Chamber Encourages Congress to Focus on Jobs, Economy
Harmful Proposals in D.C. Creates Uncertainty for Employers

The multitude and magnitude of issues being debated in our nation’s capital that would directly impact North Carolina employers and their ability to survive the global recession and grow in a global economy is mind-boggling.  Labor law issues, such as the Employee Free Choice Act (or card check legislation); national health care reform efforts; tax and regulatory issues, such as the Consumer Financial Protection Agency Act (CFPA) and climate change legislation are all examples of expansive proposals that would significantly impact employers, job retention and creation, and our economy.

These sweeping proposals and the potential for outcomes that could negatively affect the national deficit and cost-of-doing-business are creating uncertainty that makes it very difficult for employers to steer through this challenging economic environment.  The North Carolina Chamber is following these issues closely and with the involvement of our members has weighed in with members of our Congressional delegation on a number of them. 

Provided in this edition of THE BUSINESS Advocate is a summary of some of the most critical proposals under consideration by our representatives in Washington right now.  Our Chamber will continue to be engaged on these issues on behalf of North Carolina employers to ensure that our members of Congress understand their potential impact.  Being focused on Shaping’s North Carolina’s Future requires an understanding that while legislative sessions may temporarily adjourn, our state Chamber’s advocacy efforts to keep and create good jobs and grow our state’s economy can never let up.  

Numerous Proposals Would Drastically Change Labor Laws

There are currently more than 50 pieces of pending federal legislation governing virtually every aspect of the workplace, including union organizing, mandatory leave policies, safety, immigration, and others.  Provided below are some details on some of these proposals.  Click here to find out more about this pending legislation, along with the current status and key features.

Pending Agency Nomination Could Alter Labor Law System

Many union leaders, who have hit road blocks in securing their “card check” legislation thanks to the ongoing efforts of an organized business community, see another opportunity to change our country’s labor law system through nominations to the National Labor Relations Board (NLRB).  The NLRB, created in 1935 by the National Labor Relations Act, oversees union elections and handles charges of unfair labor practices.

Recently the US Senate’s Health, Education, Labor and Pensions (HELP) Committee approved three of the president’s nominations to the National Labor Relations Board.  One of the nominees is Craig Becker, attorney for the Service Employees International Union (SEIU).  His nomination is controversial not only because of his work for a large, international union, but also because during his tenure as a law school professor he objected to any employer involvement in the union organizing process.  Additionally, former Clinton NLRB Chair William Gould has indicated that Becker may seek to implement aspects of the EFCA on his own as union leaders become increasingly frustrated with the lack of Congressional action to move their top legislative priority forward.

Becker’s final nomination vote in the full Senate is being temporarily held up by a procedural move put forth by Sen. John McCain (R-AZ).

Paid Sick Leave Proposals Would Hurt Struggling Employers

There have been several proposals introduced in Congress that would mandate specifically how employers manage their workplaces, including bills that would require employers to provide a mandated amount of paid sick leave.  To date, there have been three different bills introduced in Congress that will mandate a certain amount of paid sick leave for all employers across the country.  Click here to review these proposals.  

Unions’ Card Check Bill: The Fight is Not Over…
2010 Elections Bring New Challenges

Unions’ “card check” legislation (the Employee Free Choice Act) has been a top issue for the North Carolina Chamber since its initial introduction back in 2007.  Because this issue could rewrite American labor law and is so critical to our economic future, our Chamber keeps a close eye on activity and dialogue that could impact its future prospects.

With one of North Carolina’s US Senate seats up for grabs in 2010, our state Chamber has made it a priority to share with all candidates in the race the devastating potential effects of pending card check legislation and North Carolina employers’ strong opposition to this bill that is bad for employers, employees and the economy. 
It is very important that employers also continue to communicate with our elected representatives in Congress about this harmful bill.  While the organized business community has made significant progress in the battle to prevent unions’ card check legislation from becoming law, unions and their allies have made clear that they will continue working to get some version of their bill passed. 

Right now unions are working to develop an alternative to the card check bill that could get past the vote hurdles they face.  The so-called compromise proposals that we have heard about are just as harmful to employers, employees and the economy as the original legislation.

