July 2010 – Legislative Post
Your Nebraska Retail Federation Worked Hard For You In The 2010 Session Of The Nebraska Legislature
The 2010 session of the Nebraska Unicameral is now underway. We have already been influential on two significant issues that impact Nebraska retailers.
Drivers License Scan – Presently Nebraska is the only state in the Union that does not allow retailers to scan the bar code of a driver’s license to determine eligibility for age related sales and to populate credit applications and retain the information. LB 261 was introduced to change that. Multiple Senators had unwarranted concerns about this bill and its potential to increase opportunities for identity theft. We were able to mitigate those concerns and get the bill advanced from General File to Select File (round 1) with the understanding we will address the concerns of various members prior to Select File consideration (round 2).
Forced Rebate Checks – Senator Avery introduced LB 720. If passed, it would force businesses to issue rebate checks upon customer request instead of rebate gift certificates or gift cards.
We have been in communication with Senator Avery and his staff over the last several weeks concerning this. As we understand it he received a rebate on a purchase (we believe it was a cell phone) in the form of a prepaid Visa debit card and was frustrated in his attempt to use the entire amount of the card when it got down to a small amount. He originally was thinking the bill needed to apply to ALL GIFT CARDS given as incentives or rebates. We explained that gift cards issued by retail stores are not the problem as retailers apply the remaining small amount to larger purchases. In fact, one of the primary advantages to retailers is that the card gets customers in the store and people usually spend more than the value of the card. The last thing the retailer would want to do is not honor the entire value of a store issued card. We also explained that the cards he wanted to impact were already defined in Nebraska law as “general use prepaid cards” and we got that definition to his office prior to the bill being drafted. The result is that the bill he introduced applies only to “general use prepaid cards” which are defined in Nebraska law as: “a plastic card or other electronic payment device usable with multiple, unaffiliated sellers of goods or services” and does not impact store gift cards at all. In short, we solved the problem before the bill was introduced.
We were also effective in the 2009 Session:
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.
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. We are on the lookout for this legislation in the 2010 session.
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. We understand a dram shop bill will be introduced in the 2020 session.