May 2011 - Retail Association of Nevada

May 2011
Budget Brawl Brewing
T
he 2011
Legislative
Session
is slowly
becoming the session of
the disingenuous. You hear
the word tossed about in
press conferences, private
conversations, news stories,
committee hearings and even
on the Floor of the Senate
and Assembly Chambers.
The tension is palpable
between those legislators
who are supporting Governor
Sandoval’s budget and
those who are not. If the
recent Committee of the
Whole meetings are truly
an indication on who will
hold their position when the
revenue discussion comes,
then the Republican minority
has given Senate Majority
Leader Horsford (D-Clark) and
Speaker Oceguera (D-NLV)
more than a little heartburn.
It was widely believed that
when making the committees
of the whole take up the
state general fund budget
discussions, members of the
minority party would have
to back pedal or change
their positions. To further
that goal, “straw polls” were
attempted on the floors of
both chambers. However, the
minority party in both houses
refused to follow the “plan”
and stood their ground. The
dramatic change in how the
By Bryan Wachter
budgeting process is done
(moving it to the Committees
of the Whole rather than the
Assembly Committee on Ways
and Means and the Senate
Committee on Finance) has set
a new mood in the building,
leading to a constant clashing
of ideals and verbal tirades.
But alas, attempting to
put anything in stone while
the legislature is in session is
nothing more than an act of
futility. This is why we would
like to point out some of the
facts regarding the rumors
that are being passed around
about taxes.
First, a disclaimer: the Retail
Association of Nevada is not
advocating increasing taxes as
a way to balance the budget.
We believe government is
hurting because business
is hurting and that Nevada
currently has an economic
problem, and not a revenue
problem. However, in an
effort to keep our members
up to date, we are providing
a summary of the suggested
revenue alternatives and their
potential addition to the state
general fund.
The first proposal would
be to extend the sunsets on
the taxes that were passed
during the 2009 Legislative
Session and are set to expire
on June 30, 2011. These taxes
include the Mining Claims Fee,
the mining prepayment, the
raise of the MBT from 0.63%
on payroll over $250,000.00
(the bill also lowered the
MBT on the first 250,000 in
payroll from 0.63% to 0.5%)
to 1.17%, the doubling of the
Business License Fee, and the
increase in the Nevada sales
tax. In total, were the sunsets
to be extended, the increased
revenue for the biennium
would be $705,500,000.00.
Another option that could
be seen is a corporate income
tax; under the current proposal,
the rate would be set at 4.5%
on all corporate income over
$500,000.00. Because Nevada
does not currently track
this information, there is no
projection on the revenue
amount this might raise.
The last option to be
Continued on page 10
INSIDE
Legislative Update........................2
Proposed Legislation Ignores
Source of Meth in Nevada............5
To Lead a Group............................8
Member Spotlight:
Desert Dental................................9
No Increase in Minimum
Wage/Daily Overtime.................10
First Taxable Sales
Report for 2011...........................11
Obama Signs Measure
Repealing Expanded Tax
Form Requirement.....................11
Retail Association of Nevada • www.rannv.org
Legislative Update
By: Liz MacMenamin, Vice President of Government Affairs, Health Care and Boards & Commissions
Lea Tauchen, Senior Director of Government Affairs, Grocery and General Merchandise
Bryan Wachter, Director of Government Affairs, Taxation, Transportation, and Workers’ Compensation
As explained in our week nine edition of The Express Lane, Friday, April 15th was the deadline for bills to pass
their committee in the house of origin. Bills that failed to come out of committee are not allowed further action
however, the ideas and language may be amended into bills that did pass this deadline. Bills may also be declared
exempt from deadline at the agreement of the Speaker of the Assembly and the Senate Majority Leader. For this
update we are providing a list of the important bills that failed to meet deadline and a list of the important bills
that did meet deadline. For a total list of all bills RAN is following and their status please visit www.rannv.org.
No Further Action
is Allowed On:
AB89: This bill would
require a mandate for
health insurance to offer
acupuncture treatments.
AB90: Prohibits employers
from discriminating
against an employee
because of a physical
characteristic such as
height or weight.
AB218: Revises provisions
governing the application
of sales and use taxes to
bottled water.
AB234: Prohibits any
candle, air additive, air
fragrance, air freshener or
potpourri in any place of
public accommodation.
AB293: Requires a person
who owns or controls the
premises on which an
injury or death allegedly
occurred to produce
certain evidence under
certain circumstances.
AB333: Increases taxes
on intoxicating liquor and
tobacco products.
AB399: Imposes a fee
on sales by fast-food
businesses of certain items
of prepared food.
AB421: Sponsor agreed
to pull this legislation after
2
◆
determining this was more
an issue to be addressed
by the FDA.
AB423: Bill that would
allow private citizens or
entities, such as unions,
to request an Attorney
General Opinion.
AB465: Enacts provisions
relating to consumer legal
funding.
SB203: Sponsor pulled her
bill as she did not have to
votes to move in out of the
committee.
SB224: This legislation
would have required
that the State Board of
Pharmacy regulate as a
controlled substance the
“fake cocaine”.
SB253: This was another
insurance mandate to
include in insurance
a smoking cessation
program.
SB290: Requires certain
disclosures in an offer for
a sale or lease of certain
goods or services pursuant
to an automatic renewal
contract.
SB332: Revises provisions
governing compensation
for overtime.
SB468: Transfers the
duties of Weights and
Measures from the State
Department of Agriculture
to the department of
motor vehicles.
Further Action is
Allowed On:
AB21 would require the
Boards and Commissions
in Nevada to be subjected
to the same standards
of operations as other
Executive branch agencies.
