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IN BUSINESS HEALTH CARE QUARTERLY NEVADA ATTORNEY READIES FOR SUPREME COURT CHALLENGE By Sean Whaley nevada news bureau CARSON CITY — The Las Vegas attorney representing Nevada in the 26-state challenge to the new federal health care law says the case is critically important because of the mandate for people to purchase health insurance. "Never before in our nation's history has the federal government required its citizens to purchase a product or service as a condition of citizenship in this country," said Mark Hutchison, who is representing Nevada without charge in the case. "This case is of high importance to all Nevadans, because if the federal government can require us to purchase health insurance, then they can require us to purchase anything they choose." Hutchison, in a statement issued Nov. 14 when the U.S. Supreme Court agreed to hear the case, said the initial written briefs are due Dec. 29. Oral arguments are expected to be heard in March. The court will issue a decision in the case before its term expires at the end of June 2012. First appointed by Gov. Jim Gibbons, then reaffirmed by Gov. Brian Sandoval, Hutchison was named to serve as lead special counsel for the state when Attorney General Catherine Cortez Masto declined to represent the state in the federal litigation. In addition to the 26 states, the National Federation of Independent Businesses COMMERCE BEYOND THE RACK TO OPEN DISTRIBUTION CENTER IN JANUARY By Richard N. Velotta senior staff writer North Las Vegas will become home to the West Coast distribution center of 2010's fastest growing e-commerce company next year. Montreal-based Beyond the Rack won $149,221 in tax abatements, $23,860 in tax deferrals and $162,000 in training grants Nov. 16 from the Nevada Commission on Economic Development. The commission granted the incentive package in a unanimous vote based on the company meeting two of three criteria for job creation and capital investment. The company will offer 102 jobs, 36 percent more than the statutory requirement for incentives, and will invest $1.2 million, 19 percent more than required. The company fell short on the third criterion, paying more than the state average wage, but incentive regulations | 21 NOVEMBER 2011 | require a company seeking abatements and deferrals to meet just two of the three. Beyond the Rack listed an average wage of $18.50 for its workers, 5 percent below the statutory requirement. Robert Gold, co-CEO and a founder of the company, said Beyond the Rack plans to open a 52,000-square-foot distribution facility in January, which he expects to grow to 150,000 square feet within three to five years. The company already has begun hiring the first 50 employees and by the time the center opens in January, it will have more than 100 employees. By the end of the fifth year, Gold expects to employ between 300 and 500 people. The company hasn't signed a lease, but Gold said the facility would be in North Las Vegas. Beyond the Rack is a private online shopping club for men and women seeking designer brand apparel and accessories with prices of up to 80 percent off retail store prices. Gold said the company considered locating its West Coast distribution center in Los Angeles — the source of most of its clothing line — but executives changed their minds to Southern Nevada because of lower rents, a larger workforce and greater support from state government leaders. Merchandise is offered to the company's 5.5 million members in limited-time events, most of which last about 48 hours. In addition to having about 70 packers and shippers, Gold said the North Las Vegas facility would have a photography studio and a staff of photographers and models to produce images of merchandise for sale. Gold said the company receives about 1,000 to 1,500 pieces of merchandise a day and produces 10,000 photographs a day for its online catalog. The company's distribution center also will serve as the company U.S. headquarters. Beyond the Rack will benefit from $72,733 in sales tax abatements in its first year of operation and $19,112 a year in modified business tax abatements for four years. The company will defer $23,860 in sales tax payments for five years and also will receive $1,588 per employee in federal training grants passed through by the state. Beyond the Rack's presence in Nevada is expected to net $2.1 million in new tax revenue and have an estimated economic impact of $175.6 million over 10 years. At that rate, each abated tax dollar would result in a $1,177 economic impact over 10 years. 13 breaks," he said in a release. "Just last week, a conservative judge appointed by President Reagan ruled that this legislation is constitutional, and I am confident the high court will do the same." A number of federal courts have weighed in on the law with sometimes contradictory rulings on the constitutionality of the law and the individual mandate. President Barack Obama signed the Patient Protection and Affordable Care Act into law in March 2010. The U.S. Supreme Court decided to use the case filed by the states, including Nevada, and the NFIB, to determine the constitutionality of the law. Nevada and the other states challenged ASSOCIATED PRESS HIGH COURT: In this May 3, 2011 file photo, the Supreme Court is seen in Washington. The Supreme Court said it would hear arguments in March over President Barack Obama's health care overhaul. (NFIB) is a party to the challenge. Randi Thompson, Nevada state director for the NFIB, said in a statement: "This act is already increasing the cost of health care on Nevadans, increasing costs to Nevada taxpayers for Medicaid and Medicare coverage, and causing business owners to even drop coverage for their employees. Health care needs to be more accessible and affordable, but this act is not the way to reach that goal." Others also weighed in on the decision. U.S. Sen. Dean Heller, R-Nev., said in a statement: "The law's excessive taxes, expensive regulations and questionable constitutionality are stripping businesses of the certainty they need to hire at a time when Nevadans and the rest of the country are desperate for jobs." But U.S. Senate Majority Leader Harry Reid, D-Nev., said the overhaul was benefiting Americans. "Prescription drug costs for seniors are falling as the Medicare 'donut hole' closes, insurance companies can no longer deny coverage to children with pre-existing conditions, and business owners are taking advantage of tax the law in federal court in the Northern District of Florida. U.S. District Court Judge Roger Vinson ruled in the states' favor and declared the individual mandate in the federal health care law unconstitutional. He declared the entire law unconstitutional without the mandate. The 11th U.S. District Court of Appeals then upheld Vinson's ruling on the individual mandate but said the rest of the law could stand. The U.S. Supreme Court will now take up the issues of whether the individual mandate is constitutional and whether the entire law is unconstitutional if the individual mandate is unlawful.