Progress in 2007
Your Nebraska Retail Federation Worked Hard For You In The 2007 Session Of The Nebraska Legislature
Please take time to review these issues of concern to you. They may have a direct effect on your bottom line.
We encourage and welcome your input at any time. To express your opinions and concerns, or to find out how your senator voted, please contact NRF President Jim Otto at 402-474-5255 or 800-944-9674 or e-mail: nebretailfed@hotmail.com. To read these bills go to http://www.nebraskalegislature.gov/web/public/research.
Remove $100 Gift card/certificate Limit. Prior to our successful efforts in the 2006 session, unused Nebraska gift cards/certificates over 3 years old became "unclaimed property." This means the issuer (retailer) was required by law to send this money to the state treasurer. We were successful in exempting gift certificates/gift cards “under $100” with no fees and no expiration date from becoming unclaimed property. We are very appreciative of the efforts of Senator Carol Hudkins on this issue in both the 2006 and 2007 sessions. In the 2006 session, she introduced the original bill which was successful but got amended with the “under $100” language. In the 2007 session, she introduced LB 668, which would remove the $100 limit. If LB 668 is enacted, all gift cards and gift certificates issued by Nebraska businesses would be exempt from becoming unclaimed property if they have no expiration date and no fees. LB 668 was advanced to the floor of the legislature by the Judiciary Committee but ran out of time in the 2007 session. It will carry over to the 2008 session.
In the meantime, instead of a $100 gift card/certificate, we suggest you issue two for $50 and instead of a $150 gift card/certificate, we suggest you issue two for $75 and so on so that both would be “under $100.” It is important to note that gift cards with expiration dates and/or fees still become unclaimed property if they go unused for three years. Therefore, we believe it is in your best interest to eliminate expiration dates and/or fees from your gift card/certificate program entirely.
Dram Shop. Senator Lowen Kruse of Omaha introduced LB 573, which would make Nebraska a “dram shop” state. The term “dram shop” refers to legislation that could hold negligent sellers and servers of alcohol liable for injury, death or damage resulting from selling to or serving an intoxicated person or a minor. We have been successful in stopping this in past sessions and opposed it again this session. As introduced, LB 573 included potential liability for serving intoxicated persons and minors. It passed the legislature but the “intoxicated person” language was removed and now only applies to those who sell or serve to minors. Senator Kruse accepted this change but we believe he will attempt to put the “intoxicated person” language into the law next session.
Clarification of Accrued Vacation and Sick Leave. This became an issue after a recent State Supreme Court decision establishing liability for accrued vacation and sick leave upon employee termination. We worked with the State Chamber of Commerce on this issue. Senator Kent Rogert introduced LB 255 which provides clarification and flexibility for employers in determining policy on this issue. It was passed by the 2007 legislature and has been signed by the Governor.
Minimum Wage Increase. Once again, there was an effort to raise the Nebraska minimum wage. However, since an increased minimum wage has now passed at the federal level and has been signed by President Bush, the Nebraska law now simply mirrors the federal law. Under the federal law, minimum wage will rise to $7.25 per hour over the next two years from its current $5.15. The first raise, to $5.85 an hour, will occur on July 24, 2007. A year later, the minimum wage will rise to $6.55 an hour, and it will go to $7.25 per hour a year after that.
Storm Water. This issue comes up each year. So far we have been successful in stopping it. Senator Dianna Schimek of Lincoln introduced LB 534. We oppose this effort because, if enacted, it would give authority to certain cities, counties and Natural Resource Districts to assess a storm water utility fee based on impervious surface. The bottom line is that 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 fee to businesses could be more than double the potential addition to their property tax. The legislature has ordered an “interim study” on the storm water issue. The results of the study will be taken up in the 2008 session.
Increase sales tax collection allowance. Retailers do the State of Nebraska a significant service by collecting and remitting sales tax. Several years ago, in lean budget times, the sales tax collection allowance that businesses are allowed was cut back severely. Senator Carrol Burling introduced LB 423, which would restore the collection allowance to its previous level. The Revenue Committee indefinitely postponed it but we will continue to raise this issue.
Common Sense Consumption. Frivolous lawsuits are a growing concern to all business. Any business that sells food of any kind should be concerned. Food is quickly becoming the next frontier for "regulation through litigation" lawsuits, a tactic that began with tobacco litigation in the early 1990s. We are very appreciative to Senator Pat Engel of South Sioux City for introducing LB 625. This bill labels claims as "frivolous" if they result from weight gain or obesity due to the long-term consumption of food. It prohibits liability to manufacturers or providers of food if the consumer eats more than is healthy for him/her to consume. The attempts to get this done at the federal level have been unsuccessful. As a result, our state initiative takes on more importance. The bill ran out of time in the 2007 session but will be back on the agenda for the 2008 session.