This is a piece of good
public policy and RAN
would like to see this will
make it through the final
days of this session.
AB56 and AB286: Both
of these bills deal with
Medicaid fraud in our state.
AB56 gives the Attorney
General, acting through
the Medicaid Fraud
Control Unit, to be able
to subpoena documents
and records in cases of
suspected Medicaid fraud.
AB61would establish
an entity to study and
make recommendations
to Legislators regarding
the impact of controlled
substance abuse in
Nevada. This group was
the “Methamphetamine
Working Group” appointed
originally by Governor
Gibbons. There was
enough evidence
regarding abuse of these
substances to include
them in their study going
forward. RAN supports this
group and will work with
them over the interim.
AB142: This bill originally
proposed to increase the
monetary threshold for the
penalty classification of
theft and related property
offenses. The Category D
level would be raised from
$250 to $450; the Category
C level would be from
$450 to $3500 instead of
$2500; and the Category
B level would be bumped
to anything over $3500.
This bill was amended
to increase the felony
threshold to $650 (other
levels remain the same) to
further reduce the number
of crimes that would
mandate prison.
AB149 would allow
plaintiffs’ attorneys to file
medical malpractice claims
without affidavit of expert
to support such claim.
This is a change in how
the court has handled this
Continued on next page
www.rannv.org • Retail Association of Nevada
Legislative Update Continued
in the past. RAN opposes
this issue as it would
allow unsubstantiated
claims to be filed against
a practitioner without
evidence.
AB170: This bill originally
proposed to require
retailers who sell cigarettes
to post signage regarding
the dangers of smoking
tobacco during pregnancy
in a conspicuous location.
The contents of the
warning may be included
on any other required
sign. This requirement was
amended to reduce the
size of the sign (from 8.5
by 11 to 8.5 by 5.5 or half
sheet of paper) and reduce
the font accordingly. The
March of Dimes will also
be printing 2,000 signs on
card stock for distribution
to tobacco retailers.
AB211: This bill proposes
to add “gender identity
or expression” to the
list of categories upon
which discrimination is
prohibited. It would also
allow employers to require
employees to adhere to
reasonable workplace
appearance, grooming and
dress standards.
AB261: This bill originally
proposed to increase the
monetary limit from $5,000
to $9,000 in actions for
small claims adjudicated
in a justice court. AB261
was amended to change
the upper limit on small
claims actions to $7,500
and impose a $125 fee for
preparation and filing of
an affidavit and order if the
sum exceeds $5,000 but
does not exceed $7,500.
AB286 would establish
an Advisory Committee
consisting of three
members that are
appointed by the
Administrator of the
Division of Welfare and
Supportive Services of
the Department of Health
and Human Services,
the Administrator of the
Division of Health Care
Financing and Policy of
the Department and the
Attorney General. RAN
supports this policy.
AB352: This bill
originally proposed to
allow a person who
suffers damage due to a
deceptive trade practice
to bring a civil action to
recover statutory damages
of up to $5,000 per act
or violation. This bill also
makes it a deceptive trade
practice to knowingly take
advantage of someone
with the inability to protect
themselves. AB352 was
amended to remove the
ability to bring a civil
action to recover statutory
damages and to clarify
the language describing
someone with the inability
to protect themselves.
AB427: This bill originally
proposed to establish
a five-cent deposit to
be paid and refunded
on glass, plastic and
aluminum beverage
containers sold in
Nevada. Retailers would
be responsible for
collecting the deposit
from the consumer and
refunding the deposit
to the consumer when
they returned their empty
container. AB427 was
amended to make already
established recycling
centers responsible
for accepting empty
containers and refunding
the consumer the
deposit. However, due
to the large fiscal note
attached to this bill, the
Assembly Committee on
Natural Resources voted
to Re-Refer, Without
Recommendation, to the
Assembly Committee
on Ways and Means for
potential future action.
SB34 is a bill that updates
Nevada’s sales and use
statutes to bring Nevada
back into compliance with
the Streamlined Sales and
Use Tax Compact. Nevada
continues to be a member
of the governing board.
This bill has also passed the
Senate and is currently in
the Assembly Committee
on Taxation.
SB210: This bill originally
proposed to require a food
establishment (including
retail and restaurants) to
comply with nationally
recognized guidelines
for the manufacturing
and processing of food.
It would also require
testing of such food by an
independent laboratory
at the cost of the food
establishment.
SB210 was amended to
define food manufacturer
and food processing
(which removed retail
and restaurants) and
clarified the conditions
under which independent
food testing would be
required. The Nevada
Manufacturers Association
is continuing to work on
the language by proposing
a two-year sunset that
would allow federal
Food Modernization Act
regulations to be complete
and replace this statute.
SB267: This bill originally
proposed to require
the owner or lessor of
a copier, fax machine
or multifunction device
to encrypt or destroy
personal information
stored on its hard drive
upon relinquishing
ownership or physical
control of the equipment.
SB267 was amended to
change the term lessor
to the service provider
to clarify that the person
responsible is the person
who provided the
equipment, not who
necessarily provided
the financing for the
equipment.
SB301: This is a large bill
that updates and clarifies
language regarding the
Dairy Commission. Most
of the provisions do not
Continued on page 4
◆3
Retail Association of Nevada • www.rannv.org
Legislative Update Continued
concern the retail industry,
except for Section 29.
This section will allow
retailers to discount dairy
products two days before
their expiration date. This
section also modifies the
cost determination process
to more accurately reflect
how the Commission
determines costs during
an audit.
SB329: This is Senator
Breeden’s bill that would
have required a doctor
to ask all patients if they
wanted their diagnosis or
symptoms to be added
to the prescription label.
