Friday, March 17, 2017

McAuliffe vetoes coal tax credit, local wage control, franchisee-franchisor bills

Governor Terry McAuliffe today vetoed House Bill 1394, which would categorically prohibit franchisees and their employees from being considered the employees of a franchisor. As proponents of this legislation have acknowledged, franchisees and their employees are not considered employees of the franchisor in typical franchisor/franchisee relationships.

It would relieve these dominant franchisor/employers of the obligations and responsibilities an employer owes to its employees. As a result of this blanket approach, it would fall to the dominated franchisees—usually small, Virginia-based businesses—to shoulder the burdens more appropriately placed on the dominant franchisor

McAuliffe also vetoed House Bill 1753, which would restrict local governments from making their own decisions about the wages that contractors pay employees.

The ability of other local governments to make this choice should be supported, not limited. Decisions regarding municipal contracts should be made by local leaders who fully understand local needs, and the needs of their workforce.

 McAuliffe vetoed Senate Bill 1470 for a second time. It would reinstate the coal employment and production incentive tax credit and extend the coalfield enhancement tax credit without meaningful reforms. JLARC found that the decline of coal production and employment was the same or even faster than was predicted before the credits were created

From 1988 until 2016, coal mine operators, electricity generators, and other coal-related companies have claimed over $637 million in tax credits. However, during the same period, the number of coal miners in Virginia has declined from 11,106 to 2,483. It would be unwise to spend additional taxpayer dollars on a tax credit that has fallen so short of its intended effectiveness.

Posted By Valerie Garner

Categories: Politics, State Politics

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