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There are many opportunities for members of the business community to serve on various boards and commissions that impact the lives of Nebraskans. Please consider participating in state government in this manner and encourage a co-worker to do the same. Contact Peggy King at (402) 471-1971 or view a letter from Gov. Heineman for more information.
City of Omaha 2011 Budget Proposal
On Tuesday, July 20, Omaha Mayor Jim Suttle presented his budget for the 2011 fiscal year to the Omaha City Council. The proposed budget would increase General Fund spending from $281 million to $313 million (an 11 percent increase), and overall spending, which includes items such as roads and the sewer rebuilding project, from $576 million to $676 million (a 17 percent increase). The budget proposes increasing the property tax by 4.4 cents; the imposition of a four percent gross-proceeds occupation tax on restaurants, bars and caterers; and a $23 increase in the annual wheel tax.
There will be a public hearing on the proposed budget on Tuesday, Aug. 10, at 7 p.m. at the City/County building in the council chambers. The Mayor has also scheduled several town hall meetings:
- Thursday, July 22, 6:30 - 8 p.m., Millard South High School, 14905 Q St.
- Monday, July 26, 6:30 - 8 p.m., Central High School, 124 N. 20th St.
- Wednesday, July 28, 6:30 - 8 p.m., Westside High School, 8701 Pacific St.
- Monday, Aug. 2, 6:30 - 8 p.m., Omaha South High Magnet School, 4519 S. 24th St.
Health Care Bill Brings New Filing Requirements for Many Businesses
IRS Accepting Comments on Implementation Rules
The Greater Omaha Chamber wants to make member businesses aware of the new filing requirements for business-to-business transactions. The health care reform legislation recently approved by Congress contains myriad provisions that are not related to health care insurance or delivery. Among these is a broad expansion of 1099-MISC filing requirements for business-to-business transactions.
Currently, businesses file 1099-MISCs when payments are made to an independent contractor for services totaling at least $600 in a calendar year.
Under section 9006 of the health care law, beginning in 2011 this filing requirement will be expanded to include the purchase of goods. In addition, payments subject to reporting will be expanded to include those made to all corporations subject to the income tax. In effect, this will result in reporting of all business-to-business transactions that aggregate to $600 per year.
Legislation has been introduced (HR 5141, the Small Business Paperwork Mandate Elimination Act) that would repeal these new requirements. It is co-sponsored by Nebraska Reps. Lee Terry, Jeff Fortenberry and Adrian Smith. Sen Johanns has introduced companion legislation (S 3578) in the Senate. The outlook for these bills is uncertain at the monent.
In the meantime, recognizing that this will result in a substantial increase in the regulatory burden on businesses (and the government), the Internal Revenue Service is taking public comment on rules to implement this requirement.
Comment is requested on:
- Implementing this in the least burdensome manner, including avoiding duplication of reporting
- Defining the terms "gross proceeds" and "amounts in consideration for property"
- Whether the reporting requirements should apply to payments between affiliated corporations
- Process and timelines for filing reports, including those for present 1099 requirements
- Suggested changes to Form W-9 (Request for Taxpayer Identification Number and Certification) and rules for requesting identification numbers, including privacy concerns
- How to administer backup withholding requirements for missing identification numbers.
Comments can be submitted until Sept. 29.
By mail:
Internal Revenue Service,
CC:PA:LPD:PR (Notice 2010-51),
Room 5203
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044
By e-mail:
Comments@irscounsel.treas.gov
(Use "Notice 2010-51" for the subject line.)
You can view the IRS announcement on the rulemaking at http://www.irs.gov/pub/irs-drop/n-10-51.pdf.
Third Cloture Vote on Tax Extenders Bill Falls Short - Financial Regulation Compromise Imminent
Another week, another compromise offered, and another failed cloture vote on extending favorable tax programs and paying for them with unfavorable tax programs. The status of HR 4213 moves from in-flux to precarious after the 57-41 vote. Senators Nelson and Johanns voted against cloture.
House and Senate conferees are very close to agreement on the financial services regulation bill (S 3217). Floor consideration could be scheduled quickly after a conference committee report is filed.
Senate Consideration of Tax Extenders/Unemployment Bill Remains in Flux . . .
Senate votes on the tax and unemployment bill Thursday included votes to defeat both an amendment by South Dakota Senator John Thune that was aimed at reducing federal spending (including a federal hiring freeze and a five percent reduction in spending for most agencies) and a cloture motion on an amendment that was offered as a compromise to the overall bill offered by Finance Chairman Max Baucus. The Thune amendment was defeated by a vote of 41-57 (both Nebraska Senators voting for the proposal), and the cloture motion was defeated 56-40 (both Nebraska Senators voting nay). This remains in flux . . .