The Senator agreed to
work with all involved and
has amended her bill to
require a sign in a doctor’s
office advising patients of
the ability to request this
information be included.
Pharmacy was not
included or required
to place this information
on the label if it is not
provided by the doctor,
which is the current
practice at this time. RAN is
neutral on this bill.
SB331: This bill prohibits
an employer from
obtaining a consumer
report to evaluate
a potential/existing
employee unless the
report is required by
law or you believe the
person engaged in illegal
activity reflected in the
report or the information
in the report is related to
the employees’ duties or
position.
Dear Members,
SB491 is a bill that
removes the sunset on
the tax package approved
by the 2009 Nevada
Legislature. Among
other items, it keeps the
Modified Business Tax at
1.17% for all wages above
$250,000 annually and .5%
for the first $250,000. SB
491 also keeps the state
business license at $200
annually. n
April 25, 2011
During the week of April 18th, Democrat Leadership determined that the budget process deserved an “open hearing”
with all legislators in attendance. “Committee of the Whole” meetings are then initiated and can be viewed by the public on
the LCB website. Because of these meeting, all committees were cancelled last week while this process unfolded. The concept
is a honorable one but the outcome was not exactly what they had hoped for. There were lengthy hearings on the education
budget, which was presented by the Governor’s office and opposed by representatives from the education community. Andrew
Clinger, Budget Director and Heidi Gansert, Chief of Staff for Governor Sandoval presented the proposed budget to the entire
committee and the presentation was clear and to the point.
Then higher education had their turn at the table to discuss how the Governor’s budget will decimate higher education
if they have to institute the cuts that are proposed.
The hearing in the Assembly on Monday, April 18th, tested the endurance of the members by continuing on until about
midnight. The Republicans made it very clear that they will be supporting the Governor’s recommendation and the Democrats
showed their frustration regarding this stance. One legislator made some snide remarks about the Republican Caucus and their
propensity to support the Governor’s budget. This meeting quickly dissolved and it became clear that there was not going to be
any compromise. Republicans made it clear that the caucus will be holding until Democrats are willing to discuss reforms with
them and there will be no movement from their caucus.
This process will continue during the week of April 25th with the legislators hearing from the Department of Health and
Human Services and the committees that were scheduled will again be canceled.
Both houses are trying to meet the deadline to have bills out of the house of origin which is April 26th. If a bill is not out
of the original house it will be “dead” and it our understanding that both the Senate and the Assembly have a very long list of bills
to be heard on the floor. We will be updating the “bills still alive” in future updates that you receive via email.
Sincerely,
Liz
Liz MacMenamin
Vice President of Government Affairs, Health Care and Boards & Commissions
4
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www.rannv.org • Retail Association of Nevada
Proposed Legislation Ignores
Source of Meth in Nevada
NEVADA HAS A METH ABUSE PROBLEM, NOT A METH PRODUCTION PROBLEM
By Liz MacMenamin
(Editor’s Note: This bill, SB 203, was withdrawn by its sponsor Senator Sheila Leslie. However, since no bill is actually dead until
ten days following the end of the Legislative Session, we are running this op-ed to educate you about the issues.)
P
roposed
legislation
that would
require all
Nevadans to obtain a
doctor’s prescription to
buy certain cold, cough
and allergy medications
is intended, according to
proponents, to curb meth
abuse here. They cite grim
statistics concerning the
impact of meth abuse and
accuse those who oppose
their legislation of being
uncaring profit mongers.
The legislation,
however, does absolutely
nothing to address meth
abuse. Instead, it attempts
to stop meth production
in Nevada by limiting
access to medications
that can also be used
to produce meth in
Nevada. Proponents of
this bill ignore the fact
that virtually no meth is
produced here; in 2008,
there were only 4 meth
lab seizures in Nevada
according to federal law
enforcement agencies.
Instead, meth is brought
into the state from Mexico
and other areas.
So far, only Oregon
and Mississippi have
passed similar legislation
requiring prescriptions for
cold, cough and allergy
Liz MacMenamin
medications containing
pseudoephedrine (PSE).
Mississippi’s legislation
took effect less than a year
ago, so its success can’t
yet be tracked. In Oregon,
supplies of meth have
not declined since similar
legislation took effect there
in 2006. According to the
Office of National Drug
Control Policy, which is
part of the National Drug
Intelligence Center with
the U.S. Department of
Justice, meth availability
initially declined but
by late 2008, supplies
returned to previously
high levels. According
to the Department of
Justice, an abundant
supply of Mexican ice
methamphetamine in
Oregon has fueled rising
meth abuse since the
second quarter of 2008.
We already have
effective legislation
that works to curb
meth production in our
state. The evidence is
clear and not disputed.
Methamphetamine
lab seizures in Nevada
decreased 95 percent over
the past 7 years from a
high of 81 in 2002 to only
4 laboratories in 2008. This
reduction is attributable
to moving medications
containing PSEs from store
shelves to behind-thecounter and requiring that
consumers show pictured
ID and sign a log book to
purchase these products.
Forcing Nevada allergy
sufferers to go to the
doctor for a prescription
for common over-thecounter medications will
do absolutely nothing
to stop meth from being
brought into the state.
Instead, it will impose huge
financial costs on ordinary
Nevadans, particularly the
nearly 600,000 Nevadans
who have no health
insurance coverage to
offset the high cost of a
doctor’s visit. Their costs
to obtain relief will go up
about 850%, from about
$11.50 to about $110.
