Legislative Updates
Week 15: May 13 - 17
Second Committee Legislative Bill Deadline
Friday, May 17 marked another major bill deadline in the legislative calendar. Bills must have passed out of the second committee in order to proceed through the legislative process. However, bills with a fiscal note were exempt from this deadline. The next major bill deadline is May 24, when bills must pass the second house of the legislature.
Nevada Entertainment and Admissions Tax Proposal
A joint meeting of the Assembly Committee on Taxation and Senate Committee on Revenue and Economic Development heard Assembly Bill (AB) 498. This bill would revise Nevada's Live Entertainment Tax (LET) and would create the Nevada Entertainment and Admissions Tax (NEAT).
As outlined in the bill, live entertainment venues that charge an admissions fee or require customers to purchase a minimum dollar amount of food, alcohol or merchandise for admittance would be subject to an 8 percent tax rate. Venues included in the proposed legislation are theaters, shows, convention centers, exhibitions, trade shows, athletic events and races. In addition, certain private clubs and membership clubs providing recreational or physical fitness may be subject to the proposed admissions tax.
This bill would replace the existing two-tiered structure of the LET. Currently, the LET levies a 5 percent rate on larger venues (7,500 seats or more) and a 10 percent rate on smaller venues (less than 7,500 seats). There are numerous exemptions that exist in the tax code pertaining to the LET.
AB 498 does allow for certain exemptions, such as facilities with a seating capacity of less than 50, certain non-profit organizations as defined by the IRS and political subdivisions of the state. The bill would not include a tax on gratuities or service charges.
Modified Business Tax Increase Proposal
The Senate Democrats released Senate Bill (SB) 514, which would increase the Modified Business Tax (MBT) on certain employers. As proposed, businesses that are currently paying the Modified Business Tax (MBT) would see a tax rate increase from 1.17 percent to 1.5 percent on qualified payrolls of more than $250,000 a year, or $62,500 a quarter. The first $250,000 would remain exempt from the MBT and the proposed tax rate increase.
Mining would experience an MBT rate increase to 2 percent and the current MBT rate on financial services would remain at the same rate of 2 percent. The revenue generated by the tax rate increase would be used towards education spending priorities. The proposed tax rate increase would be set to expire in 2015.
The Metro Chamber will continue to monitor discussions and negotiations on all tax and revenue proposals before the legislature.
Pre-Litigation Discovery
The Assembly Committee on Judiciary heard SB 111. This bill would require a property owner to produce copies of any visual evidence of an alleged incident involving injury or death on the property if requested by a claimant or claimant's attorney. The Metro Chamber testified in strong opposition, claiming that this bill targets the business community and will result in burdening businesses and property owners with requests for this type of evidence, and could also potentially result in more litigation.
Protecting Small Businesses
The Assembly Government Affairs Committee heard SB 404, which aims to protect Nevada’s floral shops from the deceptive trade practices of out-of-state vendors that gather orders from customers without disclosing their location. The Metro Chamber testified in support of the bill because it will protect Nevada’s small businesses.
Week 14: May 6 - 10
Strengthening Business Impact Statements
The Assembly Committee on Ways and Means heard Assembly Bill (AB) 408. The bill attempts to strengthen the process for state and local entities to complete business impact statements when considering adoption of a proposed rule or regulation. Under the proposed legislation, a state agency must make a concerted effort to determine the impact of the proposed regulation. If the information is deemed inaccurate or incomplete, the Legislative Commission or the Subcommittee can reject a regulation on the basis it did not adequately consider or underestimate the economic effect of the regulation on small businesses. The Metro Chamber testified in support of the bill because it provides transparency and sound policy for unintended consequences to small businesses from business regulations.
Nevada Admissions and Entertainment Tax Proposal
Assembly Speaker Marilyn Kirkpatrick released Assembly Bill 498, which revises Nevada's Live Entertainment Tax (LET) and creates the Nevada Entertainment and Admissions Tax (NEAT).
As outlined in the bill, live entertainment venues which charge an admissions fee or require customers to purchase a minimum dollar amount of food, alcohol or merchandise for admittance would be subject to an 8% tax rate. Venues included in the proposed legislation are theaters, shows, convention centers, exhibitions, trade shows, athletic events, and races. In addition, certain private clubs and membership clubs providing recreational or physical fitness may be subject to the proposed admissions tax.
This bill would replace the existing two-tiered structure of the LET. Currently, the LET levies a 5% rate on larger venues (7,500 seats or more) and a 10% rate on smaller venues (less than 7,500 seats). There are numerous exemptions that exist in the tax code pertaining to the LET.
AB 498 does allow for certain exemptions such as facilities with a seating capacity of less than 50, certain non-profit organizations as defined by the IRS and political subdivisions of the state. The bill would not include a tax on gratuities or service charges.
A Joint Meeting of the Assembly Committee on Taxation and Senate Committee on Revenue and Economic Development will hear AB 498 on Tuesday, May 14, at 1 p.m.
To access a copy of the proposed legislation, please click here.
Mining Tax Proposal
Senate Minority Leader Michael Roberson released his mining tax proposal entitled the “Education Priority Initiative,” to serve as a competing measure on the ballot to the Teachers’ Union’s Margin Tax Initiative. The proposal is slated to generate additional funding for the state and it would be used to only fund education, specifically to: (1) reduce class sizes; (2) develop English Language Learner (ELL) programs; and (3) establish an education stabilization fund.