Our state Chamber has developed a card check resource page online where you can find information about this critical issue, including a toolkit, resources to take action, and information on how to join our ever-growing coalition aimed at preventing card check from becoming law.  Click on the following link to check out the card check resource page on the North Carolina Chamber Web site: www.ncchamber.net/SaveVotes.

Congress Considers Various Tax Proposals Affecting Employers

Harmful New Financial Regulations on the Move in Congress

A significant vote by the US House is currently pending on H.R. 4173, which includes the Consumer Financial Protection Agency (CFPA) Act – with a final vote on the bill possible as early as Friday, Dec. 11th.  The CFPA Act, costing more than $1 billion according to the non-partisan Congressional Budget Office, would create an entirely new federal agency and consolidating the mandates and powers of federal financial regulators.  The authority of the agency, however, would extend beyond traditional financial services and products to virtually any entity that provides financial products, advice or services.

While our state Chamber agrees that consumer protection reform needs to be implemented, we believe that regulatory reform has to be balanced to ensure actual protection for consumers without unintended consequences that would harm employers and the economy.  Because our Chamber is concerned that the bill goes far beyond the stated intentions of protecting consumer financial transactions, we have sent letters outlining our concerns and opposition to all members of North Carolina’s congressional delegation.

The CFPA Act has already passed the House Financial Services and Energy and Commerce Committees. One of the most contentious amendments that passed during committee consideration was introduced by Congressman Mel Watt (D-NC) in the House Financial Services Committee. The amendment will allow federal regulators to determine, on a case-by-case basis, whether a particular state law unfairly restricts a federally chartered bank and puts it at a disadvantage to competitors in that state.

In the US Senate, Senator Christopher Dodd (D-Conn) introduced a version of CFPA, which was referred to the Senate Banking Committee. The committee began introductory remarks and consideration during the week of Nov. 19th, but no votes have been taken yet in committee.

Click here to find out more about the CFPA Act, along with resources to contact your representatives.

Tax Relief for Employers Passes with Chamber's Support

Recently a bill was signed into law that included extending the Net Operating Loss (NOL) Carryback tax provision, providing relief for many employers struggling to weather the economic storm and encouraging critical investments.  The provision in the bill will extend the NOL Carryback period to five years from two years for all companies.  It was part of H.R. 3458, legislation that extended unemployment benefits and a popular tax credit for homebuyers.

Our Chamber recognizes and thanks all of the members of our delegation who co-sponsored NOL Carryback legislation to protect jobs:

• Sen. Richard Burr (R-NC)
• Sen. Kay Hagan (D-NC)
• Rep. Virginia Foxx (D-5), Republican
• Rep. Sue Myrick (D-9), Republican
• Rep. Bob Etheridge (D-2), Democrat
• Rep. Brad Miller (D-13), Democrat
• Rep. Patrick McHenry (D-10), Republican
• Rep. Howard Coble (D-6), Republican
• Rep. Walter Jones (D-3), Republican

To participate in a FREE webinar on Dec. 16th about how businesses can utilize this new NOL Carryback provision, click here.

Chamber Weighs in on Ongoing Health Care Reform Debate

The topic of national health care reform has dominated Congressional debate and activity for months.  A health care reform bill has already passed the US House and the US Senate continues to work on passing its version of health care reform. 

The North Carolina Chamber has weighed in with our representatives in Congress on both of these bills on behalf of employers, outlining our opposition to employer mandates; tax increases on small businesses, manufacturers and insurance providers; and a government-run health insurance plan that would increase the federal government’s role in our health care system.  There is also a harmful provision in one of the bills that would benefit lawyers who sue doctors, hospitals and other providers that could serve to increase the costly practice of defensive medicine.   

Health care is a complex issue that poses significant challenges for North Carolina employers, families, and our state’s economic future.  Decisions and outcomes that ultimately result from the national health care reform debate will have long-lasting and far-reaching effects.  While our state Chamber commends the work and involvement of our members in Congress in regard to comprehensive health care reform, we are very concerned that the bills under consideration will not lower health care costs for North Carolinians and will actually harm businesses in our state.  We also believe the cost of these proposals will have a negative effect on our national deficit and economy.

