Government Affairs

Why Reform Matters

Why Reform Matters

In nearly every state, to be read on the front page of nearly every newspaper, the economic problems of the last several years have forced an examination of the way we run our states, provide education to our children and services to those in need, and retrain our workforce to be competitive in a global environment.

The combination of greater needs and reduced revenue has elevated the importance of correctly and effectively spending each and every taxpayer dollar. Nowhere is this more true than in Nevada.

A Look at Oscar's Good Run

Few mayors in America are known outside their cities – Michael Bloomberg in New York, Richard Daley in Chicago and Oscar Goodman from Las Vegas. Big names associated with big cities. And in the Entertainment Capital of the World, the mayor stands out as one of the top headliners in town: Cher, Celine and Oscar.

County finds more widespread abuse of firefighter sick leave

Abuse of sick leave by Clark County firefighters was more widespread than union officials acknowledged, county officials reported Tuesday.

More than a third of firefighters used more than month’s worth of sick pay last year, officials said. While some firefighters had legitimate reasons to use sick leave, evidence shows some did not and gamed the system to make extra money and take longer vacations, officials said.

Las Vegas Chamber of Commerce Health Care Reform Statement

The Las Vegas Chamber of Commerce understands the need to improve health care in the United States. Health care concerns are centered on two primary issues – the high and rapidly-rising cost of health care, and the millions of uninsured Americans, including those temporarily uninsured due to changes in employment. The following are the Las Vegas Chamber’s principles for health care reform:

COST: Lowering the cost of health care must remain a top priority of any reform package including:

BizPAC is your best bet to promote a pro-business agenda

By Hugh Anderson, Chairman, Government Affairs Committee

Hugh Anderson graphicThe 2009 Nevada State Legislative session is over and I am proud to report that the Las Vegas Chamber of Commerce was successful in working to pass meaningful long-term reform and defeating anti-business legislation.

Chamber gets reform passed during legislative session

More than 1,000 bills made their way through the 75th Nevada Legislative Session. The Las Vegas Chamber of Commerce was there from day one driving forward key policy improvements and fighting to defeat potentially-detrimental bills for the business community.

Economic Recovery & Reinvestment Act of 2009 filled with small business opportunities

By Harry Reid, United States Senator for Nevada

Chamber pro-business agenda considered by Legislature

Several anti-business bills also pending

LegislatureWith one month to go before its June 1 scheduled adjournment, the 2009 Legislative session has heated up, and there are many pending bills that pertain to business. The Chamber's government affairs team has been working full-time to ensure that the interests of business are protected from onerous legislation, particularly from legislation that would harm businesses during these tough economic times.

In addition, the Chamber has been advocating for its reform agenda including making significant changes to the public employees' retirement system and benefits program. Here's an update on pending legislation that may affect your business and the fiscal health of our state.

PERS/PEBP

The Chamber is proactively driving changes to the Public Employees' Retirement System (PERS) and the Public Employees' Benefits Program (PEBP). Combined, these programs currently have an unfunded liability of more than $10 billion, and it is likely even higher because of declines in the investment market. Unless significant changes are made to PERS and PEBP, the cost of paying these benefits will go up dramatically in the near future and will likely take dollars away from other priorities such as education and transportation.

Senate Bill (SB) 367 makes various changes to the provisions governing the Public Employees' Retirement System including many of the recommendations proposed by the Chamber.

Taxation

The Economic Forum is meeting May 1, and it is likely to project even less revenue for the state than it projected in December. The Economic Forum is responsible for providing forecasts of the state's general fund revenues and by law its projections must be used by the Legislature in setting the state's budget. Although there are no specific proposals for revenue enhancements as of April 23, revenues may need to be increased in order for the state to provide essential services.

The Chamber has gone on record countless times during the Legislative session stating that considerable reform to PERS and PEBP must be addressed by the Legislature before the business community will consider increasing the tax burden on an already struggling economy.

The Chamber is firmly opposed to a gross receipts tax, a business income tax and increased taxes on the gaming industry. The Chamber remains committed to protecting the interests of businesses and ensuring that any additional taxes be as broad-based as possible, thereby limiting the impact on individual businesses.

General Business

There are several bills that would make it more costly for you to do business or would open your business up to more lawsuits or greater regulation.

Assembly Bill (AB) 22 changes provisions related to trade practices and would make it harder for you to defend against an accusation of deceptive trade practices. AB 381 would restrict the use of arbitration by businesses and could result in a major increase of litigation, costing your business more money. And AB 491 would make it tougher for businesses to collect debt for services rendered.

Workers' Compensation

There are several bills that, if passed, will change Nevada's workers' compensation laws and negatively impact business. One of the most onerous is AB 178, which if passed, would change several key aspects of workers' compensation laws that would result in much higher costs for businesses. In addition, AB 511 would eliminate Nevada's no-fault workers' comp system as a sole remedy and would permit lawsuits against insurance companies, third-party administrators and employers.

Education

Senator Steven Horsford has proposed SB 330, which enacts the Initiative for a World-Class Education in Nevada. The Chamber believes that this could be a significant step towards implementing a performance pay system for teachers that would result in rewarding teachers who are measurably improving student performance and the quality of education in our classrooms.

Currently, two bills are being considered that would establish a public education stabilization fund. They are SB 150 and AB 55. Creating such a fund is one of the Chamber's top reform priorities. It would allow money expressly for education to be set aside during good economic years that can be utilized to stabilize the education system during downturns in the economy.