Components of the mining tax proposal include a new excise tax of 10% upon the net proceeds of gold and silver mining (only if the net proceeds in a calendar year exceed $400,000). The revenue generated will be deposited in the State Distributive School Account and Trust Fund to Stabilize the Funding of Education in the State General Fund and will be used solely to fund K-12 public education. The proposal would temporarily increase the Modified Business Tax (MBT) imposed on financial institutions from 2% to 2.5%. It would also provide that local governments maintain the current rate of amounts appropriated through the revenue generated from the tax.
The proposal is contingent on the passage of Senate Joint Resolution (SJR) 15, which proposes to amend the Nevada Constitution to repeal the 5% cap on the collection of net proceeds on mines. SJR 15 passed the state legislature in 2011, and if passes a second time this session in 2013, will be sent to the November 2014 general election ballot for a vote of the people.
The Metro Chamber will continue to monitor discussions and negotiations on all tax and revenue proposals before the legislature.
The Republican Assembly Caucus invited legislators and the public to a town hall meeting entitled the “Making Public Dollars Go Further.” At the town hall meeting, Republican Assembly leadership advocated that several public policy issues need to be addressed this legislative session for the betterment of the state. These issues include the unfunded liability within the Public Employees’ Retirement System, providing scholarship opportunities for low-income students and reforming how the state’s prevailing wage rate is calculated.
Week 13: April 29 - May 3
Economic Forum
The Economic Forum met on Wednesday, May 1, and released their budget and fiscal projections for the upcoming biennium. The Forum predicted that Nevada's current tax structure will produce $5.85 billion in the next two years, which is slightly under the Governor's proposed budget of $6.54 billion. However, the Forum's projections do not include the nearly $600 million in sunset taxes due to expire before the next two-year budget cycle. The Forum also projected that Nevada will have almost $44 million more to spend than it projected during their November 2012 meeting, which includes $36 million from the 2014-15 biennium, and $7.7 million expected to be left over from 2013.
Redevelopment Agencies
The Senate Committee on Government Affairs heard Assembly Bill (AB) 50, which was supported by the City of Las Vegas. The bill would assist in growing the business base and attracting private capital investment to the City of Las Vegas. During the hearing, representatives from the City of Las Vegas testified that they have promoted these efforts by using: (1) pay as you go funding; (2) buying land and having an extensive land acquisition program; (3) tax increment financing; and (4) bonding authority. The Metro Chamber testified in support of this measure, as it would promote economic growth and development.
Charter Schools Accountability
AB 205 was heard in the Senate Committee on Education. This bill requires the sponsor of a charter school to develop a written performance framework for the charter school, includes performance indicators, measures and metrics, among other indicators, for the academic achievement and proficiency of pupils enrolled in the charter school, the attendance rate of pupils enrolled and the financial condition and sustainability of the charter school. The Metro Chamber testified in support of the bill, stating it will strengthen accountability and performance measures associated with charter schools.
Collateral Source and Joint Liability
AB 240 was heard in the Senate Committee on Judiciary. AB 240 revises provisions relating to civil actions. Specifically, this bill clarifies that where recovery is allowed against more than one defendant, the defendants are joint and severally liable unless the judge or jury finds comparative negligence on the part of the plaintiff. The Metro Chamber testified in opposition to AB 240, stating that it would open the door to more expensive litigation.
Official Public Meetings Website
The Senate Committee on Government Affairs heard AB 445, which requires the Nevada Department of Administration to establish and maintain an official website for the posting of notices for public meetings. This bill will strengthen the Nevada Open Meeting Law and increase transparency. The Metro Chamber testified in support of this bill because it will give the public greater access to their government.
Upper Las Vegas Wash National Park Designation
The Senate Committee on Natural Resources heard Assembly Joint Resolution (AJR) 1. This resolution urges legislative support for the Upper Las Vegas Wash, also commonly referred to as Tule Springs or the Southern Nevada Ice Age Park, to be designated as a national park by the federal government. The Metro Chamber testified in support of this measure because it is an opportunity for increased tourism and economic development. This resolution also aligns with the Metro Chamber's federal agenda for national designation.
Master Plans
The Assembly Committee on Government Affairs heard Senate Bill (SB) 55, which relates to master plans. This bill, brought on behalf of the City of Las Vegas, reorganizes the current 19 separate plans and other items that may be included in a master plan within Clark County. It reorganizes them into eight different elements that may compromise a master plan, including a historical, conservation, housing or safety element, among others. The Metro Chamber testified in support of the bill as an effort to simplify the process and make the master planning process more efficient.
Higher Education Mentoring Program
The Assembly Committee on Education heard SB 309, which would urge the Nevada System of Higher Education, small businesses and organizations such as chambers of commerce to establish a business mentorship program for emerging entrepreneurs. The Metro Chamber supports this bill because it supports the state's economic development efforts to support entrepreneurs and to help diversify the state's economy.
Revising Nevada Department of Transportation Board of Directors
The Senate Committee on Finance heard SB 322, which would revise the provisions pertaining to the composition of the Board of Directors for the Nevada Department of Transportation. As proposed, SB 322 would expand the board to eleven individuals, who would be appointed by the Governor. The elected state officials who serve on the board would be replaced by residents from the different counties. The Metro Chamber supports a board that is based on population, as well as increased investment in infrastructure.
