NEWS BRIEF – WEEK OF MARCH 8, 2010

Federal Update

Special Update: Part-Time Exemption in Current Healthcare Reform Legislation at Risk as Congressional Democrats Assemble Votes

Although a majority of the population continues to oppose the current healthcare reform package, Congressional leaders and the Administration are moving forward with the legislation. Most news outlets have reported that President Obama has given the House until March 18 to pass the Senate’s version of the legislation. But during the negotiations, a few shifts in policy are becoming apparent – particularly one that could erode the existing exemption on part-time employees.

Under the healthcare reform legislation that passed the Senate—the proposal that stood the greatest chance of passage prior to the election of Massachusetts Senator Scott Brown (R)—employers are not forced to offer healthcare coverage. But larger employers—defined as those with more than 50 full-time employees—would be required to pay fees to help cover any of their employees who purchased insurance through the subsidized government exchange. The Senate bill also specifies a full-time employee as one who works 30 or more hours a week.

Rep. George Miller, chairman of the House Education and Labor Committee, is considering adding a provision that would make it harder for employers to classify workers as part time to escape a mandate for subsidizing health care coverage.

Because of the enormous costs of the legislation, we have been anticipating the part-time exemption would be removed. However, even if the exemption does survive intact in this effort, it will likely be adjusted within the first few years of enactment to capture more revenue from part-time employers.

We are currently activating the state grassroots network and asking BPAA members to contact key House Democrats who are considering opposing the legislation. In addition, over the next three weeks, the Committee to Rethink Reform – a 501(c)(4) organization managed by Berman and Company -- will be launching a new $3.5 million dollar ad campaign in selected districts that focuses on how the proposed legislation will increase the national debt and cost jobs.

To see a sample of a generic version of the commercial that will start running on Tuesday, March 9 in a dozen key districts, click here.

Legislation Introduced to Fund Development of Universal Alcohol Sensing Technology in Vehicles; Universal Interlock Mandate One Step Closer

Recently, Senator Tom Udall (D-NM) doubled down on his push for interlocks and the expansion of alcohol sensing technology by introducing a bill to provide $60 million in federal funding for the research and development of interlock technology for application in all vehicles. This bill follows a proposal Senator Udall introduced in December to mandate that states require interlocks for all DUI offenders regardless of BAC levels, and provides further confirmation of interlock activists’ ultimate goal of mandating interlocks in all cars. While these groups claim that “universal interlocks” will be set at the legal limit of .08, there is no practical way that that will happen. The program director of the interlock project that Sen. Udall is seeking funding for even admitted – in a July 2009 interview with the Milwaukee Journal-Sentinel – that alcohol sensors will be set below the legal limit.

Although this is a separate piece of legislation, this issue will not come up for serious debate until the highway bill is taken up. We will still be activating the state grassroots network to oppose this provision and any other provision that would be designed to expand interlock technology.

ALCOHOL

Indiana Passes Industry-Supported Repeat Offender Interlock Law

Legislation that would require ignition interlock for only those drivers with more than one drunk driving arrest made it through final negotiations and now awaits approval from Gov. Mitch Daniels (R). The legislation importantly gives judges the authority to monitor former habitual traffic lawbreakers and does not apply the new law to low-BAC or first-time offender. The hospitality industry has supported interlock laws for repeat offenders.

FOOD

Philadelphia, PA Mayor Proposes Soda Tax

On Thursday, Philadelphia Mayor Michael Nutter (D) announced his budget plan for the 2011 fiscal year. The city is faced with a growing budget deficit of between $125 and $150 million, and Nutter has proposed a soda tax as one source of extra revenue. The proposal would levy a 2-cent-per-ounce tax on sugary drinks (an extra $2.88 tax on a 12-pack of soda cans), which will inevitably hit bowling center operators. The soda tax increase is estimated to rise between $30 to $77 million in extra revenue for the city. Notably, some city officials are discussing including the soda tax with the city’s business privilege tax in order to bypass a vote from the city council--where support for a soda tax is not as strong.

LABOR/WAGE

Sponsor of Maine Minimum Wage Indexing Proposal Withdraws Legislation

On Monday, the Maine Joint Labor Committee voted to kill legislation (LD 192) that would automatically index the state minimum wage to the Consumer Price Index (CPI) each year. The bill’s sponsor, Rep. John Tuttle (D-Sanford), subsequently withdrew the legislation from consideration. Small business owners, some employees, and many legislators expressed concern over how the wage mandate would hurt businesses already struggling in the state. Prior to the vote, we contacted committee members--through the Berman and Company-managed Employment Policies Institute--to explain how mandating annual wage hikes would force employers to cut employee hours and positions.