Health Care

The increasingly high cost of health insurance makes providing coverage a struggle, particularly for the selfemployed and small business. As a result, many of Nevada's workers remain uninsured.

AB 162 requires certain private sector health care plans and policies of insurance to provide an option of coverage for screening, diagnosing and treating autism spectrum disorders. While adding more coverage may sound like a good idea, mandates often increase the cost of health care insurance, making it even more expensive and causing more people to become uninsured.

AB 495 removes the $350,000 cap for noneconomic damages in a medical malpractice case if the doctor's conduct is determined to constitute gross negligence. The result of the legislation would be that by eliminating the cap, all suits would likely be filed alleging gross negligence. This bill, if passed, would likely drive up the cost of malpractice insurance, making it more difficult to recruit and retain medical specialists and potentially reducing the quality of health care for Nevadans.

State Budget/Fiscal Policy

It is imperative that the Legislature adopt a set of "best practices" when it comes to writing its biennial budget. The Chamber is supporting AB 165 that would make the current Budget Stabilization Fund a better tool to confront tough economic times.

If you have any questions regarding pending legislation, please contact Veronica Meter, Vice President of Government Affairs, at vmeter@lvchamber.com or 586-3815.

10 things you need to know about the Employee Free Choice Act

Stop the EFCASmall business intimidation is closer to becoming a reality with the introduction of the Employee Free Choice Act (EFCA) in the U.S. Senate (S. 560) and U.S. House of Representatives (H.R. 1409) on March 10, 2009. If EFCA, or card check, stands the test of the legislative process it will drastically change the laws governing how employees may unionize and the rules governing business. EFCA is the number one job-killing piece of federal legislation the business community will face in 2009.

Every business is vulnerable to the effects of EFCA. Here are ten things you need to know about the bill:

1. Small Businesses Most Vulnerable

There are no exemptions for small business in the Employee Free Choice Act. In fact, of the 2,649 secret-ballot elections conducted by the National Labor Relations Board (NLRB) in 2005, more than 20 percent involved workforces of fewer than 10 employees and 70 percent involved workforces of fewer than 50 employees. This bill affects every employer.

2. Effectively Eliminates Secret-ballot Elections

Under current law, if a union gathers signatures from 30 percent of employees, it may request an employer to voluntarily recognize them. If an employer denies recognition then the union may take those same signatures to the NLRB and request a secret-ballot election. Employees become unionized if a majority votes in favor of the union during the election. Under EFCA, employees can become unionized if only a simple majority sign the cards.

3. Unions Will Hold All the Cards

Proponents of EFCA claim that employees are “free” to “choose” between either a secret-ballot election or a card check campaign as the method by which their union is to be recognized. When you consider the fact that unions win about half of all secret-ballot elections but are successful on 90 percent of all card-check campaigns, it’s clear which method union organizers will choose for employees.

4. Independent Contractors Included

Independent contractors are fair game during a card check campaign. Under EFCA, independent contractors can count toward the majority of workers necessary to unionize a business.

5. Open-Ended Time Limit on Unionization Campaign

There are no time limits on card collection. The unions would be able to collect these cards from employees and independent contractors for as long as it takes to get 50 percent plus one to sign a card. Once a card is signed, it gets counted, even if your employees change their minds.

6. Creates Environment of Intimidation

The Employee Free Choice Act really should be called the Small Business and Employee Intimidation Act. Why? Because by taking away employees’ rights to a secret-ballot election, it will most likely create an environment of union intimidation and coercion of employees. Moreover, half of employees lose their right to express themselves with regard to union representation.

7. Places a Gag on Employers

Card check is a silent process. Unions do not need to announce their intention to conduct a card check campaign. Therefore, employers may never know their business is being unionized until it is too late. If EFCA is passed, employers may be fined $20,000 for communicating the harsh impacts of unionization with their employees during a unionization campaign they may know nothing about. Employers lose their ability to communicate freely with employees.

8. Mandatory Arbitration After 120 Days

If no agreement on contract terms is met with union reps in 90 days, employers will be forced into 30 days of mandatory mediation. If no contract is agreed to during mediation then a federally-appointed arbitrator will determine the terms of a two-year contract to which employers must adhere and have no right of appeal.

9. Employers Lose Control Over Their Business

The contract terms set by a federally-appointed arbitrator will strip away employers’ ability to give employees raises for a job well done, provide affordable health care or discuss workplace standards with employees in order to meet their needs. All of this, along with every other face of business, may be set in a binding two-year contract on which neither the employer nor employees may provide input.

10. Will Further Cripple the Economy

Big Labor argues that the bill would stimulate the economy through better-paying jobs. Wrong! The truth is EFCA is an assault on free enterprise that will permanently cripple the economy. Proponents say the bill would make it easier for labor to unionize all businesses and restore fairness in the workplace. Wrong again! EFCA is not about workers’ rights; it’s about dollars and cents for the union coffers.

EFCA is the number one priority for Big Labor. After spending an unprecedented $450 million to elect more congressional allies in last year’s election, Labor is looking for a big payback-passage of EFCA as soon as possible. It is imperative the business community get engaged in the fight to stop EFCA. Federal lawmakers in Washington, D.C. must be contacted and urged to OPPOSE the Employee Free Choice Act. Time is running out. Action is required.

Go to www.lvchamber.com today, click on the STOP EFCA icon on the upper-right side of the home page and send a letter to federal legislators asking them to stop this job-killing legislation.

If you are interested in learning more about EFCA and what you can do to fight it, please contact the Las Vegas Chamber of Commerce at 641-5822 or go to our web site at www.lvchamber.com.