Science, Technology, Engineering and Mathematics (STEM)
The Assembly Committee on Education heard SB 345. This bill creates the Advisory Council on Science, Technology, Engineering and Mathematics and enumerates certain duties of the Council. The Metro Chamber expressed its support for SB 345 because it serves the students who will become the employees and entrepreneurs in the types of industries Nevada is trying to encourage, build and attract as it grows and diversifies its economy. The Metro Chamber communicated the significance of Nevada being able to offer well-educated personnel to fill the roles this new emerging economy requires.
Silver State Health Insurance Exchange Board
The Assembly Committee on Commerce and Labor heard SB 352. This bill would add two additional voting members, appointed by the Governor, to the Board of Directors for the Silver State Health Insurance Exchange. The bill also removes the prohibition that members of the Board cannot be associated with the insurance industry. The Metro Chamber testified in support of the bill, stating that the addition of two members from the insurance industry will allow for additional expertise and experience, as well as additional safeguards and consumer protections moving forward in the implementation of the day-to-day transactions of the Exchange. It will also allow for additional relationships to help the Exchange to grow more rapidly in the future.
Silver State Health Insurance Exchange Marketing Initiatives
The Assembly Committee on Commerce and Labor heard SB 359, which revises the duties of the Silver State Health Insurance Exchange. This bill serves to clarify that the Silver State Health Insurance Exchange’s primary marketing focus for its qualified health plans be directed to those that are not insured, underinsured or to those employers that do not provide or offer health insurance to their employees. The Metro Chamber testified in support of SB 359, emphasizing that this clarification will allow the Exchange to do its job, while reassuring businesses, employers and health insurance providers that their insured will not be impacted by the implementation of the Exchange.
Week 12: April 22 - 26
House Passage Deadline
Tuesday, April 23, marked the deadline for bills to pass out of the house of origin. As a result, many bills were passed, discontinued for failing to make the deadline, or referred to the Senate Finance or Assembly Ways and Means committees to deal with the fiscal notes and financial implications of the legislation. The next major deadline falls on May 17, when bills must pass out of the second committee in order to proceed through the legislative process. Mining Tax Plan
Senate Minority Leader Michael Roberson, along with five of his Republican colleagues, proposed a mining tax plan to serve as a competing ballot initiative to the Margin Tax Initiative Petition, which will appear on the ballot in the 2014 General Election. The plan, referred to as the “Education Priority Initiative,” is slated to generate more than $600 million per biennium to be solely used to fund education, specifically to: (1) reduce class sizes; (2) develop English Language Learner (ELL) programs; and (3) establish an education stabilization fund.
The mining tax plan sets a ten percent tax on gold and silver mining revenue, while exempting those mining companies that yield less than $4 million in gross revenue. The legislature must send the proposed initiative to the ballot in order for it to be considered as a competing measure to the Margin Tax Initiative Petition, which would impose a two percent margin tax on all businesses grossing over $1 million in revenue, regardless if they make a profit or not. The Metro Chamber will continue to monitor discussions and negotiations on all tax and revenue proposals before the legislature to ensure that businesses are not adversely impacted. Marketplace Fairness Act
Senate Joint Resolution (SJR) 5 was heard in Assembly Committee on Legislative Operations and Elections. SJR 5 urges Nevada’s Congressional delegation to reintroduce and pass the Marketplace Fairness Act, as the increase in internet commerce is eroding the state’s tax base. This resolution would even the playing field for brick and mortar businesses and internet business. The Metro Chamber testified in support of the resolution, as it did on the Senate side, emphasizing that it is working with Nevada’s Congressional delegation to support this legislation at the federal level, and believes it would help level the playing field for Nevada.
Week 11: April 15 - 19
Legislative Bill Deadlines
Friday, April 12, marked a major legislative bill deadline. All non-exempt bills were required to pass their committee of origin by the end of the day. However, bills with a fiscal note were exempt from this deadline. Typically, bills that do not pass out of their first committee of origin will see no further action during the legislative session.
Tuesday, April 23, marked the deadline for bills to pass out of the full house of origin. This week has centered around long Senate and Assembly Floor sessions to pass bills out of each house. There have been very few committee hearings. The Metro Chamber continues to monitor and take action on bills impacting the business community.