Senate Continues Debate on Tax Extenders/Unemployment Bill - Cloture Motion Filed
The Senate continues consideration of HR 4213, the tax extender/unemployment bill, with key votes expected shortly. Pending are numerous amendments, as is a cloture motion that was filed Monday afternoon.
Versions approved by the House and being considered by the Senate contain myriad tax credits and deductions, many of which are expiring, as well as tax increases. Extensions would include biodiesel production incentives, research credits, the new markets credit, empowerment zone and renewal community incentives, and the option of deducting state and local sales taxes in lieu of income taxes.
Tax increases in the legislation include a provision to subject more investment income of certain partnerships (including property development) to regular income tax rates instead of the 15 percent capital gains tax.
The bill also contains provisions for repealing the imminent 20 percent reduction in Medicare payment to physicians and an extension of federal unemployment benefits.
House-Senate Conference Underway on Financial Services Legislation
House and Senate leadership have appointed conferees to sort out differences in versions of the financial services regulation bills approved by the two bodies. An unofficial target for approving a final, unified package of legislation is early July.
Senate Approves Financial Services Regulation
The U.S. Senate approved its version of financial services regulation legislation Thursday night 59-39. The vote came after the two remaining amendments were pulled after one (which would have exempted automobile dealers from regulation) was offered as an amendment to the other (which would have further restricted investments by banks). A likely next step is to resolve House and Senate differences via appointment of a conference committee. Some speculate that this could result in approval of a final bill by the end of June.
Second Cloture Motion on Financial Services Legislation is Successful
The U.S. Senate approved a cloture motion 60-40 Thursday on the financial services regulation bill (S 3217) that it has been debating for a number of weeks. This will limit further debate time as well as limit consideration of amendments to one offered by Democratic Senators and one by Republicans. Final approval of the measure could come yet this week. That would be followed by appointing a conference committee to work out differences with legislation approved by the House late last year. A compromise agreement would then have to be approved by both the House and Senate.
First Cloture Motion on Financial Services Regulation Fails; Second Scheduled for Thursday
The U.S. Senate continues floor debate on financial services regulation legislation (S 3217). A cloture motion to limit debate failed Wednesday on a 57-42 vote. A second attempt at cloture will occur Thursday afternoon. Issues that have dominated the debate have not only been the central structure of the proposal (establishing a regulatory agency) but also matters such as the regulation of derivatives trading and whether automobile dealers should be exempt from the regulations.
The Congressional Research Service summary of the bill as introduced is below.
CRS Summary
The Restoring American Financial Stability Act of 2010 establishes the Financial Stability Oversight Council to: (1) identify risks to the financial stability of the United States; (2) promote market discipline; and (3) respond to emerging threats to the stability of the United States financial markets.
Establishes within the Department of the Treasury: (1) the Office of Financial Research (Office) to support the Financial Stability Oversight Council; and (2) the Financial Research Fund to fund the Office.
Grants the Board of Governors of the Federal Reserve System (Board) additional authority to require reports and conduct examinations of certain nonbank financial companies and bank holding companies.
Revises supervision and prudential standards for nonbank financial companies supervised by the Board and for certain bank holding companies.
Establishes in the U.S. Bankruptcy Court for the District of Delaware an Orderly Liquidation Authority Panel to authorize the Secretary of the Treasury (Secretary), under specified circumstances, to appoint the Federal Deposit Insurance Corporation (FDIC) as receiver of a financial company in default or in danger of default whose failure would have serious adverse effects on financial stability in the United States.
Enhancing Financial Institution Safety and Soundness Act of 2010 - Transfers all functions of the Office of Thrift Supervision (OTS) and the OTS Director to the Board, to the Office of the Comptroller of the Currency, and to the FDIC.
Abolishes OTS.
Prohibits the issuance of charters for federal savings associations.
Private Fund Investment Advisers Registration Act of 2010 - Amends the Investment Advisers Act of 1940 with respect to: (1) the regulation of advisers to hedge funds; (2) collection of systemic risk data; and (3) the asset threshold for federal registration of investment advisers.
Office of National Insurance Act of 2010 - Establishes within the Department of the Treasury the Office of National Insurance to monitor all aspects of the insurance industry, including identification of issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the United States financial system.
Nonadmitted and Reinsurance Reform Act of 2010 - Sets forth procedures for: (1) reporting, payment, and allocation of nonadmitted insurance premium taxes; and (2) regulation of credit for reinsurance and reinsurance agreements.
Bank and Savings Association Holding Company and Depository Institution Regulatory Improvements Act of 2010 - Imposes a moratorium upon FDIC provision of federal deposit insurance for credit card banks, industrial loan companies, and certain other companies under the Bank Holding Company Act of 1956.
Amends the Bank Holding Company Act of 1956 to revise requirements for reports, examinations, and regulation of functionally regulated subsidiaries, including concentration limits on large financial institutions.
