FEDERAL AND STATE

1

FEDERAL AND STATE LEGISLATIVE REPORT        
Indiana SHRM Legislative
Summit Wednesday, August 30, 2006
2
Indiana SHRM

• Rob Aspy and Steve Kellam
• Co-Legislative Directors
• Goals are to provide information and to
  increase communication with the Legislative and
  Executive branches of Federal, State and Local
  governments

3
Todays Topics

• 
  
• Federal and State activity
• HR professional as lobbyist
• Indiana Chamber of Commerce (resource)

4
Federal Legislative Report

• National SHRMs 2006 interests
• Family Medical Leave Act
• Immigration
• Health Care
• Retirement

5
SHRM Legislative Statement on FMLA

• SHRM continues to oppose private sector
  employee benefits mandated in any form by
  governments. Employers are best situated to know
  the benefits preference of their own employees.
  Businesses work to tailor leave requirements to
  the needs of their employees. Government
  initiatives that remove or restrict the
  flexibility of an employer to shape leave
  benefits tend to work against employees.

6
Key SHRM Points on Employment Verification

• Support efforts to improve system
• Support electronic verification system
• System requirements need
• Certainty / Accuracy / Speed

7
SHRM Key Points on Retirement

• Individuals are responsible to plan and to
  build their own retirement resources
• Government should encourage savings through
  tax preferred savings vehicles
• Government should encourage voluntary
  employer-sponsored retirement benefits with tax
  incentives

8
SHRM Key Points on Health Care Reform

• Support Universal access to basic health
  care and improved technology.
• Oppose
• Mandates
• Legislation that increases costs or employer
• liability
• Implementation of administrative/legal
• burdens on employers/health plans

9
Federal Recent Activity

• Health Care
• July 2005 S1418 Wired for Healthcare
  Quality Act sent by Health, Education, Labor and
  Pensions (HELP) Committee to Senate Floor -
  Shifting of HealthCare information to electronic
  format.
• Senate Passed 11/18/2005

10
Federal Activity

• Health Care (March 2006)
• Workforce Health Improvement Program (HR 1634)
  introduced
• -to fight obesity and chronic diseases caused
  by inactivity.
• -to allow balanced tax treatment for fitness
  center benefits
• House holds a hearing on Health Care
  Information proposals

11
Federal Activity

• Health Care
• Senate HELP Committee S1955
• Legislation would allow small businesses to
  join together to purchase fully-insured Small
  Business Health Plans (SBHPs) that could bypass
  state coverage mandates

12
Federal Activity

• Health Care
• House Ways and Means Subcommittee on 5/24/06
  advanced HR4157 the Health Information
  Technology Promotion Act of 2006
• 5/2/06 HR5262 was introduced to modify HSAs to
  make them more attractive to employers and
  employees

13
Federal Activity

• Health Care
• Department of Health and Human Services (HHS)
  Centers for Medicare and Medicaid Services (CMS)
  on 6/1/06 announced its efforts to make important
  health care information and data more accessible
  to consumers and purchasers

14
Federal Activity

• Health Care
• Health Information Technology bill HR 4157
  Cleared two House committees
• 6/15/06 reported out by House Energy and
  Commerce Committee
• 6/16/06 reported out by the House Ways and
  Means Committee
• HR4157 passed House 7/27/06

15
Federal Activity

• Immigration bills did NOT become law
• Immigration Enforcement Bill HR4437
• - Electronic Verification System
• - Secondary Verification System
• - Re-verification of existing employees
• - Employer attestation of verification
• - Increased penalties, criminal sanctions and
  opens Federal tort claims for wrongful dismissal

16
Federal Activity

• Immigration
• Senate passed immigration reform package S2611
  on 5/25/06
• Covers similar points as the House bill but
  there are significant differences

17
Immigration

• Border Protection, Antiterrorism,
• and Illegal Immigration Control
• Senate and House do not agree on priorities or
  funding.
• Key areas for mandates are electronic
  employment verification, penalties and
  re-verification of all employees.

18
Federal Activity

• No Change in Minimum Wage
• Senate two amendments (attached to other
  bills) failed to pass. June 2006
• House Passed minimum wage increase HR5970
  June 2006
• Proposed increases from 5.15 to 5.85 on
  1/07 6.55 on 6/08 7.25 on 6/09

19
Federal Activity HR4

• Pension Reform
• House passed HR4 7/28/06
• Senate Passes HR4 8/3/06
• President Bush signs into law 8/17/06

20
Federal Activity

• Pension Reform HR4 Key Points
• Employers can automatically enroll employees
  in 401(k)
• Easier for companies to automatically increase
  of employees salary directed to the plan
• Easier for qualified fiduciary advisers at
  financial companies to offer advice

21
Federal Activity

• Pension Reform HR 4 (Continued)
• Expands annual contribution limits
• Requires employer with defined benefit plans
  to make sufficient contributions to meet a 100
  funding target and erase shortfall over seven
  years.
• Companies cannot force employees to invest in
  company stock

22
Regulatory Update

• EEOC finalized revisions to EEO-1 Survey
• on 11/16/05
• EEO -1 Survey for 2006 due 9/30/06
• Must use revised EEO -1 Survey
• for FY 2007 beginning with 10/1/07

23
Regulatory Update

• Uniformed Services Employment and Reemployment
  Rights Act (USERRA)
• - Information at www.dol.gov/vets
• - DOL finalized 12/16/05.
• - Effective 1/19/06
• - DOL clarifies/interprets regs.