We do not need
additional legislation
that will impose severe
limitations on Nevadans
who need inexpensive
medications to treat
common cold and
allergy symptoms. We
don’t need legislation
that will cause additional
financial hardship to the
20% of Nevadans who
have no health insurance.
We don’t need legislation
that will cause huge strains
on our access to medical
care as doctors’ offices
become over-burdened
with cold and allergy
patients. We don’t need
legislation aimed at a nonexistent meth production
problem. n
UPCOMING
EVENTS
NRF Loss Prevention
Conference &
EXPO 2011
June 13–15, 2011
Dallas, TX
NRF 76th Washington
Leadership Conference
June 20–22, 2011
Washington, DC
Shop.org Online
Merchandising
Workshop 2011
July 11–13, 2011
San Diego, CA
◆5
Retail Association of Nevada • www.rannv.org
Nevada Notes
Business picking up,
but commercial
and retail space
not filling
Retail sales picked up in
Las Vegas in 2010, but that
isn’t showing up in demand
for retail space in 2011,
according to research firms
tracking the market.
Commercial real estate
across the board isn’t
faring much better despite
improvements in tourism and
gaming and a drop in the
jobless rate.
The retail vacancy rate
stood at 10.4 percent at
the end of March, up from
10.2 percent at the end of
December but down from
10.7 percent in the first
quarter of 2010, according to
Applied Analysis. That’s the
first quarterly increase after
three consecutive quarters of
decline, the firm said.
The lack of job creation
combined with high
consumer debt levels, rising
gasoline and food prices
plus the move to Internet
shopping have hurt the
retail market.
Applied Analysis
attributed the increased
vacancy in part to store
closings for Ultimate
Electronics, which recently
filed for bankruptcy
protection.
Applied Analysis Principal
Brian Gordon said the retail
market will be volatile for the
next year and rents are likely
to continue to decline.
VegasInc.
6◆
Income tax bill met
with opposition
The hearing into
Assemblywoman Peggy
Pierce’s proposed corporate
income tax revealed very little
common ground between
those for and those against.
Assembly Bill 336
would impose a 4.5 percent
corporate income tax on
businesses with net profits in
excess of $500,000 a year.
Craig Stevens of the
Nevada State Education
Association said only a small
percentage of businesses
would pay but the tax would
pump $1.2 billion into state
coffers during the biennium.
A series of business
representatives testified the
corporate income tax isn’t
the way to go. Bryan Wachter
of the Retail Association of
Nevada said if a corporate
income tax is added to the
business owner’s burden,
“something else will have to
be cut.”
Wachter said raising
prices isn’t an option for
most small businesses
because of competition
— particularly from the
Internet. He said other costs
such as mortgages or rent
and utilities aren’t under the
businessman’s control. He said
that leaves employee pay.
“When business is faced
with paying this new tax,
employees will face fewer
hours and lower wages,”
Wachter said.
The committee took
no action on the measure
but Chairwoman Marilyn
Kirkpatrick D-Las Vegas, asked
Vilardo to meet with legal
staff to repair some of the
technical issues she raised.
Nevada Appeal
Tivoli Village
would add Summerlin
retail options
The developers of Tivoli
Village submitted plans to
Las Vegas to build a 750,000
square-foot indoor mall and
100 condominium-type units
across from its mixed-use
development scheduled to
open this month.
The project, an effort to
provide retail in Summerlin
and adjacent areas that
analysts said is lacking, is
scheduled to open by
spring 2015.
It provides competition
for the half-built Shops at
Summerlin Centre, where
work was halted in October
2008 amid the recession and
its developer General Growth
Properties going through
bankruptcy proceedings.
GGP spun off Summerlin
and Summerlin Centre to
the Howard Hughes Corp. in
November.
VegasInc.
Reno council seeks
rules to clean
business blight
The Reno City Council
has asked for new ordinances
and regulations to put the
brakes on drug paraphernalia
sales, liquor stores masking as
convenience markets, limiting
tattoo parlors to certain areas
of the city and cracking down
on small slot machine parlors.
After months and even
years in complaining about
the harmful aspects of
these businesses, the City
Council received a report on
how other cities deal with
these issues.
Then council members
asked for the city attorney’s
office to draw up ordinances
that would be enforced
citywide.
The city council wants
to ban drug paraphernalia
sales if legally possible. If not,
it wants these goods sold
in a separate area of a store
where minors are not allowed
and require a special use
permit. The city council can
set conditions for that permit,
which costs a minimum of
$4,500 to obtain.
RGJ
Town Square retail
center foreclosed
upon by lenders
Town Square
entertainment and retail
center on Las Vegas Boulevard
has been foreclosed upon by
lenders and leasing activity
will be managed by Forest
City Enterprises.
While Town Square’s retail
tenants and restaurants
appeard to be doing strong
business, the 300,000-squarefoot office component of
the mixed-use development
suffered from extremely low
vacancy. The largest office
Continued on page 9
www.rannv.org • Retail Association of Nevada
National Notes
BROAD SENATE
PRIVACY BILL WOULD
SUBJECT CONSUMERS TO
BLIZZARD OF NOTICES
National Retail
Foundation is warning
lawmakers that privacy
legislation introduced in the
Senate is overly broad and
could subject consumers to
a blizzard of privacy notices
that would do little to prevent
identity theft or address other
serious privacy concerns.
“We appreciate senators’
interest in privacy but they
should focus on genuine
problems rather than overregulating Main Street
businesses,” NRF Senior
Vice President and General
Counsel Mallory Duncan said.
Senator John Kerry,
D-Mass., introduced S. 799,
the Commercial Privacy Bill
of Rights Act, with Senator
John McCain, R-Ariz., as the
measure’s lead cosponsor.