Week 10: April 8 - 12
Silver State Health Insurance Exchange Board
The Senate Committee on Commerce, Labor and Energy heard Senate Bill (SB) 352. This bill would add two additional voting members, appointed by the Governor, to the Board of Directors for the Silver State Health Insurance Exchange. The bill also removes the prohibition that members of the Board cannot be associated with the insurance industry. The Metro Chamber testified in support of the bill, stating that the addition of two members from the insurance industry will allow for additional expertise and experience, as well as additional safeguards and consumer protections moving forward in the implementation of the day-to-day transactions of the Exchange. It will also allow for additional relationships to help the Exchange to grow more rapidly in the future. Silver State Health Insurance Exchange Marketing Initiatives
The Senate Committee on Commerce, Labor and Energy heard SB 359, which revises the duties of the Silver State Health Insurance Exchange. This bill serves to clarify that the Silver State Health Insurance Exchange’s primary marketing focus for its qualified health plans be directed to those that are not insured, underinsured or to those employers that do not provide or offer health insurance to their employees. The Metro Chamber testified in support of SB 359, emphasizing that this clarification will allow the Exchange to do its job, while reassuring businesses, employers and health insurance providers that their insured will not be impacted by the implementation of the Exchange. Reduction of Licensed Educational Personnel
SB 193 was heard in the Senate Committee on Education. This bill revises provisions governing reductions in the workforce of school districts. The measure would require that the board of trustees of a school district, upon making a decision to reduce or layoff existing workforce of a teacher or administrator, consider the performance evaluations of the licensed personnel in addition to other factors also required to be considered under existing law. The Metro Chamber testified in support of the bill. The Metro Chamber emphasized the fact that studies show that teacher quality is an extremely important factor in student achievement and therefore should be considered. Empowerment Schools
The Senate Committee on Education heard SB 311. This bill primarily addresses the process to be followed by the board of trustees of each school district when converting underperforming schools into empowerment schools. Empowerment schools generally operate with more freedom and flexibility than other public schools. Under this measure, the board of trustees in each qualifying district is required to identify the schools eligible for conversion from those schools deemed to be underperforming by the Nevada Department of Education. The Metro Chamber expressed its support for this measure because it believes that empowerment schools offer an excellent option for parental involvement in their children’s education, and that SB 311 provides parents with children in a failing school an effective option to reorganize schools through greater parent involvement. Science, Technology, Engineering and Mathematics (STEM)
The Senate Committee on Education heard SB 345. This bill creates the Advisory Council on Science, Technology, Engineering and Mathematics and enumerates certain duties of the Council. The Metro Chamber expressed its support for SB 345 because it serves the students who will become the employees and entrepreneurs in the types of industries Nevada is trying to encourage, build and attract as it grows and diversifies its economy. The Metro Chamber communicated the significance of Nevada being able to offer well-educated personnel to fill the roles this new emerging economy requires. School Vouchers
The Senate Committee on Education heard Senate Joint Resolution (SJR) 10. This bill would amend Section 10 of Article 11 of the Nevada Constitution to permit use of money, if made available by the Legislature for the education of a child in grades K-12, to be used for school vouchers. The Metro Chamber testified in support of this bill because the key to improving Nevada students’ education is to provide the best options possible for children. Additionally, this resolution would broaden the learning options available for a wider variety of Nevadans. Estimation of Towns, Townships, Cities and Counties
The Senate Committee on Revenue and Economic Development referred and passed SB 50 to the Senate Finance Committee. This bill aims to make the population estimate process for towns, townships, cities and counties in the State of Nevada more consistent and transparent. Currently, the annual population estimate process is cumbersome and wasteful of staff resources for all jurisdictions due to the lack of specificity. The Metro Chamber testified in support of the bill because it provides improved direction and guidance for everyone involved in the population estimation process. Fire Chief Appointment
Assembly Bill (AB) 420 was heard in Assembly Committee on Government Affairs. This bill revises provisions of appointment, supervision and removal of the City of Las Vegas and the City of North Las Vegas fire chiefs. Specifically, this bill requires that the appointment, supervision and removal of each city’s fire chief be transferred from the city manager to the city council of each city. The Metro Chamber testified in strong opposition to the bill because the management of the day-to-day operations of a city should remain under the control of the city manager and not the city council, which should remain the policy making body for the city. Strengthening Business Impact Statements
The Assembly Committee on Government Affairs passed AB 408 from committee. As previously reported, this bill attempts to strengthen the reporting of business impact statements from state and local entities. The Metro Chamber testified in support of the bill because it provides transparency and protection for small businesses due to insufficiently considered business regulations from state and local entities. Nonprofit Healthcare Corporations
The Assembly Committee on Health and Human Services heard AB 484, which would allow Clark County to create a nonprofit healthcare corporation to run public hospitals and provide public health services, specifically University Medical Center (UMC) in Las Vegas. The Metro Chamber testified in support of the bill because this new corporation will allow for more expertise and control over the operations of UMC by qualified individuals. Fuel Tax
Assembly Bill 413 passed the Assembly Committee on Taxation. This bill revises provisions relating to taxation, specifically fuel tax indexing. As previously reported, the Metro Chamber testified in support of this measure highlighting that AB 413 will be a great opportunity for improving infrastructure in Southern Nevada. Official Public Meetings Website
The Assembly Committee on Legislative Operations and Elections heard AB 445, which requires the Nevada Department of Administration to establish and maintain an official website for the posting of notices for public meetings. This bill will strengthen the Nevada Open Meeting Law and increase transparency. The Metro Chamber testified in support of this bill because it will give the public greater access to their government. AB 445 was passed out of committee and will now go before the full Assembly for consideration.
Week 9: April 1 - 5
Higher Education Mentoring ProgramSB 309 would urge the Nevada System of Higher Education, small businesses and organizations such as chambers of commerce to establish a business mentorship program for emerging entrepreneurs. The Metro Chamber supports this bill because it supports the state's economic development efforts to support entrepreneurs and to help diversify the state's economy.
Revising Nevada Department of Transportation Board of Directors
SB 322 would revised the provisions pertaining to the composition of the Board of Directors for the Nevada Department of Transportation. As proposed, SB 322 would expand the board to eleven individuals, who would be appointed by the Governor. The elected state officials who serve on the board would be replaced by residents from the different counties. The Metro Chamber supports a board that is based on population, as well as increased investment in infrastructure.