The North Carolina Chamber is committed to working with our employer members and representatives in Washington to produce meaningful health care changes that will expand coverage to more North Carolinians; rein in increasing health care costs; promote wellness, prevention and personal responsibility; improve quality of care, and support innovation.  We believe that meaningful health care reform should:

• Support incentives that reward providers based on outcomes and overall care

• Reward consumers based on health lifestyle choices and smart health care decision-making. 

• Identify and increase efficiencies

• Allow employers, employees and other health care consumers to keep the coverage they currently have if they are satisfied with it and want to do so

• Help struggling employers with rising health care costs

To learn more about each of the health care bills that have passed the US House and Senate and how North Carolina members of Congress voted on the bills, click here. 

What is Next in the Health Care Reform Debate?

In order for Congress to pass comprehensive health care reform, US Senate leader Harry Reid must garner the 60 votes necessary to pass the bill on the Senate floor.  Reports indicate that moderate Democrats in the Senate are still split on two key issues: the government-run public option and a provision providing for funding of abortions. 

Several sources are reporting that a potential deal was reach on Monday, Dec. 7th, that would eliminate the public option from the Senate health care reform bill.  The compromise allegedly will appease both ends of the Democratic political spectrum, designed to expand insurance coverage without creating a new government-run program.  Under the compromise, the public option would be removed from the bill and replaced with a new government-administered national insurance plan similar to the Federal Employee Health Benefits Plans that serves members of Congress and federal workers.  In addition, people 55 and older would be able to “buy-in to Medicare” and purchase coverage from the government program for the elderly.

If the full Senate does in fact pass its version of a health care reform bill, a conference committee would be formed with representatives from both the House and Senate to work out the differences between the two bills.  Once a compromise is agreed upon by the conference committee, it will need to be approved by both the House and Senate.

EPA vs. Congress: Where Does Energy Policy Stand in DC?
Proposals Would Alter the Ways We Make & Use Energy

Climate change legislation is another topic getting a great deal of the nation’s attention recently.  Proposals aimed at regulating energy-producing emissions and reducing climate change have been introduced for consideration in both Congress and the Environmental Protection Agency (EPA).

Energy Proposals Could Disadvantage States Like NC

The US House has already passed a complex energy bill – by only seven votes.  H.R. 2454, the American Clean Energy and Security Act – also called the Waxman-Markey bill after its co-sponsors Reps. Henry Waxman (D-CA) and Edward Markey (D-MA) – sets national limits on so-called “greenhouse gasses,” creates a “cap-and-trade” system for emissions permits for employers that release the gases, and attempts to change how individuals and employers use energy.  The cap in the House bill would force a 17 percent decrease in emissions (below 2005 levels) by 2020 and 83 percent decrease by 2050.

There are also currently several climate change proposals in the US Senate – with one version already having passed the Senate Environment and Public Works Committee (S. 1733).  The Senate bill that passed committee was introduced by Sens. Kerry (D-Mass) and Boxer (D-CA).  It would require a ceiling on greenhouse emissions beginning in three years – to be tightened annually so that emissions would be 20 percent lower in 2020 than they were in 2005.  Emissions would have to be 83 percent lower by 2050 in S. 1733.  While the long-term cuts are the same as required by the House, the Senate bill has a faster early ramp-up.  Senate leadership has indicated that climate change legislation will not be voted on in the Senate until the spring of 2010.

It is the North Carolina Chamber’s goal to make sure that if climate change legislation passes Congress it will not put North Carolina at a competitive disadvantage with other states, or the United States at a competitive disadvantage with other countries.  We want to protect both our environment and our economy and don’t believe these goals are mutually exclusive.

At this point in the process, our state Chamber has some serious questions and concerns about the climate change proposals pending in Congress. 
 
For example:

1) Is it technologically feasible and is it economical to achieve the proposed emission reductions targets within the proposed timeframes? 

2) How much will energy costs increase for North Carolina employers and families?  Currently, there are wide variations in the cost estimates associated with the different climate change proposals that are out there. During these challenging economic times, the impact of rising energy costs needs to be carefully considered.

3) What will the impact of these climate change proposals be on jobs, particularly for our state?  A report released by the non-partisan Congressional Budget Office (CBO) earlier indicated that the House bill (Waxman/Markey) would result in significant job losses AND that those losses will hurt some regions of the country much more so than others.  North Carolina has been blessed with affordable, reliable energy in the past, which has served to generate economic development and good jobs in our state versus others where the cost of energy may be much higher. 

