NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

Administrative Office of the Courts (AOC)

SUMMARY

Synopsis of Bill

House Bill 619 would enact the following:

• Employers would be required to provide reasonable work schedule flexibility for employees needing to "express breast milk for her infant child."



• Employers would be required to make "reasonable efforts" to provide a safe, private and sanitary room or other location other than a toilet stall where an employee could express her milk in privacy.



• The employer would be allowed a tax credit against his/her personal or corporate income taxes. The credit would be equal to the total expenses incurred in providing the lactation space as well as those for lactation-related equipment and services. The credit is applied against the taxpayers liability in the year that the expenses are incurred, but are capped at $5 thousand. However amounts in excess of $5 thousand may be carried forward for three consecutive years, but may not exceed $5 thousand in any year.



• The bill expands the set of unlawful discriminatory practices. It states that is an unlawful discriminatory practice for: "an employer to refuse to hire, to discharge, to promote or demote or to discriminate in matters of compensation, terms, conditions or privileges of employment against a nursing mother for expressing milk, breast feeding or other related activities."



• The bill would allow judges to exclude (or postpone) from jury service a new mother who chooses to breast-feed or express milk for her infant for up to one year following the birth of her child.




FISCAL IMPLICATIONS





Taxation and Revenue (TRD) reports that the fiscal impact of the bill is indeterminate, but based on experience with the child daycare credit, the initial fiscal implications "will probably be low, perhaps $50 thousand." They add that if the credit were widely used, the cost could be considerably more.





ADMINISTRATIVE IMPLICATIONS





TRD reports that the administrative impacts depend on how widely the credit is used. If it is widely used, the audit costs could be substantial, they say.





The AOA reports that the bill will have a small, immediate impact as jury summonses will need to be reprogrammed to include information as to additional ground for exemption. The long-term fiscal impact could be large if it results in unrepresentative juries, they say.





TECHNICAL ISSUES





TRD notes that the bill does not specify the tax year when the credit becomes applicable.





OTHER SUBSTANTIVE ISSUES




1. The Administrative Office of the Courts provided an analysis in which they raised concerns as to the exemption provided for jury duty. They say that in 1970 the legislature eliminated many exemptions in an effort to ensure that juries were representative.



2. TRD reports that the bill does not define the items against which the tax credit applies.




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