The Kerry-McCain bill would
apply to nearly all data about
consumers collected by
businesses or their service
providers regardless of
whether the information is
collected online, through
mobile devices such as cell
phones, or in person in a
store. Customers would have
to be able to “opt out” of
having even non-sensitive
information collected
and would be offered an
undefined “robust” opt
out choice for some data.
Customers would have
to proactively “opt in” for
businesses to be allowed to
collect other, more-sensitive
categories of information.
Severe restrictions would
be placed on use of even
innocuous information, with
the Federal Trade Commission
given broad authority to
develop regulations. Violators
could face civil penalties of up
to $3 million.
Retailers are particularly
concerned about the bill’s
apparent requirement to
provide privacy notices to
customers shopping in bricksand-mortar stores, Duncan
said. Stores could conceivably
be required to hand out
written notices each time a
customer comes to a cash
register.
NRF
COTTON PRICES WILL
BE A CHALLENGE
The high price of cotton is
one of the biggest challenges
apparel retailers face this year.
Apparel prices have declined
for the past two decades as
more production was shifted
outside of the United States. But cotton prices in
March hit their highest levels
in decades after floods in
Australia and Pakistan and
freezes in China wiped out
farmers’ crops.
That means consumers
will see rising clothing prices
for the first time in more than
20 years. There are predicted
increases of 5 percent to
20 percent.
Higher apparel prices
will make it difficult to keep
customers spending in an
environment where they’re
also facing higher fuel and
food costs.
Dallas Business Journal
Baby Formula
Targeted By Retail
Theft Rings
Infant formula has
become such a hot commodity among sophisticated
theft rings that it’s been called
“liquid gold.”
The scale of baby formula
shoplifting is so vast that it
has become an interstate
problem, drawn in the
FBI and Immigration and
Customs Enforcement, and
forced chain stores to install
elaborate anti-theft devices.
Federal legislation has even
been introduced that
would make stealing baby
formula subject to federal
racketeering laws.
The baby food powder
has become a formula for
organized crime because it
sells at prices ranging from
$15 to $30 a can, a relatively
expensive item that can give
theft rings a good profit.
It is a problem on both
coasts and hits small stores as
well big chains.
“Grocery chains will tell
you that formula is targeted
so often that in some cases
they have locked it up, moved
it behind the cash register,
strategically put it on the
floor and in some cases, they
put a limited supply on the
shelves,” said Joe LaRocca of
the National Retail Federation.
On a grander scale, the
“Hernandez Group” reportedly
operated an organized retail
theft ring for four years
in California and Oregon,
stealing $2.5 million in infant
formula from Safeway stores
until police busted the ring in
December 2010, according to
court documents.
In each type of store,
different products are targets
of theft rings. Hardware stores
find it’s usually power tools
and drill bits that are lifted,
while clothing stores have
a hard time hanging on to
their denim, and drug stores
see razor blades and diabetic
strips walking out of their
stores.
Drug dealers sometimes
use the powdered formula
to dilute heroin and
methamphetamine or to
stretch the product when
supplies run low.
However, experts say that
more often than not, formula
is stolen because of its high
market demand among
consumers rather than
drug dealers.
There are other dangers
in formula theft besides the
economic loss to stores. Baby
formula, which has a shelf life,
can end up in rodent infested,
hot warehouses. Thieves
might even fudge expiration
dates to resell the formula.
In March, a group of
U.S. Senators introduced
legislation to crack down on
the theft of infant formula,
prescription drugs and
Continued on page 8
◆7
Retail Association of Nevada • www.rannv.org
To Lead a Group
I
NEW RESEARCH OFFERS GUIDANCE TO SUPERVISORS IN THEIR LEADERSHIP ROLES
By James Larsen, Ph.D.
f you ask a mother
who has raised
two children to
explain how it’s
done, you’re likely to get
quite a dissertation. There’s a
lot to do and a lot to know,
and as you listen, you’ll
notice a theme pervading
her description: children
make known their needs, and
mothers provide for them.
Children cry to get their
diapers changed. They fuss
to get dinner. They shout to
insist upon more freedom,
and they write home to get
money. In management terms,
this is called individualized
leadership. Mom, the leader,
responds to needs made
known by her children and
personally provides necessary
resources: time, attention,
food, money, and so on.
If you ask a mother who
has raised ten children to
listen to this description, she’s
likely to have strong reactions
to it. If she identifies with
the individualized leadership
theme that each child’s needs
must be monitored and
tended to by the mother, then
she’s likely to be reminded
of feeling like a colossal
failure as her family grew up.
She was a mother who was
completely overwhelmed
by the needs of her children,
unable to respond to them,
and consequently neglectful
of them. Such a mother would
probably not sit still very
long for this discussion and
try to change the subject.
Mothers with lots of children,
8
◆
like managers with lots of
subordinates, are poorly
served by an individualized
leadership focus. Fortunately,
there is an alternative, both for
mothers and managers. It is a
group leadership focus.
Imagine Rose Kennedy,
the mother of President John
Kennedy and seven other
children, occupying her place
at a large dinner table when
all of her children were young.
Her opportunity and her goal
would be to put this family to
work. She has to accomplish
raising the children, and she
can’t do it alone. What would
she do? What would she say?
These aren’t hard questions.
She would remind the children
that they were Kennedys.
They were special. No other
family was quite like them, and
they had a responsibility to
watch out for each other and
to nurture their brothers and
sisters. They were to encourage
them and help them. They
were a team. Each child would
feel called to a higher purpose
and would feel responsible
for the welfare of his/her
siblings. Testimony from the
now-grown Kennedy children
bears this out. Rose Kennedy
and the Kennedy clan are an
example of a group-centered
leadership approach to raising
a family, and we can copy this
in our retail businesses, but
group-centered leadership in
business is not the norm.