4) When considering alternative energy sources, a one-size-fits-all renewable energy standard unfairly disadvantages certain states and regions, including North Carolina and the southeast.  The reality is that each state has unique renewable capabilities due, in large part, to climate and geography.  Any climate change proposal that focuses on lowering greenhouse gas emissions and meeting renewable energy demand should include nuclear energy to achieve that goal.

These are the types of issues and questions that the legislative process has to address.  Climate change proposals are so broad and would make such major changes in the way we make, distribute and use energy that they need and deserve intense examination and debate.  As these proposals continue to work their way through Congress, our state Chamber looks forward to working with North Carolina’s elected representatives to make sure any climate change law that passes balances our environmental, energy and economic needs.

EPA Action Could Undermine Chance to Shape Energy Policy

In addition to what’s going on in Congress in regard to climate change legislation, recently the EPA has taken action on the controversial issue by announcing on Dec 7th an “endangerment” finding that triggers regulation of greenhouse gas emissions under the Clean Air Act.  This action by the EPA could circumvent the ongoing congressional debate on this issue.  By declaring greenhouse gas emissions a threat to public health and welfare through its endangerment finding, the EPA is paving the way to begin regulating carbon emissions across the board, including imposing new, costly regulations on manufacturing plants, hospitals and libraries under the Clean Air Act. 

To add to the regulation firestorm around the issue of climate change, in September the EPA proposed a “tailoring rule” that establishes a process to begin regulating smaller facilities.  The EPA proposes to issue permits that require facilities such as manufacturing plants, power plants and refineries to demonstrate they are using the best technologies to minimize greenhouse gas emissions.  It also allows the EPA to immediately begin considering lowering the threshold of greenhouse gas emissions at its discretion, further expanding the organization’s regulatory powers.  The EPA’s proposed rule is subject to a 60-day comment period, which ends on December 28, 2009.

Receive Timely ‘Issue Alerts’ Based on YOUR Interests!

With so many issues important to North Carolina employers, employees and our state’s future getting attention in Washington, DC, our state Chamber encourages its members to stay informed and involved.  If you would like to receive up-to-date News or Issue Alerts based on YOUR individual interests, please email Kerri Burke, Director of Communications, at kburke@ncchamber.net, indicating which topics are most important to you.  We respect your time AND your Inbox, so we want to provide you with an opportunity to tell us what to write to you about.  When you email us, simply list YOUR topics from the list provided below: 

*Education
*Labor Law/Unions
*Workers’ Compensation
*Environmental
*Legal (Tort) Reform
*Regulatory Environment
*Taxes
*Infrastructure/Transportation
*Infrastructure/Water
*Infrastructure/Energy
*Infrastructure/Telecommunications

Register NOW for the Networking Event of the New Year!
Economic Forecast Forum Includes Session on Health Care

On Monday, Jan. 4th, the North Carolina Bankers Association and our state Chamber will host our 8th Annual Economic Forecast Forum at the Progress Energy Performing Arts Center in Raleigh.  This high-profile sell-out event begins at noon – with a preliminary Special Session on Health Care offered at 9:30 a.m.

Featured presenters at the Economic Forecast Forum include:

• David Darnell, President, Global Commerce Banking, Bank of America
•  Elizabeth Duke, Governor, Federal Reserve System
• John Connaughton, professor of Economics, UNC-Charlotte.

Prior to the economic forecast portion of the event, we’ll hear from experts and special guests about the latest on health care reform.  NC Secretary of Health & Human Services Lanier Cansler has already confirmed that he will participate in the Special Session to talk about the impact of health care reform legislation on health care spending and access in our state.  Other special guests and industry experts will also discuss changes that Congress has made at the federal level to America’s health care system, or the status of health care reform efforts if no bill has passed.  Registration for the Economic Forecast Forum includes the Special Session on Health Care.  

Don’t miss the 8th Annual Economic Forecast on Jan. 4th in Raleigh or the Special Session on Health Care!  Reserve your spot now online at: www.ncbankers.org.  Don’t wait until the holidays are here because there may not be any seats left!