24
Supreme Court

• Sereboff v. Mid Atlantic Medical Services
• Ruling ERISA fiduciaries may enforce a
  plans reimbursement provisions against plan
  participants who take possession of funds
  recovered from third parties that caused the
  injury.
• Sereboffs recovered 750,000 and MAMSI sought
  74,869.37 in Medical Expenses. MAMSI won.

25
Senator Richard Lugar (R)

• Elected in 1976 (Unopposed for his
• 6th term election in November 2006)
• Committees
• - Foreign Relations, Chair
• - Agriculture, Nutrition Forestry

26
Senator Richard Lugar

• Contact info www.senate.gov
• 202-224-4814
• Senator_lugar_at_lugar.senate.gov
• 306 Hart Senate Office Bldg
• Washington, D.C. 20510-1401

27
Senator Lugar
28
Senator Evan Bayh (D)

• Elected 1998 (2nd term 2004).
• Committees
• - Select Committee on Intelligence
• - Armed Services
• - Special Committee on Aging
• - Banking, Housing, Urban Affairs
• - Small Business

29
Senator Evan Bayh

• Contact 202-224-5623
• Senator_bayh_at_bayh.senate.gov
• 463 Russell Bldg
• Washington, D.C. 20510

30
Senator Bayh
31
HR Professional as Lobbyist

• National SHRM membership automatically
  provides access to HRVoice.
• HRVoice assists you in to take proactive steps
  to shape public policy affecting HR profession.
• HRVoice is for political novices and seasoned
  professionals alike as nonpartisan.

32
HRVoice Resources

• Tools to help you educate legislators. SHRM
  fact sheets, newsletters, lobbying tips,
  legislative updates, and an HRVoice toolkit .
• Legislative alerts on bills that will affect
  the workplace and require your professional input
  through phone calls, letters, faxes or meetings.
  Alerts include talking points and/or sample
  letters to guide communications with members of
  Congress.

33
HRVoice

• 1. Log on to www.shrm.org.
• 2. Prompt to enter your SHRM member
• ID and last name.
• 3. Click on "Government Affairs" tab on
• left side of screen.
• 4. Scroll down to the "HRVoice" tab.
• 5. Select "Write your Elected Officials."

34
HRVoice

• 1. Software will compose and send your own
  customized letter to (US House Senate).
  HRVoice will fill in salutation, body of
  letter, and signature block. Sends to all three
  legislators.
• 2. Form to report phone call or fax to Congress.
• National SHRM records these numbers.

35
2006 Indiana General Assemblys Agenda

• Agenda unknown???????

36
Indiana Bills of Interest 2006

• Workplace Safety/Violence
• BILL ENACTED -Castle Provision Only
• HB1028 Rep Eric Koch (R)
• Anticipate reintroduction in 2006 of the
  deleted provision in last years original bill
  that would make it illegal for employers to have
  policies to prevent employees and patrons from
  keeping firearms in private vehicles while on
  company property, including an employers parking
  lot.

37
Indiana Bills of Interest 2006

• Workplace Safety (SHRM Position)
• Employees are entitled to a safe and healthful
  work environment. SHRM believes that employers
  have a responsibility to provide a safe workplace
  and protect employees from threats or acts or
  violence to the best of their ability.

38
Indiana Bills of Interest 2006

• Unemployment Insurance
• HB1183 Rep Russ Stilwell (D)
• SB250 Senator Allie Craycaft (D)
• SB6 SB290 Senator Vi Simpson (D)
• State SHRM Opposed to legislation that
  would reduce due process for employers to insure
  a fair hearing on unemployment claims. Also,
  proposed waiting period changes.

39
Indiana Bills of Interest 2006

• Family Medical Leave Act State provisions
• HB1185 Rep Ryan Dvorak (D)
• HB1200 Rep Phil Hoy (D)
• HB1288 Rep Dennis Avery (D)
• SB289 Senator Vi Simpson (D)
• State SHRM position Oppose any additions to
  FMLA. Current laws / rulings are confusing and
  contradictory. The Department of Labor should
  further define the Executive Departments
  interpretation of the FMLA law.

40
Indiana Bills of Interest 2006

• Wage and Hour
• HB1399 Rep Matt Whetstone (R)
• SB96 Senator Timothy Lunane (D)
• SB131 Senator Allie Craycraft (D)
• Provisions to increase the minimum wage
• State SHRM Local chapters work to insure
  that wage increases do not detract from the
  ability to attract employers and employ people
  competitively on the world market.