Strengthening Nevada’s Community Colleges
Senate Bill (SB) 391 was heard in the Senate Education Committee. This bill would help Nevada catch up to the national trend by transferring administration of Nevada’s community colleges from the Nevada System of Higher Education—which currently oversees three levels of higher education—to the Nevada Department of Education. The Metro Chamber testified in support of this bill because it will allow our community colleges to be more flexible and responsive to the needs of their communities. Revising the community college governance will also give Nevada more of an opportunity to increase its eligibility for federal grant dollars. The Metro Chamber also emphasized that these types of education reform measures must be considered. These initiatives are part of the Metro Chamber’s education reform priorities.
Strengthening Business Impact Statements
The Assembly Committee on Government Affairs heard Assembly Bill (AB) 408, which attempts to strengthen the process for state and local entities to complete business impact statements when considering adoption of a proposed rule or regulation. Under the proposed legislation, a state agency must make a concerted effort to determine the impact of the proposed regulation. If the information is deemed inaccurate or incomplete, the Legislative Commission or the Subcommittee can reject a regulation on the basis it did not adequately consider or underestimate the economic effect of the regulation on small businesses. The Metro Chamber testified in support of the bill because it provides transparency and sound policy for unintended consequences to small businesses from business regulations.
Oversight of the Southern Nevada Water Authority
The Senate Government Affairs Committee heard SB 232, which gives the Public Utilities Commission authority to regulate the Southern Nevada Water Authority as it does other public utilities. This bill will ensure a more open and transparent decision-making process for major projects and rate increases. The Metro Chamber testified in strong support of this bill because it is important that each class of rate payers knows what to expect on their bill, and that businesses and residences alike pay an equal and fair rate.
English Language Learner Reform
Senate Bills 504, 291, and 455, which address funding and programs for English Language Learner (ELL), were heard in the Senate Education Committee. These bills continue to develop and implement a plan for ELL in the state of Nevada. The Metro Chamber testified in support of these bills because they will enhance education in Clark County and throughout the state of Nevada. The implementation of ELL programs and funding are part of the Metro Chamber’s education reform priorities.
Protecting Small Businesses
The Senate Government Affairs Committee heard SB 404, which aims to protect Nevada’s floral shops from the deceptive trade practices of out-of-state vendors that gather orders from customers without disclosing their location. The Metro Chamber testified in support of the bill because it will protect Nevada’s small businesses.
School Bus Purchasing
The Senate Finance Committee heard SB 350, which aims to expand the lists of capital expenditures that can be funded through general obligation funding to include installment-purchase agreements or lease-purchase agreements, which will be used to purchase school buses. Currently, the state does not allow school districts to utilize funds to buy school buses. School districts often have to come to the Legislature to ask for a waiver to buy a school bus. This bill would eliminate the need to keep coming back to the Legislature for such a purchase. The Metro Chamber testified in support of the bill, stating that anything that authorized this creative thinking to a problem should be considered.
Week 8: March 25 - 29
Tort Damages
The Senate Judiciary Committee heard Senate Bill (SB) 296. This bill limits the amount of damages a claimant may recover in a civil action arising from a motor vehicle accident if that person does not have insurance at the time of the accident. The Metro Chamber testified in support of the bill, stating that it will limit the amount of recovery from litigation and the potential cost burden to businesses as a result.
Outdoor Recreation
The Senate Natural Resources Committee heard Senate Joint Resolution (SJR) 9, which urges the Director of the Bureau of Land Management to expedite the process for approving special recreation permits for certain uses of federal public lands in Nevada. The Metro Chamber also testified in support of this resolution, emphasizing that outdoor recreation provides for additional jobs in Nevada, increases tourism and generates more revenue for the state. The resolution was passed out of the committee the same day as the hearing.
Charter Schools
Assembly Bill (AB) 205 was heard in the Assembly Education Committee. This bill requires the sponsor of a charter school to develop a written performance framework for the charter school, which includes performance indicators, measures and metrics, among other indicators, for the academic achievement and proficiency of pupils enrolled in the charter school, the attendance rate of pupils enrolled and the financial condition and sustainability of the charter school. The Metro Chamber testified in support of the bill stating it will strengthen accountability and performance measures associated with charter schools. These initiatives are part of the Metro Chamber’s education reform priorities.
Prevailing Wage
AB 318 was heard in the Assembly Government Affairs Committee. This bill revises provisions relating to the payment of overtime compensation and prevailing wages. Specifically, the bill eliminates the requirement that overtime be paid for any shift over 8 hours so long as the workers do not work more than 40 hours a week and changes the threshold for prevailing wage projects from $100,000 to $1.5 million. The Metro Chamber testified in support of this measure, as it will assist with job creation and will help Nevada become more competitive in attracting new businesses. During the hearing, the Metro Chamber also stated that legislators need to examine the existing prevailing wage structure and how it is calculated. Prevailing wage reform is a long-standing policy priority for the Metro Chamber.
Week 7: March 18 - 22
More Access and Flexibility for Charter Schools
The Senate Committee on Education heard Senate Bill (SB) 59, which eliminates a restriction on times during which a charter school may use buildings owned by a school district. Under the proposed legislation, a charter school may, at any time and upon approval of the board of trustees in that district, use any public facility located within the school district in which the charter school is located. The Metro Chamber testified in support of the bill because it will allow school boards greater flexibility and will provide more access to charter schools. These initiatives are part of the Metro Chamber’s education reform priorities.
