On Tuesday, the state of Arizona reached an $85 million settlement with Google over profiting on a deceptive acquisition of users’ location data. It is the most per capita that Google has paid out for this type of lawsuit.
In a press release announcing the settlement, Attorney General Mark Brnovich shared that the legal battle constituted one of the biggest consumer fraud lawsuits in state history.
“When I was elected attorney general, I promised Arizonans I would fight for them and hold everyone, including corporations like Google, accountable,” said Brnovich. “I am proud of this historic settlement that proves no entity, not even big tech companies, is above the law.”
I’m proud to announce our historic $85 million settlement against Google for deceptive and unfair practices used to obtain users’ location data. When I was elected attorney general, I promised Arizonans I would fight for them and hold everyone accountable. https://t.co/fHpN7j8BM5
Brnovich launched a two-year investigation into the Big Tech giant in 2018 after the Associated Press reported that users were misled and deceived about the collection and use of their Android smartphone’s location data — even if the user disabled their location history. The Big Tech giant would collect location data through other phone settings without consent in order to sell ads.
hunting: searching “pumpkin spice latte near me” gathering: picking up said “pumpkin spice latte near me”
Brnovich stressed these facts when he sued Google in 2020. In all, the investigation and litigation took about four years.
“While Google users are led to believe they can opt-out of location tracking, the company exploits other avenues to invade personal privacy,” said Brnovich. “It’s nearly impossible to stop Google from tracking your movements without your knowledge or consent. This is contrary to the Arizona Consumer Fraud Act and even the most innovative companies must operate within the law.”
Over 80 percent of Google’s revenues were generated through advertising.
While Google misled users on how it would collect and profit off of their personal location data, they would purport to err on the side of transparency through initiatives like their “Transparency Report.” The company continues to raise concern about how governments and other corporations engage with individuals’ data.
They also used to publish an annual report, “Android Security Year in Review,” which discussed their efforts to protect Android users’ data. The last report of that kind was issued in March 2019, about 7 months after the AP report.
Google petitioned the courts to seal Brnovich’s complaint and exhibits in the case, prompting widespread backlash from transparency advocates. Some aspects of the documents are unredacted, though the remainder are redacted.
Most of the $85 million will go to the state’s general fund, with $5 million set aside for attorney general education programs.
Joseph Kanefield, Brunn Roysden, and Michael Catlett handled the case for the attorney general’s office. Outside counsel included Kevin Neal and Ken Ralston of Gallagher & Kennedy, and Guy Ruttenberg and Mike Eshaghian of Ruttenberg IP Law.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
Last Thursday, the Arizona Auditor issued a report finding that the state’s Medicaid agency, the Arizona Health Care Cost Containment System (AHCCCS), failed to fulfill four major aspects of its services, including a year delay on average to investigate over half of fraud or abuse incidents.
AHCCCS provides health care coverage to over 2.4 million Arizonans: about 33 percent of the population.
In all, the audit report determined that AHCCCS also failed to: review health plans every three years as required, make correct eligibility determinations, ensure that health plans oversaw providers in two key areas, and establish oversight processes for its Housing Program and Administrator.
In order to remedy these issues, Auditor General Lindsey Perry issued 22 distinct recommendations. AHCCCS agreed to implement all 22 of Perry’s recommendations without contest.
AHCCCS explained that no federal or state regulations mandated the completion of preliminary investigations within 3 months, like Perry recommended, but agreed it was best practice and would adopt that protocol. Likewise, AHCCCS explained it would adopt a self-auditing process to review eligibility determinations, despite there not being any federal or state regulations for such quality assurance reviews.
AHCCCS also noted that its lack of eligibility reviews was due to understaffing caused by the COVID-19 pandemic.
The audit may also result in a change to state law. AHCCCS noted that it wasn’t able to create a monthly report as required by statute. This report — which was to be sent to the governor, the house speaker, and the senate president — was meant to include Title XIX and non-Title XIX categories that outlined the persons served, the units of service, and the amount of funding provided for client services and the amount provided for regional behavioral health authority administration and case management expenses.