41
Indiana Bills of Interest 2006

• Mandated Benefit Exclusions
• HB1041 Rep Gerald Torr (R)
• SB 204 Senator Jeff Drozda (R)
• State SHRM Opposes any additional benefit
  mandates. Exclusions may be acceptable depending
  on the final language. In 2005, seventeen bills
  were introduced.

42
Indiana Bills of Interest 2006

• Plant Closing and Mass Layoff Notice
• HB1359 Rep Dennis Tyler (D)
• Requires certain employers to give written
  notice not later than 60 days prior to the event.
• SHRM believes that whenever possible employer
  should inform employees of a pending closure.
  Opposed to legislation that imposes a single
  standard on employers.

43
Indiana Bills of Interest 2006

• Workers Compensation
• HB 1241 Rep Russ Stilwell (D)
• SB223 Senator Karen Tallian (D)
• State SHRM - opposes increases in or
  additional reasons for Workers Compensation.

44
Indiana Bills of Interest (2006)

• Workers Compensation
• HB 1307 Rep Gerry Torr (R) FINAL ENACTED
• Burden of proof of the element of the claim is
  on the employee. Proof by the employee does not
  create a presumption in favor of the employee
  with regard to another element of the claim.
  Provides for increases in the average weekly wage
  used to calculate workers compensation and
  occupational disease benefits. Requires an
  employer to notify an employee of the time
  limitation for filing for workers compensation
  for personal injury by accident.

45
Indiana House Committee for HR Interest Bills

• EMPLOYMENT AND LABOR
• Rep. Jerry Torre, Chair (R) Carmel
• Rep. Dan Leonard, Vice Chair (R)
  Huntington Rep. Randy Borror (R) Fort Wayne
• Rep. Tim Brown (R) Crawfordsville
• Rep. Jim Buck (R) Kokomo
• Rep. Eric Gutwein (R) Rensselaer
• Rep. Don Lehe (R) Brookston
• Rep. Duane Cheney (D) Portage
• Rep. Mae Dickinson (D) Indianapolis
• Rep. Russ Stilwell (D) Boonville
• Rep. Matt Pierce (D) Bloomington
• Rep. Tom Kromkowski (D) South Bend

46
Indiana Senate Committee for HR Interest Bills

• HEALTH PROVIDER SERVICES
• Senator Patricia Miller, Chair (R) Indianapolis
• Senator Gary Dillon (R) Columbia City
• Senator Billie Breaux, (D) Indianapolis
• Senator Beverly Gard (R) Greenfield
• Senator Marvin Riegsecker (R) Goshen
• Senator Connie Sipes (D) New Albany
• Senator Connie Lawson (R) Danville
• Senator Ryan Mishler (R) Bremen
• Senator Veneta Becker (R) Evansville
• Senator Vi Simpson (D) Bloomington
• Senator Tim Skinner (D) Terre Haute

47
Senate Pensions Labor

• Joe Harrison, Chair (R) Attica
• Mike Young (R) Indianapolis
• Veneta Becker (R) Evansville
• Gary Dillon (R) Columbia City
• Jeff Drozda (R) Westfield
• Dennis Kruse (R) Auburn
• Ryan Mishler (R) Bremen
• Anita Bowser (D) Michigan City
• Larry Lutz (D) Evansville
• Samuel Smith (D) East Chicago
• Karen Tallian (D) Portage

48
City of Bloomington Living Wage Ordinance

• Effective January 1, 2006.
• Purpose to ensure that city employees,
• contractors and subcontractors, and
• beneficiaries of city subsidies pay a
• sufficient living wage.

49
Marion County

• Human Rights Ordinance Change 12/05
• - Adds protections against discrimination in
  Marion County based upon
• Sexual Orientation
• Gender Identity
• U. S. Military Veterans Status
• - Apply to employers with six or more employees.
• - Requires policy, handbook, training and
  updates.

50
INDIANA CHAMBER

• Provides information on legislative voting
  patterns.
• Promotes a pro-business position.
• Educates and gathers information from
  businesses.

51
INDIANA CHAMBER

• George Raymond, Vice President,
• Human Relations, Labor Relations Civil
  Justice
• 800.824.6884
• graymond_at_indianachamber.com

52
INDIANA CHAMBER

• Key Contact
• Theresa Jolivette, Director of Health Care,
  Civil Justice and Workplace Health and Safety
  Policy
• 800.854.6880
• tjolivette_at_indianachamber.com

53
Websites

• 1. shrm.org (www.)
• 2. indianashrm.org (www.)
• 3. in.gov/legislative (www.)
• 4. in.gov/apps/lsa/session/billwatch/
• billinfo (www.)
• 5. in.gov/gov/bills(www.)
• (Bills signs by Governor)

54
E-Mail

• Chamber Email contacts (.com)
• graymond_at_indianachamber
• tjolivette_at_indianachamber

55
State Council Contacts

• Co-Legislative Directors
• Steve Kellam (Indy, north and east of Indy)
• 317.816.7007 x106
• skellam_at_psmin.com
• Rob Aspy (south and west of Indy)
• 812.342.3306
• robnbarb7_at_comcast.net

56
Questions?