The Creation of Marketing and Recruiting Board
The Senate Committee on Revenue and Economic Development heard SB 209, which would require the Board of Economic Development to develop and carry out a recruiting and marketing effort to attract professionals and businesses to Nevada. The sponsor of the bill stated that the proposed legislation will help the Board recruit businesses to Nevada. There was no testimony in opposition to the legislation, and supporters of the bill expressed an eagerness for recruitment opportunities. The Metro Chamber testified in support of the bill because it included working professionals and would help grow economic development opportunities in Nevada.
Collateral Source and Joint Liability
Assembly Bill (AB) 219 was heard in the Assembly Judiciary Committee. AB 219 revises provisions governing the award of damages to persons who suffer personal injury. This bill codifies a long-standing common law rule called the collateral source rule. Based on this rule, if you cause harm to someone you are responsible for all the damage to that individual, regardless of insurance coverage for the injured party. The Metro Chamber testified that the common law rule is already in practice, so this legislation is unnecessary. The Metro Chamber additionally emphasized that this bill could artificially inflate judgments and cause businesses to incur higher premiums and increase litigation due to the higher recovery options.
A similar bill was also heard in Assembly Judiciary. AB 240 revises provisions relating to civil actions. Specifically, this bill clarifies that where recovery is allowed against more than one defendant, the defendants are joint and severally liable unless the judge or jury finds comparative negligence on the part of the plaintiff. The Metro Chamber also testified in opposition to AB 240, stating that it would open the door to more expensive litigation.
Southern Nevada Fuel Tax Indexing
The Assembly Committee on Taxation heard AB 413 presented by the American Council of Engineering Companies Nevada and the Nevada Economic Development Coalition. AB 413 revises provisions relating to taxation, specifically fuel tax indexing. Sponsors of the bill described the proposed legislation as enabling legislation for what has already been approved in three other counties in Nevada. Proponents explained the bill would enable Clark County to utilize a fuel tax that is measured by inflation and costs. The Metro Chamber testified in support of the bill by highlighting that AB 413 will be a great opportunity for improving infrastructure in Southern Nevada.
Week 6: March 11 - 15
Master PlansThe Senate Committee on Government Affairs heard Senate Bill (SB) 55, which relates to master plans. This bill, brought on behalf of the City of Las Vegas, reorganizes the current 19 separate plans and other items that may be included in a master plan within Clark County. It reorganizes them into eight different elements that may compromise a master plan, including a historical, conservation, housing or safety element, among others. The Metro Chamber testified in support of the bill as an effort to simplify the process and make the master planning process more efficient.
Pre-Litigation Discovery Update
The Metro Chamber continued to negotiate with the sponsor legislator and various stakeholders relating to SB 111. This bill would require a property owner to produce copies of any visual evidence of an alleged incident involving injury or death on the property if requested by a claimant or claimant’s attorney. As this would burden small businesses and potentially result in increased litigation, the Metro Chamber continues work to defeat this legislation.
Week 5: March 4 - 8
Margin Tax Initiative (Initiative Petition 1)
A joint session of the Senate Committee on Revenue and Economic Development and the Assembly Committee on Taxation heard Initiative Petition (IP) 1. IP 1 would impose a 2% margin tax on all Nevada business with annual revenues--regardless of profit--of more than $1 million. During the hearing, many business representatives testified in opposition to IP 1, including the Las Vegas Metro Chamber of Commerce, which emphasized this is not the right solution for Nevada. The Metro Chamber cited concerns at the hearing that the margin tax is confusing and complicated. The Metro Chamber also stated IP 1 will impose a tax on a busienss, even if there is no profit. It will also cost jobs and impede business growth. The margin tax has not worked in Texas, nor has it raised ther evenue promised.
As part of the initiative petition process, the legislature has 40 days to pass it, as written in its entirety, or it automatically goes on the November 2014 ballot. If the legislature wished to develop its own competing proposal, they have until the last day of session to pass a measure for it to be placed on the November 2014 ballot.
Mining Tax Proposal
Senate Republican Minority Leader Michael Roberson, announced a proposal to remove mining's tax protections from the state constitution through Senate Joint Resolution (SJR) 15, which requires two votes by the legislature before it can go on the ballot. SJR 15 passed the 2011 legislature, and requires passage in the 2013 session to move forward. Additionally, the proposal includes support for a ballot measure to raise Nevada's mining tax, which would serve as an alternative ballot measure to the margin tax. The Assembly Republican Caucus released a statement stating its opposition to this proposal, and held a separate press conference to discuss its priorities during the 2013 session.
During the press conference, the Assembly Republicans emphasized the need for support for various education concepts including "Read by Three" (i.e. ending social promotion), All Day Kindergarten, and English Language Learner (ELL) funding. Additionally, they discussed potential reforms to the Public Employees' Retirement System (PERS) and prevailing wage.
Strict Liability for Providers for Prescription Drug Addiction
Senate Bill (SB) 75 was heard in the Senate Committee on Judiciary. This bill would give an individual who suffers injuries resulting from an addiction to a prescription drug the ability to bring a civil action against both the manufacturer of the prescription drug and the provider of medical care who prescribed the prescription drug, if the provider could have reasonably known that the individual had an addiction. The Metro Chamber testified in strong opposition to the bill, stating that the problem this bill seeks to address can be resolved through existing mechanisms and that this bill will not prevent addictions to prescription drugs. Furthermore, creating a private right of action which will result in litigation sends a negative message to those businesses Nevada is trying to attract.