In addition to the negative findings of the audit report, AHCCCS is facing a lawsuit filed by several federally-qualified health centers. The community health centers claim that AHCCCS is wrong to deny reimbursements for dentists, podiatrists, optometrists, and chiropractors. Earlier this month, the Ninth Circuit Court of Appeals reversed a decision dismissing the lawsuit.
Arizona Alliance for Community Health Centers sued AHCCCS, joined by Canyonlands Healthcare, Chiricahua Community Health Centers, Desert Senita Community Health Center, Mariposa Community Health Center, Marana Health Center, Mountain Park Health Center, Native Health, North Country Healthcare, Sun Life Family Health Center, Sunset Community Health Center, and United Community Health Center-Maria Auxiliadora.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
Arizona will have just one personal income tax rate of 2.5 percent instead of four rates as of Jan. 1, Gov. Doug Ducey announced last week. That is an effective date one year sooner than was originally expected when the governor signed legislation in 2021 for what was designed as a three-year phase in.
“It’s time to deliver lasting tax relief to Arizona families and small businesses so they can keep more of their hard-earned money,” Ducey wrote to Arizona Department of Revenue Director Robert Woods on Sept. 29. “This tax relief keeps Arizona competitive and preserves our reputation as a jobs magnet and generator of opportunity.”
It is Arizona’s thriving economy and record revenues which allows for full implementation of the flat tax now instead of January 2024, according to Ducey. The Joint Legislative Budget Committee and the Governor’s Office of Strategic Planning and Budgeting jointly informed the governor last week that Arizona’s General Fund revenues, excluding the beginning balance for Fiscal Year 2022, were at $16.7 billion.
This exceeded the statutory economic condition phase-in triggers written into the flat tax law in 2021. In addition, Arizona’s Rainy Day Fund is at its highest level ($1.4 billion) in state history and economists are forecasting Arizona will report at least a $4 billion budget surplus through 2024.
“It’s no secret that Arizona’s economy is booming,” Ducey added in his letter to Woods. “Over the last eight years, we’ve made responsible decisions to live within our means, reduce burdensome government regulations, lower taxes every year and ensure our state remains a great place to live.”
Arizona House Majority Leader Ben Toma was instrumental in getting personal income tax reform passed during the 2021 legislative session to eventually replace the state’s four-rate system of 2.59 to 4.5 percent with the 2.5 percent flat rate.
“I am happy to report that revenue thresholds have been exceeded one full year in advance, enabling the implementation of a single flat rate of 2.5% a year earlier, providing Arizonans with significant economic relief when they need it most,” he said in response to the governor’s announcement.
Several business groups and economic development organizations lauded the news, which will give Arizona the lowest flat tax in the country when it takes effect Jan. 1.
Americans For Prosperity – Arizona:
“This is a historic win for Arizona that couldn’t come at a better time,” said State Director Stephen Shadegg of AFP-Arizona. “Over time, Arizonans will continue to reap the benefits of more tax relief and the state will become even more attractive to businesses and investors, growing the state’s economy while letting hardworking taxpayers keep more of their paychecks.”
Common Sense Institute Arizona, a non-partisan research organization dedicated to the protection and promotion of Arizona’s economy:
Gov. @DougDucey on Day 1 of his campaign promised to reduce the state income tax to as close to zero as possible. Now, 8 years later – and a year ahead of schedule – Arizona will officially have the lowest flat tax in the nation when we ring in 2023. https://t.co/0Ri6vYUhgA
On Wednesday, the Department of Education (ED) announced the distribution of over $20.8 million to increase mental health oversight in Arizona schools.
The funds may be applied to a variety of mental, social, and emotional initiatives within schools. This includes school counseling, mentorships, and bullying and harassment prevention.
During a press call on Wednesday, the ED featured insight from Dr. Marty Pollio, the Jefferson County Public Schools superintendent in Louisville, Kentucky. Pollio said that the SCG funds allowed for three means of school improvement:
Identify students in need and in crisis who need mental health support like counseling;
Reduce the counselor-to-student ratio;
Train teachers on how to identify troubled students and support school personnel.
Pollio suggested that mental health professionals, such as board-certified behavioral analysts, should be deployed to classrooms to identify problematic students.