Managers have been
coached for many years to
adapt their leadership to
each subordinate depending
upon the needs the individual
presents, just like the mother
in the first example. Managers
have also been reminded to
attend to the needs of their
subordinates as a team or
group. The resulting mix of
suggestions and prescriptions
has led most managers to
adopt a hybrid management
style, interacting with
individual employees in their
offices and with employee
groups at meetings. Some
managers emphasize the
individual interactions and
avoid meetings. Some
emphasize the group and
avoid individuals. Joshua Wu,
from the University of Miami,
became curious about this
mix and wondered if he could
measure it. While he was about
the task, he also found a way
to measure its outcomes.
Wu studied 70 work
groups from a variety of
industries. The average group
size was nine. He devised a
way to measure and identify
the mix of individual focus
and group focus that each
supervisor of these groups
employed in their leadership
roles. Finally, he noted the
effect of these different
emphases.
The highest performing,
most effective work groups
were led by managers using
the greatest group-centered
leadership focus. Managers
using the greatest individualcentered leadership focus led
the lowest performing, least
effective work groups. Looking
more closely at the experience
of children in a family will help
explain why this might be true.
In a large family with the
mother trying to respond
individually to each child,
some children will get more
attention than others. To their
siblings, these seemingly
favored children will become
the targets of abuse, and
fighting will become the norm.
Mom will be called upon to be
a referee, placing yet another
demand upon her time. These
children will fail to develop a
nurturing attitude toward their
siblings, and the urgent group
task, to raise a family, will be
neglected. It will be every child
for himself/herself. Does this
sound like work? Would you
like it to sound like someone
else’s work setting but not
yours? If so, then Wu has some
suggestions for you. These
will help you increase the
group-centered focus of your
leadership style.
Wu suggests we employ
group-based rewards.
Everyone must pull together
to get them, and everyone
enjoys the reward. He suggests
we remind people of their
membership in the group
and encourage them to think
of themselves as members.
He suggests we challenge
Continued on next page
National
Notes
Continued from page 8
medical devices. Legislation
would make the theft of
formula a violation of federal
racketeering laws. NRF
MEMBER
SPOTLIGhT:
DESERT
DENTaL
I
www.rannv.org • Retail Association of Nevada
Desert Dental... A State-of-the-Art
Dental Practice
F yOU cRINGE aT
ThE ThOUGhT
OF GOING TO ThE
DENTIST, ThIS
could be the place for you!
“We understand
those fears, many real,
some imagined,” said Dr.
Benjamin, the originator
of Desert Dental. “This is
the 21st Century and we
use the most modern
techniques for treatment
and pain cessation.”
A full-service dental
practice, the staff at Desert
Dental has patients in all
age ranges. They treat
children, some of whom
have special challenges for
a dentist.
“A number of doctors
Dr. Ilya Benjamin, DMD
or pediatricians will refer
children to us who might
have behavioral or medical
problems which make
dental care a problem,”
explained Dr. Benjamin.
They also specialize
in geriatrics care. Besides
dentures and laser gum
care, Desert Dental
specializes in implants
and Freedom Dentures.
This new concept
involves implanted posts,
which attach to a special
attachment on the
dentures. The plates then
click into place and no
denture cream is needed.
Even more important,
gone is the fear of the
denture coming loose
necessitating a quick run
to the restroom to apply
more cream to the loose
denture.
“Diabetics have
special dental
needs,” said Dr.
Benjamin. “We
have state of the
art equipment for
3-D imaging of the
mouth. We’re able
to rehabilitate the
entire mouth.”
One new piece
of equipment is
a periolase. This is the
first FDA approved piece
of equipment for non-
surgical laser gum therapy,
which can reverse the
ravages of gum disease.
For those wanting
cosmetic dental assistance,
Desert Dental offers
Invisalign as well as
Lumineers.
And they are creating a
new “snore center” to treat
certain causes of snoring.
Dr. Ilya Benjamin
received his DMD from the
University of Florida. His
residency was at Mount
Sinai Hospital. In 2001, he
read that Henderson was
the fastest growing city in
the U.S. and decided that
was the place for him and
his new dental practice.
Besides the Henderson
location, which is the main
office, there are offices in
Summerlin and East
Las Vegas.
Also on the staff is Dr.
Vadim Lebovich, DDS and
Harry Miller, M.D. a Board
Certified anesthesiologist.
For more information
on Desert Dental, their
many services and/or to
schedule an appointment,
go to www.24dream.tv n
DENTaL
SERvIcES
Dental Hygiene
Florida Probe
Arestin
Oraqix
Laser Dentistry
Sealants
Dental Implants
J-Block
PRP
CT Scan
Invisalign Dentistry
Invisalign FAQ
Cosmetic Dentistry
Lumineers
Preventative Dentistry
Freedom Dentures
Sedation Dentistry
Lien Dentistry
Tourism Dentistry
In-House Lab
Implants
Nevada
Notes
Continued from page 7
user is the Las Vegas Chamber
of Commerce, which occupies
about 25,000 square feet.
The developers had been
negotiating with lenders to
stave off foreclosure, but Bank
of Nova Scotia filed a motion
in January to proceed with
foreclosure. LVRJ
TO LEAD A GROUP Continued from page 8
the group with goals that
may seem out of reach and
describe an attractive vision
of the future. These serve to
inspire people. He suggests
that we point out common
features shared by employees
to encourage identification
with the group.