Pre-Litigation Discovery
The Senate Committee on Judiciary heard SB 111. This bill would require a property owner to produce copies of any visual evidence of an alleged incident involving injury or death on the property if requested by a claimant or claimant's attorney. The Metro Chamber testified in strong opposition, claiming that this bill targets the business community and will result in burdening businesses and property owners with requests for this type of evidence, and could also potentially result in more litigation.
Week 4: February 25 - March 1
Efforts to Collect Debt Owed to the State
The Senate Committee on Government Affairs heard Senate Bill (SB) 21, which would restrict persons from obtaining a license or renewal from certain agencies in instances where an individual owes a debt to the State. While many agencies and entities expressed concern to the bill as initially written, the sponsor of the legislation offered many amendments to address these concerns. The Metro Chamber specifically supported the amendment that exempts the business licensing department of the City of Las Vegas from being included in the bill, stating it did not want to inhibit the ability of the City to effectively and efficiently issue business licenses.
Protecting Corporations that Seek Benefit
The Assembly Committee on Judiciary heard Assembly Bill (AB) 89, which authorizes the formation of benefit corporations. Under the proposed legislation, the current corporate tax structure will remain the same while protecting the social and environmental aspect as well as corporate directors. Supporters of the bill testified that the proposed legislation will allow corporations to measure what they are doing for the community. The Metro Chamber testified in support of the bill, emphasizing it would be a good policy direction for Nevada.
Acupuncture Health Benefits Mandate
SB 156 was heard in the Senate Commerce and Labor Committee. The bill would require health insurance policies and health care plans to provide coverage for acupuncture treatments. Supporters of the bill argued that acupuncture is a recognized and cost effective form of medical treatment. However, members of the business community testified in opposition to the bill, stating it will increase costs for businesses and negatively impact small businesses that cannot afford to provide health insurance. The Metro Chamber is opposed to this bill.
Redevelopment Agencies
The Assembly Committee on Government Affairs heard AB 50, which was supported by the City of Las Vegas. The bill would assist in growing the business base and attracting private capital investment to the City of Las Vegas. During the hearing, representatives from the City of Las Vegas testified that they have promoted these efforts by using: (1) pay as you go funding; (2) buying land and having an extensive land acquisition program; (3) tax increment financing; and (4) bonding authority. Committee members discussed the need to balance between assisting business and protecting the taxpayer. The Metro Chamber testified in support of this measure, as it would promote economic growth and development.
Expanding the Nevada Open Meeting Law
The Assembly Legislative Operations and Elections Committee heard AB 118. This law would expand the scope of the Nevada Open Meeting Law to include official legislative meetings during the interim period between the legislative sessions. Open meeting laws provide the public the opportunity to have a greater understanding of the policy discussions and actions taken by elected officials. The Metro Chamber testified in support of this bill because it would further increase the public's access to the governmental process.
Marketplace Fairness Act
Senate Joint Resolution (SJR) 5 was presented in the Senate Committee on Legislative Operations and Elections. SJR 5 urges Nevada’s Congressional delegation to reintroduce and pass the Marketplace Fairness Act, as the increase in Internet commerce is eroding the state’s tax base. This would even the playing field for brick and mortar businesses and Internet business. The Metro Chamber testified in support of the resolution, emphasizing it is working with Nevada’s Congressional delegation in support of this legislation at the federal level. The Metro Chamber believes it would help level the playing field for Nevada.
Week 3: February 18 - 22
Nevada State Senate Democratic Job ProposalsThe Senate Democratic Caucus held a press conference to unveil two legislative proposals aimed at enhancing job creation in Nevada. Senate Bill (SB) 165, would provide a transferable tax credit to film companies that film at least 60% of the production within the state of Nevada. Additionally, SB 172 would provide employers a tax break on their Modified Business Tax (i.e. payroll tax) for hiring employees that have been unemployed for more than six months. The Metro Chamber testified in support of both of these measures, as they foster economic growth, development and the creation of new jobs in Nevada, which would help many businesses. However, the Metro Chamber cited that budgetary constraints will need to be addressed during the legislative process.
Internet Gaming
The State Senate and Assembly both passed Assembly Bill (AB) 114, which was also signed by the Governor. This legislation authorizes Internet gaming in Nevada. This legislation allows Nevada to enter into compacts and agreements with other states to offer online poker, which enables Nevada to remain as the leader in gaming. Business Portal
The Assembly Committee on Government Affairs heard AB 139. The bill is strongly supported by the Speaker of the Assembly, Marilyn Kirkpatrick. The measure attempts to streamline state business licensing and local business licensing into one process. There are numerous challenges to integrating all state entities into one business portal, and local governments have their own streamlined process. The Metro Chamber testified in support of the bill because it will make the licensing process more efficient and easier for businesses regardless of their size.
Overtime for IT Employees
The Assembly Committee on Commerce and Labor heard AB 63, which is sponsored by the Governor's Office of Economic Development. This bill would allow employees in the computer and Internet technology fields to be exempted from being compensated for overtime wages. This exemption of these positions would allow Nevada to be in a more favorable and competitive position in relation to other states in encouraging these types of employees to relocate or move to Nevada. The Chamber testified in support of this measure, as it promotes economic development and allows for more high-paying professional technology jobs.
