business:Regulation of Business:C. Protecting WorkersC. Protecting Workers

Child Labor LawsChild Labor Laws Worker’s CompensationWorker’s Compensation Unemployment CompensationUnemployment Compensation

CHILD LABOR LAWS:CHILD LABOR LAWS:Indiana Glass FactoryIndiana Glass Factory

http://images.google.com/imgres?imgurl=http://www.historyplace.com/unitedstates/childlabor/indiana

CHILD LABOR CHILD LABOR LAWSLAWS

D. BUSINESS DEVELOPMENTD. BUSINESS DEVELOPMENTGovernor Announces Two New Companies ‘In-Sourcing’ Jobs Governor Announces Two New Companies ‘In-Sourcing’ Jobs

to Indianato Indiana

INDIANAPOLIS (Sept. 7, 2007) – As Governor Mitch Daniels INDIANAPOLIS (Sept. 7, 2007) – As Governor Mitch Daniels and a delegation of nearly 70 business and and a delegation of nearly 70 business and community community leaders depart for a seven-day trade mission to Japan today, the leaders depart for a seven-day trade mission to Japan today, the Indiana governor announced new results of the state’s increased Indiana governor announced new results of the state’s increased efforts to attract international investment to the Hoosier state.efforts to attract international investment to the Hoosier state.

In the days leading up to the Governor’s third trade mission to Asia in In the days leading up to the Governor’s third trade mission to Asia in three years, two Taiwanese companies announced they have three years, two Taiwanese companies announced they have chosen to locate or expand in Indiana, together creating more than chosen to locate or expand in Indiana, together creating more than 1,700 new jobs.1,700 new jobs.

““We went to Taiwan in 2005 in search of jobs for HoosiersWe went to Taiwan in 2005 in search of jobs for Hoosiers," said ," said Daniels. "The timing of these decisions is coincidental but they do Daniels. "The timing of these decisions is coincidental but they do provide more hard evidence that our international roadwork is a provide more hard evidence that our international roadwork is a good investment of time and well worth the effort.”good investment of time and well worth the effort.”

Taiwan-based FoxConnTaiwan-based FoxConn, a third-party provider of storage and , a third-party provider of storage and assembly services for the computer industry, will make a multi-assembly services for the computer industry, will make a multi-million investment to expand million investment to expand its Plainfield computer assembly its Plainfield computer assembly facility, creating more than 1,400 new jobs.facility, creating more than 1,400 new jobs.

OTHER POWERS OF THE OTHER POWERS OF THE STATESTATE

The EnvironmentThe Environment

Indiana’s Governor endorses better Indiana’s Governor endorses better environmental initiatives. . Addresses environmental concernsAddresses environmental concerns Pollution controlPollution control ConservationConservation

Protecting Life & PropertyProtecting Life & Property

Public Safety is a major concern for is a major concern for the Governor.the Governor. State PoliceState Police Criminal Court SystemsCriminal Court Systems

Mandatory sentencing, house arrest, Mandatory sentencing, house arrest, probation, parole, prison sentence, death probation, parole, prison sentence, death penaltypenalty

Criminal Corrections FacilitiesCriminal Corrections Facilities National GuardNational Guard

Providing for Education, Health, & Providing for Education, Health, & WelfareWelfare

Education, , health, & welfare , & welfare programs combined make up the programs combined make up the largest part of state spending.largest part of state spending. Teacher’s licensing, state standardsTeacher’s licensing, state standards Doctor’s and dentist’s licensingDoctor’s and dentist’s licensing Health departmentsHealth departments Medicare, Medicaid, Headstart, WIC, etc.Medicare, Medicaid, Headstart, WIC, etc.

LOCAL GOVERNMENTLOCAL GOVERNMENT

The local The local governments governments include:include: County County

(largest form)(largest form) TownshipTownship TownsTowns

LOCAL GOVERNMENT LOCAL GOVERNMENT POLICIES:POLICIES:

Education : local taxes go to pay for schools. : local taxes go to pay for schools. Zoning: regulates how land is used.Zoning: regulates how land is used. Police & Fire: public services provided.Police & Fire: public services provided. Water supply: purchase water from Indianapolis. Water supply: purchase water from Indianapolis.

Regulate usage.Regulate usage. Sewage & Sanitation: Responsible for sewage Sewage & Sanitation: Responsible for sewage

disposal.disposal. Transportation: Mass transitTransportation: Mass transit Social Services: Libraries, Senior Services, etc.Social Services: Libraries, Senior Services, etc. Recreation and Cultural Activities: County Fair, Recreation and Cultural Activities: County Fair,

Parks, etc.Parks, etc.

Taxes, taxes, taxes…Taxes, taxes, taxes…

HOW DO WE PAY FOR HOW DO WE PAY FOR ALL OF THESE ALL OF THESE

THINGS?THINGS?

Regressive Taxes

Are the same amount for everyone. Affect poor people with low incomes

more than those with higher incomes, because it represents a higher percentage of a poor person’s income.

Sales TaxSales Tax

Excise Tax

A selective sales tax, because it is a sales tax on select items.

Usually on “luxury” items; gasoline, alcohol, and cigarettes.

Excise Taxes 2005- Fed = 18.4 centsExcise Taxes 2005- Fed = 18.4 cents

Progressive Taxes

The tax gets progressively larger, the more money you make.

It varies with a person’s ability to pay.

Federal Income TaxFederal Income Tax

Other taxes

License fees; Doctors, Lawyers, etc. Vehicle registration and driver’s

licenses. Property tax

Other Sources of Revenue

Bonds Lotteries Intergovernmental Revenue

Savings Bonds

Hoosier Lotto

Intergovernmental Revenue – p.110

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http://www.in.gov/gov/files/http://www.in.gov/gov/files/090707_Governor_Japan_Departure.p090707_Governor_Japan_Departure.pdfdf