Over time, these themes
will cause people to feel a
stronger bond with the group,
and their individual needs
and problems will lose their
importance. A collective
identity will develop, and with
it — an elegant teamwork that
accomplishes important work
and nurtures its members. It is
a tantalizing possibility. n
Reference: Wu, Joshua, Anne Tsui, and
Angelo Kinicki (2010) Consequences
of Differentiated Leadership in Groups.
Academy of Management Journal, 53(1),
90-106.
C 2011 Management Resources
9
◆
Retail Association of Nevada • www.rannv.org
Budget Brawl Continued from page 1
here is a sales tax on services. Services would include, as the bill
states “any useful efforts that do not produce a tangible commodity.” The rate would be set at 1.0% and is projected to raise
$425,200,000.00 over the biennium.
As an association, we support the Governor and his approach
to Nevada’s budget. Many groups have gone on record saying they
will agree to taxes in exchange for reforms. We believe reforms
should be passed simply because they are good fiscal policy. Reforms should not be a traded option, but rather welcomed for the
good of the State of Nevada. In consequence, we support reforms
and the Governor’s budget, which calls for no increase in taxes. n
Important Information
for SIG Members
The NRS governing self insured groups requires notifying members of
all new members to the Nevada Retail Network Self Insured Group. New members
for NRNSIG from April 1, 2011 to April 30, 2011 are listed below.
Adventure Motostuff LLC
Homestretch Geothermal 2010, LLC
Bella Fiore Wine, Inc.
Industrial Equipment Repairs, Inc.
Ben Kalb Productions, LLC
Marmot Reof II, LLC
Benson Polymeric, Inc.
Pacific Rim, Inc.
Carson Lifestyle, Inc.
Sansone Development, LLC
dba Dream Dinners
Sunrise Gardens
Charles E. Jacks Appraisal &
Mobile Home Community
Consulting Inc.
Vesco, Inc.
FireVent LLC
NRNSIG members who wish to register a negative vote
on a new group member, please write NRNSIG at
575 S. Saliman Road, Carson City, NV 89701,
indicating which member and the reason(s) for the negative vote.
No Increase in
Minimum Wage/
Daily Overtime
D
ue to no
increase in
the federal
minimum
wage, Nevada’s minimum
wage, indexed to the federal,
will not increase in 2011.
The same holds true for
the daily overtime rate. All
rates become effective
July 1, 2011.
Minimum Wage: For
employees who have been
offered qualifying health
benefits: No less than
$7.25/hour
For all other employees:
No less than $8.25/hour
Daily Overtime: Employers must pay 1½ times
an employee’s regular wage
whenever an employee who
is paid less than 1½ times
the applicable minimum
wage rate works more than
40 hours in any workweek,
or more than 8 hours in any
workday, unless otherwise
exempted.
For employees who
have been offered qualifying
health benefits: Applies to
employees paid less than
$10.875/hour
For all other employees:
Applies to those paid less
than $12.275/hour
For more
information, go to www.
LaborCommissioner.com n
TAKE CONTROL OF YOUR WORKERS’ COMP COST
Be Part of…
The Nevada Retail Network
Certificate #5004
l Greater management control that cuts overhead costs
l Pre-employment screening at a small co-pay for NRN members only
l Team Safety/Loss Control Program for all members
l Investigation and defense of claims
l Direct savings that give members greater incentive to control losses
Take Control Today…
Call Mike Olson
800-859-3177
• Self Insured Group •
• Membership in RAN Required •
Sponsored by:
The Retail Association of Nevada
410 South Minnesota Street
Carson City, NV 89703-4272
10
◆
Membership Information: Find out more about RAN’s self insured group. Call Mike Olson, 800-859-3177,
or the RAN office at 775-882-1700 (toll free in Nevada 800-690-5959). Don’t forget to check out our website, www.RANNV.org.
www.rannv.org • Retail Association of Nevada
First Taxable Sales Report for 2011
RAN Press Release
J
anuary taxable
sales up 6.6%
statewide; eating
and drinking
places, accommodations, autos
and clothing lead in gains
Statewide, January and
fiscal-year-to-date taxable sales
comparisons are up 6.6 percent
and 5.1 percent, respectively.
Both figures appear to confirm
expectations for a slow but
steady recovery. Unlike past
months wherein recovery
was partially tied to particular
sectors or events, such as
equipment purchases in the
mining sector, January was an
improvement for a broader
base of categories. The latest
figures also represented the
seventh consecutive month
of annual increases and the
second month the trailing 12
P
month total turned positive
since the recession began.
Mary Lau, President of the
Retail Association of Nevada,
commented: “Consistent with
our outlook for 2011 reported
previously, it appears Nevada
is on track to realize a gain in
taxable sales of around 4.0
percent this year, matching the
national expectation. While
the leisure and hospitality
sector did well in January, it
will be encouraging if we see
continued improvement, as the
health of the tourism industry
tends to have a strong effect
on retail sales around the state.”
Lau continued, “Given
the growth in the mining
industry, it is not surprising
that many rural counties of
Nevada experienced doubledigit growth in January — such
as the impressive 43 percent
growth reported in Humboldt.
More modest, yet respectable
growth in metropolitan Clark
(6.0 percent) and Washoe
(0.3 percent) is encouraging,
but we still have a long way
to go to reach back to peak
performance levels. In Clark, for
example, January sales are still
down 19.2 percent compared
to the same month in 2007.”