Over-the-Counter Derivatives Markets Act of 2010 - Amends the Commodity Exchange Act to: (1) extend joint rulemaking and regulatory authority of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to over-the-counter derivatives markets; and (2) require large swap trader reporting.
Amends the Gramm-Leach-Bliley Act to repeal the prohibition against the regulation of security-based swaps.
Amends the Securities Exchange Act of 1934 to set forth: (1) clearing requirements for security-based swaps; (2) registration and regulation procedures governing security-based swap dealers and major security-based swap participants; and (3) position limits and position accountability for security-based swaps.
Directs the SEC, the CFTC, the Financial Stability Oversight Council, and the Treasury Department, individually and collectively, to consult and coordinate with foreign regulatory authorities on the establishment of consistent international standards with respect to the regulation of certain SWAPS.
Payment, Clearing, and Settlement Supervision Act of 2010 - Directs the Financial Stability Oversight Council to designate those financial market utilities or payment, clearing, or settlement activities which it determines are, or are likely to become, systemically important.
Sets forth procedures governing examination of and enforcement actions against financial institutions subject to standards for designated activities, including: (1) financial and operational risks such activities may pose to other financial institutions, critical markets, or the broader financial system; and (2) information to assess systemic importance of financial institutions engaged in payment, clearing, or settlement activities.
Amends the Securities Exchange Act of 1934 to: (1) establish the Investor Advisory Committee and the Office of the Investor Advocate; (2) authorize the SEC to restrict mandatory predispute arbitration; (3) prescribe securities whistleblower incentives and protection; and (4) revise regulation, accountability, and transparency of nationally recognized statistical rating organizations (NRSROs).
Amends the Securities Investor Protection Act of 1970 to increase the borrowing limit on Treasury loans.
Amends the Securities Exchange Act of 1934 to: (1) direct the federal banking agencies and the SEC to prescribe joint regulations to require any securitizer to retain an economic interest in a portion of the credit risk for any asset that the securitizer, through the issuance of an asset-backed security, transfers, sells, or conveys to a third party; (2) require procedures for annual shareholder approval of executive compensation; and (3) require disclosures regarding employee and director hedging.
Requires the SEC to report to certain congressional committees regarding: (1) its conduct of examinations of registered entities, enforcement investigations, and review of corporate financial securities filings; and (2) its oversight of national securities associations.
Prescribes standards for: (1) corporate governance; and (2) regulation of municipal securities and changes to the Municipal Securities Rulemaking Board.
Establishes in the SEC the Office of Municipal Securities.
Amends the Sarbanes-Oxley Act of 2002 to authorize the Public Company Accounting Oversight Board to share certain information with foreign authorities.
Amends the FDIA to direct the Inspector General of each federal banking agency to report to Congress semiannually on certain losses to the Deposit Insurance Fund.
Instructs the Comptroller General to study and report to Congress on the risks and conflicts associated with proprietary trading by and within specified entities.
Directs the Office of Financial Literacy of the Bureau to establish a program to make grants to states for enhanced protection of seniors from being misled by false designations.
Consumer Financial Protection Act of 2010 - Establishes: (1) in the Federal Reserve System the Bureau of Consumer Financial Protection (Bureau) to regulate the offering and provision of consumer financial products or services under the federal consumer financial laws; (2) the Office of Fair Lending and Equal Opportunity; (3) the Office of Financial Literacy; and (4) the Consumer Advisory Board.
Grants the Bureau supervisory powers and enforcement authority over certain large-sized insured depository institutions and insured credit unions.
Excludes from Bureau oversight certain merchants, retailers and other sellers of nonfinancial goods or services.
Grants the Bureau specific authorities, including prohibiting unfair, deceptive, or abusive acts or practices.
Transfers to the Bureau specified consumer financial protection functions.
Prescribes requirements for collection of deposit account data.
Amends the Equal Credit Opportunity Act regarding small business loan data collection.
Amends the Truth in Lending Act to prohibit certain prepayment penalties.
Amends the Federal Reserve Act with respect to emergency lending authority.
Authorizes the Comptroller General, under specified circumstances, to conduct reviews of the Federal Reserve Board, a federal reserve bank, or a credit facility.
Improving Access to Mainstream Financial Institutions Act of 2010 - Authorizes the Secretary to establish a multiyear program of grants, cooperative agreements, financial agency agreements, and similar contracts or undertakings to promote initiatives to enable low- and moderate-income individuals to: (1) to establish one or more accounts in a federally insured depository institution that are appropriate to meet their financial needs; and (2) gain improved access to the provision of accounts on reasonable terms.
Wondering What's Up on Health Care?
See our main public policy page for a link to timelines and other details.
For more information about public policy issues issues, contact Dacia Kruse, director of public policy and state issues, or Tim Stuart, manager of transportation development and policy research, at (402) 474-4960.