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| Tuesday, February 06, 2007 |
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Round-up at the Carson City corralSession predicted to be business-friendlyBusinesses will find the 2007 legislative session a little friendlier than in years past, as Nevada's 63 elected legislators begin work this week. Unlike the 2003 session, when industries across the board fought a proposed, broad-based business tax, there's no unifying cause this time around, lobbyist George Ross explains: "I don't see that someone is shooting a 10- or 20-gauge shotgun at businesses." Business taxes, workers' compensation, payday loans and funds used to promote Nevada's tourism industry are among topics getting the most attention from state lawmakers.
The 42-member Assembly is under Democratic control, with Speaker Barbara Buckley (D-Las Vegas) directing traffic as the first woman to lead Nevada's lower chamber. New Majority Leader John Oceguera (D-Las Vegas) will also have a hand in setting the Assembly's agenda. While there may be some contentious issues between the Democrat-controlled Assembly and the Republican-controlled, 21-member Senate, Oceguera predicts smooth sailing. "This isn't like California or Washington, D.C.," the four-term legislator said. "There's not a whole lot of issues that we disagree on. We try to work together as much as possible." As far as legislation affecting businesses goes -- Oceguera is also chairman of the Assembly's Commerce & Labor Committee -- he says 18 bills are pending on trade regulations, 10 on organized labor, 49 on specific occupational provisions, six on banking, seven on insurance and 10 on energy, all likely to pass his desk. He added that 60 or more pending bills will fall into one or more of the latter categories. Some of the other issues legislators will be dealing with that involve businesses, Oceguera says, will involve helping to offset the state's new minimum-wage standard, which is tied to the federal minimum wage. As the federal minimum wage goes up, so too will the state wage, unless Nevada's delegation can get an exemption written into the proposed law. Oceguera would also like to see health care coverage increase for workers without hurting small businesses. He says this can be done with the right incentives, adding, "it seems to just make more sense to me to incentivize health care costs." BANKERS LIKELY GRANTED ONE WISH The bank excise tax, imposed in 2003, has a strong chance of being repealed, according to state senators Mike McGinnis (R-Central Nevada), chair of the Senate Taxation Committee, and Warren Hardy (R-Las Vegas), vice chair of the Senate Commerce & Labor Committee. The tax charges banks $1,750 per annum, per bank branch, which costs banks that are already charged a higher payroll tax a significant amount of money when compared to other industries doing business in the state. But banks, attempting to grow alongside the communities they serve -- especially in Southern Nevada -- are opening branches in record numbers. "It's an important bill. It sends a message to businesses coming into the state," McGinnis said of the tax repeal. "Businesses need predictability and fairness." Across the aisle, Hardy predicts bankers can successfully make the case that they were singled out for an extra tax, which will gain them the needed support among legislators. Gov. Jim Gibbons said during his State of the State address, in January, that he will push hard for the repeal, along with an overall decrease in business taxes. "During the campaign I promised Nevadans I would save them money. I will stand by my word," he said. "I am proud to announce that I will be seeking a 4.6 percent decrease in the modified business tax, from .65 to .62 percent, resulting in $28 million in tax relief for 55,748 Nevada businesses." WORKERS COMP UP FOR DEBATE There are at least a dozen bill drafts addressing workers' compensation issues in the state, according to Ross, whose clients include the Las Vegas Chamber of Commerce, the Retail Association of Nevada and the Nevada Restaurant Association. "Generally, they will make it easier to qualify for workers compensation," he forecast. The Snell & Wilmer attorney did voice concern over Nevada possibly losing a competitive advantage against California, where employers constantly complain about the high cost they pay for the insurance. This issue may be among the more contentious fights during this legislative session. Four of the drafts looking at workers' compensation changes are sponsored by Assemblyman Jerry Claborn (D-Las Vegas). One of Claborn's main concerns is what he claimed are "automatic" denials of compensation claims at the first state hearings. Nevada's labor unions are pushing for some of the bills, Hardy maintains. He pointed to Claborn's bill draft requests. "That bill is pretty well motivated by the union," the senator said. That comment didn't sit well with the Las Vegas assemblyman, who says it was too early to talk specifically about his bills. "What does he know? He hasn't seen the bill? How does he know that the public isn't pushing for it?" The purpose of his drafts is to protect workers, Claborn maintains, adding that he wasn't swayed by lobbyists' arguments that the changes could hurt the state's economy. "I don't care if Big Business comes in if it comes in on the backs of the working man and working woman, and even working children," he said. "I don't work for lobbyists, I work for my constituents." Claborn is ready for a fight. "If I didn't think people weren't getting treated fairly, and not getting their rights and their medical treatment, there wouldn't be all these (workers' comp) bills," the assemblyman said. "It's sure to God not to take away their benefits." PAYDAY LOAN COMPANIES, BEWARE Payday loan companies have often found themselves in the crosshairs during the Legislature's offseason. Buckley says she will close loopholes in a law passed last session which should have reduced the enormous interest rates some predatory lenders charge. "The business practices of some payday lenders in our community invite the disgust of elected officials and the community at large," Buckley wrote in an e-mail response to questions about payday loan companies last year. "Until payday lenders stop placing people on debt treadmills, I would suspect that political pressure will not alleviate." Buckley has a bill draft request pending from August to revise the provisions of laws governing check-cashing and loan companies, according to legislative records. CONCERNED CASINOS The hotel-room tax will be the subject of debate as both Senate Minority Leader Dina Titus (D-Las Vegas) and freshman Assemblyman Richard "Tick" Segerblom (D-Las Vegas) eye a piece of the more than $200 million a year generated by the tax. That money now goes to the Las Vegas Convention & Visitors Authority to promote tourism and fund the "Only in Vegas" marketing campaign and the rest goes to the local governments represented on the authority. Titus has said previously that she wants to look at using some of the money for other purposes. Segerblom is proposing using 1 percent of the money, or about $2 million, to fund museums -- an effort he thinks can also bring in tourist dollars. Still, the first-term assemblyman acknowledged he'll be in for a fight from the gaming industry. After all, it is used to market Las Vegas and its resorts, saving the gambling giants advertising dollars. "Because it is a tax where they control where it is used," Segerblom asked rhetorically, "is it really a tax?" The gaming industry might also be worried that, if one other use is authorized for the money, the floodgates will open for future requests, the freshman assemblyman says. He isn't too impressed with the "What Happens in Vegas, Stays in Vegas" campaign, anyway. "In Las Vegas, we are worried about schools, and that campaign goes out and says, 'This is what we do here.' I've always been against marketing Las Vegas on sex." vmiller@lvbusinesspress.com | 702 871-6780 x331 mward@lvbusinesspress.com | 702-871-6780 x339 |
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