“Educators have to do more than ever,” said Pollio.
AZ Free News asked the Biden administration whether they would be providing guidelines for behavior analysis enabled by SCG funds, such as what students would be deemed problematic as Pollio suggested. The ED said they weren’t providing guidelines. Rather, the ED said that level of management would be up to the states and districts.
“[The SCG] allows states and districts to tailor their funds to each district and school,” said one of the officials.
The funds come from the Strong Connections Grant (SCG) within the Bipartisan Safer Communities Act (BSCA). Nationwide, grant funds totaled over $971 million.
Today, ED announced nearly $1 billion in Stronger Connections grants through the Bipartisan Safer Communities Act (BSCA) to support students’ physical, emotional, & mental well-being – real benefits for students across the country. https://t.co/WwxaZ4tQGZ
ED Secretary Miguel Cardona asserted that teachers have been handling student behaviors on limited funding and resources, and that students behaved better with reduced disciplinary action and increased promotion of positive behavior. Cardona noted that in all, investments to improve mental health in schools through SCG total $1 billion.
“We must broaden our focus beyond physically safe learning environments,” said Cardona. “If we’re serious about equity and opportunity, we must expand our definitions of learning and growth to include mental and emotional health.”
President Joe Biden’s special assistant for education policy, Maureen Tracey-Mooney, said that the SCG funds are designed for “high impact strategies” that would ultimately impact home life, such as counseling, tutoring, mentoring, and summer learning.
Earlier this month, Cardona sent a letter to the Arizona Department of Education (ADE) notifying them of this recent investment. Cardona’s letter provides educators with suggestions and guidelines on how to implement the SCG funding.
The ADE will decide which school districts will receive the SCG funds and oversee their expenditure. However, the ED retains the authority to audit and investigate schools’ use of the SCG funds.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
On Monday, Arizona Attorney General Mark Brnovich petitioned Congress to reject legislation reducing states’ land-use and energy rights in order to federalize the energy grid.
The letter warned that the legislation would empower private companies to wield the authority of eminent domain against state land, enable the Federal Energy Regulatory Commission (FERC) to construct whenever and wherever it desires regardless of state input, and authorize private companies to pass on the construction costs of new facilities from one state to another.
“These provisions eviscerate state sovereign authority, commandeer companies to carry out the will of a three-vote majority of FERC Commissioners, undermine the power of each citizen’s vote to decide policies at the state level, and inevitably force the citizens of our states to subsidize the costs of expensive and unreliable energy policy preferences of California and New York,” stated the letter.
The letter also noted that Congress was rushing the legislation through without the transparency of committee hearings, markups, or debate.
Brnovich warned in a press release that the proposed legislation, the Energy Independence and Security Act of 2022, would burden Arizonans with other states’ problems.
“The Act is unfair and takes power from states to decide policies for their own people,” said Brnovich. “Arizona and Louisiana should not be forced to pay for California and New York’s expensive energy preferences.”
Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin (D-WV) introduced the legislation under the promise of creating energy independence, citing the ongoing Russian war abroad.
THREAD: If the United States wants to remain the superpower of the world, we must have energy independence. The Energy Independence and Security Act of 2022 will make necessary permitting reforms to ensure we can produce the cleanest possible energy for ourselves & our allies. pic.twitter.com/ehJ045mgSz
Some renewable energy analysts say that the legislation would help fast-track the country’s adoption of “clean” energy.
The Energy Independence and Security Act of 2022 is out! @SenSchumer , @Sen_JoeManchin led. We think it can drive a very large amount of clean energy, because transmission is renewable energy's biggest barrier. Importantly, NEPA is preserved, including public participation.🧵
Brnovich joined a coalition of 18 states led by Louisiana Attorney General Jeff Landry to request the rejection of the legislation: Alabama, Alaska, Arkansas, Georgia, Indiana, Kansas, Kentucky, Mississippi, Missouri, Montana, Nebraska, South Carolina, Tennessee, Texas, Utah, and Virginia.
Louisiana Attorney General Jeff Landry is leading a coalition of 18 states in vocal opposition to the Energy Independence and Security Act of 2022.