Minimum Wage
Senate Joint Resolution (SJR) 2 was heard in the Senate Committee on Legislative Operations and Elections. The proposed resolution would amend the Nevada Constitution to eliminate the requirement that an employer pay an additional dollar on top of the state's minimum wage, which is already higher than the national minimum wage, if the employer does not provide health care benefits to the employee. The Metro Chamber testified in support of the measure because it is a jobs bill that is directly related to employment, as the one dollar penalty is a disincentive to hiring. If passed by the Legislature, this resolution would have to be approved by Nevada’s voters on two consecutive general election ballots in order to amend the state’s constitution. Local Government Consolidated Tax
AB 68, the local government consolidated tax (“CTAX”) bill passed the full Assembly by a vote of 39 to 0. The bill resulted from the Interim Legislative Committee to study the Funding of the Local Government Distribution Account. AB 68 is a measure designed to more fairly allocate the taxes among all local government entities in the 17 counties of Nevada. Because much preliminary work had been done to get all stakeholders to agreement during the Interim Committee, the Assembly was able to fast-track this bill for approval.
Upper Las Vegas Wash National Park Designation
The Assembly Committee on Natural Resources, Agriculture and Mining heard Assembly Joint Resolution (AJR) 1. This resolution urges legislative support for the Upper Las Vegas Wash, also commonly referred to as Tule Springs or the Southern Nevada Ice Age Park, to be designated as a national park by the federal government. The Metro Chamber testified in support of this measure because it is an opportunity for increased tourism, economic development and additional federal support in Nevada. This resolution also aligns with the Metro Chamber's federal agenda for national designation.
Week 2: February 11 - 15
Modified Business TaxThe Joint Assembly Taxation and Senate Revenue and Economic Development Committees heard a presentation on the Modified Business Tax (MBT), which is a payroll tax based on the taxable wages paid to employees. The MBT is two separate taxes: one for financial businesses and one for non-financial businesses. The presentation covered a general overview of the tax, including who currently pays and some proposed changes to the tax. Under the proposed changes, 75% of all businesses would not be subject to the MBT, which means that 25% of businesses paying the tax will be responsible for 100% of the revenue generated by the MBT.
Higher Education
Nevada System of Higher Education Chancellor, Dan Klaich, gave a presentation to the Assembly and Senate Education Committees. During his presentation, he gave an overview of the proposed new funding formula to fund higher education in the state. The new formula attempts to fairly and equitably distribute state funding among Nevada’s public higher education institutions.
The Chancellor’s proposed formula consists of two basic components: a base formula driven by course completions and a performance pool driven by performance metrics that align with the goals of the State. The Metro Chamber will continue to engage in discussions on this issue to ensure that Southern Nevada receives an equitable share under the proposed funding formula. Such reform measures would ensure more equity and that University of Nevada, Las Vegas (UNLV), would keep more of its own tuition and registration fee dollars.
Business Licensing
Assembly Bill (AB) 74 was heard in the Assembly Judiciary Committee. This bill requires that any person engaged in the business of providing advice or assistance in preparing documents at the direction of a client must register with the Secretary of State and be bonded.
At the hearing, the Metro Chamber testified in support of an amendment proposed by the Secretary of State, which would streamline the procedural component of the licensing process for these document preparers by making it more efficient and effective for those registering.
Silver State Health Insurance Exchange
The Assembly Committee on Health and Human Services heard a presentation on the Silver State Health Insurance Exchange. Jon Hager, the executive director of the Exchange, discussed various topics including implementation of the exchange, finance and sustainability, caseload projections, access and the potential impact on business. The Metro Chamber will work diligently to ensure that businesses are protected and not adversely impacted through the implementation of the Exchange.
Week 1: February 4 - 8
Response to Margin Tax Supreme Court Ruling
The Nevada Supreme Court ruled that an initiative petition to enact a “margin” tax on business is eligible to move forward. Once the initiative is transmitted to the Legislature by the Secretary of State, they have 40 days to pass it, as written in its entirety or it automatically goes on the November 2014 ballot. If the Legislature wished to develop its own competing proposal, they have until the last day of session to pass a measure and place on the November 2014 ballot.
If the Legislature chooses to pass this initiative, it will take effect on January 1, 2014. If the initiative goes to ballot in November 2014 and passes, it will take effect on January 1, 2015.
Improving the performance of the state’s K-12 educational system and higher education is essential for Nevada’s competitive business climate. However, the proposed margin tax is based on a failed model from the state of Texas. It does not guarantee extra funding for public education. It doesn't even guarantee that K-12 education will be funded at current levels. The issue of K-12 funding in Southern Nevada is not about raising more taxes; it is about the fair distribution of tax revenue. As a community, we should be looking at the current funding formula and modify it so that the children of Clark County can get their fair share.
Arbitrator Rules in Favor of Clark County School District
An arbitrator ruled in favor of the Clark County School District rescinding salary increases that were given to teachers and licenses personnel at the beginning of the school year. These increases occurred because CCSD and the Clark County Education Association could not agree on new terms when the contract expired last year.
As a result, provisions under last year's contract continued for the 2012-2013 school year. Under the old contract, teachers were awarded automatic pay raises based on seniority and professional development credits.
CCSD has indicated that they will not require teachers to pay back the money from the raises that they have already received.
Click here to read the press release from CCSD regarding the arbitrator’s ruling.
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