September 2009 – Legislative Alert
Legislative Update
The 2009 session of the Nebraska Unicameral is now history. Here is a quick summary of the issues of interest to Nebraska Retailers:
Sales Tax Holiday – We were successful in stopping a “faux sales tax holiday” effort that had the sales tax still due but the retailer paying it instead of the customer. Our efforts to pass a true sales tax holiday were not successful due to the very tight budget.
Limits on Spray Paint Sales – We were successful in stopping legislation that would have prohibited spray paint and “industrial marker” sales to minors.
Changes to Workers Compensation – We were successful in stopping changes to workers compensation that could have resulted in higher work comp rates for business owners.
Electronic Recycling – A bill requiring manufacturers to be responsible for recycling costs of computers and televisions was introduced but did not pass. We do not oppose this effort as long as the responsibility is on the manufacturer and does not require the retailer to collect a point of sale recycling fee.
Sales Tax Collection Allowance – In these very tight budget times, we were not successful in getting an increase in the amount paid to Nebraska Retailers for collecting sales tax. We will continue this effort until we are successful.
Assistance for Rural Retailers – We thank Senator Deb Fischer for introducing legislation recognizing that retailers are vital to rural communities. Although it did not pass, hopefully the discussion will result in favorable action over time.
Immigration – The body passed an immigration bill that requires state agencies and most state contractors to use E- Verify in their hiring practices. We worked to insure that it has no negative impact on Nebraska Retailers.
Paid Leave Restrictions - Legislation was introduced that would restrict employers on how they allocate paid leave. We opposed the broad reach of this bill and were successful in limiting it so it does not impact Nebraska Retailers.
Employee Termination – We were successful in stopping legislation that required an employer to provide an employee a reason for termination. We opposed this effort as it could have impacted both employers and employees negatively.
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Important Federal Issue
Employee Free Choice Act (EFCA) – We have been actively opposing this federal legislation which should more accurately be titled the Employee Forced Choice Act as it would effectively eliminate the secret ballot for employees in the decision to unionize a workplace. Nebraska is a key state in this national battle primarily due to Senator Ben Nelson being one of the few Democrats in the Senate who is not a sponsor of the bill. Senator Nelson opposes the legislation but has not committed to vote against cloture which is key to defeating the effort.
Past Legislative Successes
IMPERVIOUS SURFACE FEES FOR STORM WATER – We have consistently and successfully opposed this effort for years because it is an attempt to create a storm water utility fee based on “impervious surface”. Anyone with a roof and parking lot would pay a significant fee. Traditionally, storm water control has been funded by property tax and we believe property tax is the most efficient method. When calculated, the “impervious surface” fee to businesses could be more than double the potential addition to their property tax. The 2009 session is the first in several that has not had an “impervious surface” bill introduced. We feel this is due at least in part to our successful opposition efforts in past sessions.
DRAM SHOP – This continues to be an ongoing issue. The term “dram shop” refers to legislation that holds sellers of alcohol liable for injury, death or damage resulting from selling to an intoxicated person or a minor. In past sessions there have been attempts at enacting dram shop legislation in Nebraska invoking potential liability for selling to intoxicated persons and minors. We were successful in removing the “intoxicated person” language by insisting that it was an arbitrary term that cannot be specifically defined. As a result, present law only applies to those who sell to minors. There remains a desire among some senators to enact mandatory training of all sellers. While mandatory training is a significant step back from dram shop, it would be an added responsibility to our members. Neither a dram shop bill or a mandatory training bill was introduced in the 2009 session.
May Retail Sales Up From April -
Down From Last Year
Washington - Without stimulus checks from Uncle Sam, consumers had less money in their pockets to spend last month. According to the National Retail Federation, retail industry sales for May (which exclude automobiles, gas stations, and restaurants) increased 0.2 percent seasonally adjusted from April but dropped 4.7 percent unadjusted over last year.
May retail sales released by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.5 percent seasonally adjusted over April and decreased 11.1 percent unadjusted year-over-year.
“With no direct stimulus for consumers this year, retailers were left with tougher comparisons, making May retail sales appear weak,” said economist Rosalind Wells. “However, a slight sales increase from April provides hope that the economic turnaround may not be that far off.”
Sales at building material, garden equipment and supplies dealers increased a solid 1.3 percent seasonally adjusted from April but decreased 12.8 percent unadjusted year-over-year. Sporting goods, hobby, book and music stores sales dipped 0.8 percent seasonally adjusted month-to-month and decreased 2.6 percent unadjusted over April. Sales at clothing and clothing accessories stores jumped 0.4 percent seasonally adjusted month-to-month, but decreased 8.9 percent unadjusted year-over-year.
With or without rebate checks, consumers were still spending freely on necessities: sales at health and personal care stores increased 0.7 percent seasonally adjusted month-to-month and 3.3 percent unadjusted year-over-year.