2017 Weekly Report from the Capital

2017 WEEKLY REPORT FROM THE CAPITAL
Week 4: February 27-March 3

Sponsored by:

A Healthy Private Sector Ensures

a Healthy Public Sector

Follow The Chamber on Twitter. Tray Abney, the Chamber's Director of Government Relations, will be tweeting from the Legislature. Follow him at @trayabney.

Hammer/Bigger Hammer Approach

We mentioned last week that minimum wage increases have been introduced in both the Assembly ( AB 175--$15/hour) and the Senate ( SB 106--$12/hour).

The Chamber opposes both bills, as we believe that one-size-fits-all mandates like this can be difficult for small businesses, especially if there are no tip credits or fixes to the daily overtime law offered in return.

We also mentioned in our last missive that if a minimum wage bill passes out of the Legislative Building, but is vetoed by Governor Sandoval, the Democratic Leadership might introduce a constitutional amendment on this issue.

Well, we didn't even have to wait for a veto. SJR 6 was introduced by Senate Democratic Leadership on Monday. This Nevada Constitutional Amendment would:

-immediately increase the minimum wage to $9/hour upon enactment

-beginning on January 1, 2022, increase the wage by 75 cents/year until it reaches $12/hour

-eliminate the bifurcated health insurance wage, meaning that there would be one minimum wage in this state, no matter if you offer health insurance to your employees or not

-eliminate the "autopilot" increases that are tied to a CPI formula

-eliminate the exception for collective bargaining agreements

-allows for class action lawsuits from employees

-REQUIRES triple damages if an employee prevails in an unpaid wage case

The final interesting piece of this Amendment is that it specifies that the Legislature is allowed to change the minimum wage by statute. As you know, there are some legal questions surrounding whether or not the Legislature is even legally allowed to increase the wage without amending the Constitution. This would clear that up.

Conventional wisdom tells us that if a minimum wage makes it to the statewide ballot, it would pass by overwhelming numbers. Democrats AND Republicans tend to support pay increases. (The last time an increase was on the ballot, in 2006, it passed by almost 70%).

The Democrats seem to be taking a carrot (work with us during the Session to increase the minimum wage) and stick (force the increase on you via an almost guaranteed approval of a ballot question) approach.

The key piece of this puzzle is that Constitutional Amendments don't have to be approved by the Governor. SJR 6 would have to receive a majority vote in the 2017 Session, and again in the 2019 Session, and then to one vote of the people in 2020.

The upside of this approach is that it would take longer for the wage to reach $12/hour than it would if SB 206 was approved. It would also get rid of the CPI autopilot language and eliminate the labor union exemption.

The downside is that we would still have a minimum wage in the constitution, your $1/hour health insurance credit would go away, and the trial lawyers would have fun with you.

This issue is a big one for the Democrats, so it is not going away.

In related news, click HERE and HERE for two news stories on the rise of kiosks in fast food restaurants.

What Else Happened This Week?

- AB 113 was heard in Assembly Health on Monday. This bill would require employers to provide reasonable break times and a "clean, private place" for employees to express breast milk. Companies with under 50 employees would be exempted if these requirements present a hardship. This bill returns from last Session and was worked on extensively by The Chamber and others. This is the language we agreed upon in 2015 and we testified in support of this bill. There will be language added to address construction site issues and the gas station folks are concerned about their facilities as well. The statute closely mirrors federal law and protects small businesses, which is very important to us. Click HERE to watch the hearing.

- AB 211 was heard in Assembly Commerce on Monday. This bill would allow TRIPLE damages to be awarded to an employee who prevails in an unpaid wages case. The Chamber and other business groups stepped up to oppose the bill because the language, as introduced, doesn't specify that the actions by the employer must be willful. I am pleased to report that we are working with the sponsor, Assemblywoman Jauregui, and she is amending the bill to address our concerns. Click HERE to watch the hearing.

- AB 149 was heard in the same hearing. This bill would codify a recent Nevada Supreme Court decision and would not allow certain non-compete agreements. The Chamber again joined a line of business groups in opposing the bill, due to its strict limitation (3 months) of duration and other issues. There is a working group that will be moving toward solutions. Two other bills have been introduced on this topic, so we assume that something will come out of the Building. Click HERE to watch the hearing.

- SB 99 received no opposition in the Senate Revenue Committee on Tuesday. Current law requires a Nevada taxpayer to pay 100% of the taxes due or agree to a payment plan if you want to appeal your assessment to a judge. SB 99 would allow you to pay 25% up front and ensures that you aren't priced out of the courtroom if you believe that you have been wrongly assessed by your government. The Chamber testified in support of this bill. Click HERE to watch the hearing.

-The Chamber believes that everyone should pay for educating our future workforce, including the buildings that they learn in. That's why we spoke against AB 120, which would allow the imposition of a residential construction tax of $1,600 on every new home constructed in Washoe County. This proposal comes just over three months after Washoe voters voted decisively for WC-1 to increase sales taxes for school construction and revitalization. The Chamber was instrumental in that campaign (half of which was funded by developers). This bill would require new home buyers to pay for new schools and the refurbishment of old schools that were built before they ever arrived. Those same home buyers, after buying a home in a market with rapidly increasing prices, would be paying the full freight on their property taxes, while the rest of us enjoy depreciating home values. The Chamber stated our property tax system must be fixed first before we have any conversation about taxing new home owners for past mistakes. Click HERE to watch the hearing.

Up Next Week...

-AB 43 starts the property tax reform discussion.

-With Republicans in DC threatening to repeal the Affordable Care Act, several bills have been introduced by Democrats in Carson City to enshrine current federal coverage protections in state law, such as pre-existing conditions, coverage of "children" until they are 26, and coverage of contraceptives and various procedures. Some of these bills start to gain steam and receive hearings next week.

Lots of Bills

We are currently tracking 651 bills and Bill Draft Requests (BDR's)

The Chamber's

2017 Legislative Priorities:

Link to The Chamber's 2017 Legislative Priorities Page

Prepared by Tray Abney