Statewide, the following
sectors reported the largest
gains in terms of dollar volume
(January 2011 compared to the
same month prior year):
l Food services and drinking
places: +$37.2 million (+6.9%)
l Motor vehicle and parts
dealers: +$32.5 million (+12.5%)
l Accommodations: +$28.0
million (+20.0%)
l Clothing and clothing acces-
sories: +24.7 million (12.4%)
Results for other major
retail trade categories were
mixed (January 2011 compared
to the same month prior year):
l Electronics and appliance
stores: +$11.6 million (+11.3%)
l Health and personal care
stores: +$4.7 million (+5.6%)
l Nonstore retailers (online
sales): +$2.0 million (+6.9%)
l Sporting goods, hobby,
book and music: +$2.0 million
(+4.1%)
l Building material and garden
equipment: +$0.1 million
(+0.1%)
l Furniture and home
furnishings: +$18.8 thousand
(no change)
l Food and beverage stores:
–$1.3 million (-1.1%)
l General merchandise stores:
–$10.9 million (–4.1%) n
Obama Signs Measure Repealing
Expanded Tax Form Requirement
resident Obama
has signed
legislation
to repeal a
provision in last year’s health
care reform law that would
have required businesses to file
millions of new IRS 1099 forms.
“Small businesses are
the engine of our economy
and because Democrats and
Republicans worked together
we can ensure they spend
their time and resources
creating jobs and growing their
business, not filling out more
paperwork,” Obama said.
Obama signed H.R. 4, the
Small Business Paperwork
By J. Craig Shearman, National Retail Federation
Mandate Elimination Act, on
individual or unincorporated
Thursday, April 14. Sponsored
business for services, but the
by Representative Dan
provision would have extended
Lungren, R-Calif., the measure
the requirement to include
won final passage in the Senate
payments to corporations
earlier this month.
and to include purchases of
The new law repeals
tangible goods in addition
a provision in the Patient
to services.
Protection and Affordable
The broadened reporting
Care Act of 2010 requiring
requirement had nothing to
businesses to file a Form 1099
do with health care but was
with the Internal Revenue
included in order to bring in an
Service whenever they make
estimated $25 billion to help
non-credit card payments
fund health care reform.
totaling $600 or more to a
The provision was
vendor during a single year.
scheduled to take effect in
Federal law has long required
January 2012, so businesses
a Form 1099 when a business
would soon have been
pays $600 a year or more to an
required to set up mechanisms
to track their purchases and file
the forms.
Maryland jewelry
storeowner Seth Shipley
testified on behalf of NRF
before the House Small
Business Committee in
February, telling the panel
the provision would cause
small businesses to be hit with
a “blizzard of unnecessary
paperwork.” Shipley’s Diamonds
and Fine Jewelry employees
would have been required
to spend an additional 1,000
hours of work each year
tracking hundreds of vendors
at a cost estimated at $35,000,
he said. n
◆ 11
Retail Association of Nevada
410 South Minnesota Street
Carson City, Nevada 89703-4272
PRESORTED
STANDARD
U.S. POSTAGE PAID
RENO, NV
PERMIT NO. 625
NEVADA NEWS
Nevada News is published by the Retail Association of
Nevada, a nonpartisan, nonprofit corporation
founded in 1969 representing the Retail Community,
the Chain Drug Council and the Grocery Industry Council.
Mary F. Lau
President/CEO
Elizabeth MacMenamin
Vice President of Government Affairs
Lea Tauchen
Senior Director of Government Affairs
Bryan Wachter
Director of Government Affairs
Piper Brown
Office Manager
Mike Olson
Account Executive / Workers’ Comp
Ande Engleman
Newsletter Editor
Sue Arzillo, Alphabet Soup Inc.
Newsletter Design & Layout
WASHINGTON RETAIL INSIGHT
Sponsors Push Bright Line Test
For Business Activity Taxes
S
PONSORS
URGED a
cONGRESSIONaL
PaNEL TO
approve legislation that
would clarify the constitutional ban on states
imposing business activity
taxes on retailers and other
companies that don’t have
a physical presence in
the state.
“Over the past several
years, a growing number of
jurisdictions have sought
to collect business activity
taxes from businesses
located in other states even
though those businesses
receive no appreciable
benefits from the taxing
jurisdiction,” Representative
Bob Goodlatte, R-Va., said.
“This has led to unfairness
By J. Craig Shearman, National Retail Federation
and uncertainty, generated
contentious, widespread
litigation, and hindered
business expansion.”
Goodlatte, who testified
before the House Judiciary
Committee’s Subcommittee
on Courts, Commerce
and Administrative Law,
is sponsor of H.R. 1439,
the Business Activity
Simplification Act.
The bill would establish
a “bright line” physical
presence standard barring
states from collecting
corporate income taxes or
comparable taxes unless
a business either owns or
leases property in the state
or assigns one or more
employees to perform work
there for more than 15 days
a year. It would also update
an existing federal ban on
assessing net income taxes
on a company whose only
contact with a state is to
solicit orders for tangible
property. The ban would
be expanded to include
companies seeking orders
for intangible property and
services, and to prohibit
taxes that have replaced net
income taxes.
“No one is arguing
that businesses should not
be responsible for paying
taxes to states where they
do business,” bill cosponsor
Representative Bobby
Scott, D-Va., said. “However,
BATSA would ensure
fairness, minimize costly
litigation for both state
governments and taxpayers,
reduce the likelihood of a
business being “doubletaxed” on the same income,
and create the kind of
legally certain and stable
business environment that
encourages businesses to
make investments, expand
interstate commerce and
create new jobs.
NRF believes a business
should have a significant
physical presence in a
state before a business
activity tax can be imposed.
NRF has asked Congress
for a bright-line physical
presence test that is fair
to both government and
businesses and simple for
government to administer
and for businesses to
comply. n