Important Retail Issues Resolved in Recent Legislative Sessions
These are just two of the past significant wins by your Nebraska Retail Federation. They should have a positive effect on your bottom line.
Change Nebraska's gift card/gift certificate law. In the past, unused Nebraska gift cards/certificates over 3 years old became "unclaimed property." This means the issuer (retailer) was required by law to send this money to the state treasurer. We were successful in exempting gift certificates/gift cards under $100 with no fees and no expiration date from becoming unclaimed property. This became effective November 1, 2006. It is important to note that gift cards with expiration dates and/or fees still become unclaimed property if they go unused for three years. Therefore, we believe it is in your best interest to eliminate expiration dates and/or fees from your gift card/certificate program entirely. Also, instead of a $100 gift card/certificate, we suggest you issue two for $50 and instead of a $150 gift card/certificate, we suggest you issue two for $75 (and so on) so that both would be “under $100.”
Revise Nebraska’s Unemployment Insurance System. The 2005 Legislature overhauled the state’s unemployment benefits system. The result is a much fairer system for Nebraska retailers. Your Nebraska Retail Federation was a key player in this legislation. It has already saved many of our members thousands of dollars.
Past successes include:
● Unemployment Insurance
Your Nebraska Retail Federation worked in the 2005 session on legislation to make Nebraska’s unemployment insurance more equitable. The legislation was enacted and, as a result, the Nebraska Department of Labor has changed the formula for calculating Unemployment Insurance rates for 2006 and beyond. In the long term, this will be a positive change as the previous formula unfairly hit the best employers with the lowest layoff history: Nebraska Retailers. The new formula makes those employers with the highest claims pay more of their fair share.
There were 10 categories in 2005 ranging from .4% to 5.4% of the wage. There will be 20 categories in 2006 ranging from .39% to 6.76% of the wage. The taxable wage base will be $8,000 in 2006 and $9,000 in 2007 and thereafter.
● Pseudoephedrine
Nebraska passed a meth law during the 2005 Legislative session. As originally proposed, it would have prohibited pseudoephedrine sales in most Nebraska stores by only allowing pharmacies to sell it. We worked very hard to change the proposed bill and were successful in retaining the right of all Nebraska retailers to sell pseudoephedrine. The final bill does not require a log book and allows any retailer in Nebraska to sell it as long as it is behind the counter. We also got pediatric doses exempted from the behind the counter requirement. If you have compliance questions, please call 800-303-7354.
● LB 122 -Pressure Vessel Inspection
The Nebraska Department of Labor (NDOL) started inspecting the new common C02 tanks used with soft drinks and charged a fee for this unnecessary inspection. The Nebraska Retail Federation met with the NDOL several times to negotiate an agreement and save money for retailers. LB 122 is the result of those negotiations and is now law. It creates exemptions for certain pressure vessels including C02 tanks that do not pose a safety risk.
● LB 301 - Electronic Equipment Recycling Act - Did not Pass.
The NRF opposed this bill. This legislation would have required a fee of $10 be charged on the sale of all new televisions and computer monitors and would have banned the disposal of electronic equipment in landfills. It did not get enacted by the body last session but it is our understanding that Senator Priester is going to introduce it again in the 2005-06 session.
● LB 32 - Storm Water Management - Did not pass .
The NRF strongly opposed this bill resulting in a win for retailers. This bill authorized fees to shift costs away from the public approval of bonds or public scrutiny of property taxes. It would have authorized individual jurisdictions within Nebraska to assess a new utility fee for storm water management based on the amount of “impervious surface.” In other words, if you or your landlord have a roof and/or parking lot, you could have been assessed significantly higher fees. This issue will not go away and the NRF will continue to fight it.
● LB 435 - Minimum Wage - Did not pass.
The NRF opposed this bill resulting in a win for retailers. LB 435 would have raised the minimum wage for all employees in Nebraska from $5.15 to $5.75 per hour in two-step process with an increase from $5.15 to $5.45 effective October 1, 2004 and an increase from $5.45 to $5.75 on April 1, 2005. The most recent increase was in 1997. Employees who receive gratuities would have remained at $2.13, but the employer would have to show that each employee met or exceeded the new minimums.
Updated June 21, 2007
