The Second Regular Session of the Colorado General Assembly adjourned on May 11, 2016, with some big victories for small business, reports NFIB State Director Tony Gagliardi
Hospital Provider Fee Shift Killed
Efforts to move the state’s Hospital Provider Fee program to an “Enterprise,” thereby exempting it from the restrictions of TABOR failed to pass, thanks to the Senate Finance Committee. Big business and education interests worked hard to convince the Legislature that this was allowed under the law. The Senate Finance Committee wasn’t convinced.
In 2016, NFIB/Colorado conducted a member survey asking if the Hospital Provider Fee should be moved out from under the requirements of TABOR for the purpose of using collected funds for other purposes, such as transportation and education.
More than 64 percent of those responding opposed making any changes to the program. Hospital provider fees are used to increase reimbursement to hospitals for providing care under the state medical assistance program.
The hospital provider fee program will remain subject to the rules and requirements of TABOR.
Ban the Box Defeated
Stopping the passage of House Bill 1388 was another key victory for NFIB/Colorado. HB 1388 would have prohibited any employer from making an inquiry about a job candidate’s arrests or criminal convictions until the candidate has been offered an interview or a conditional offer of employment—popularly called ‘Ban The Box.’
In a 2014 survey, NFIB members rejected this idea by 90 percent. HB 1388 would also have required employers to maintain the application for a period of nine months after its submission to the employer. This requirement would have been contrary to many federal laws that apply to retention of applications and resumes under Title VII, the Americans with Disabilities Act, and the Age Discrimination in Employment Act (ADEA).
Concerns over workplace security and skyrocketing litigation costs have made pre-employment background checks an essential tool for many businesses. Background checks also help prevent lawsuits against companies over negligent hiring in cases in which an employee’s actions harm someone else.
Meanwhile, the federal government continues to use its own interpretation of ‘Ban The Box’ in order to punish employers. This has drawn a lawsuit from nine state attorneys general who accuse the federal government of overreaching. They claim that Equal Employment Opportunity Commission’s “true purpose may not be the correct enforcement of the law, but rather the illegitimate expansion of [discrimination] protection to former criminals.”
Small Business Given Due Process in Audits
Senate Bill 16-036 allows small-business owners to have access to due process when appealing a sales tax audit opinion by the Department of Revenue. Currently, should one desire to appeal an audit decision to the district court level, there is a requirement in which the total amount of the DOR’s audit decision including penalties and interest be deposited in escrow with the director of the Department of Revenue, or a bond be posted for twice the amount owed to DOR.
SB 036 would remove all the requirements of deposit for appeal at the district court level. The effect of SB 036 will be that businesses will no longer be forced into settlements pertaining to a sales tax audit because the business owner cannot afford to post the amount owed upfront or the expense to post a bond for twice the amount owed. Senate Bill 036 passed both houses of the Legislature unanimously.
State Work Status Form Eliminated
House Bill 16-1114 removes the requirement for employers in the state to file an Affirmation of Legal Work Status form with the Colorado Division of Labor and Employment after completing and filing an I-9 form with the federal government.
All the affirmation form does is prove to the state that you filed the required form with the feds. NFIB membership thanks Rep. Brian DelGrosso, an NFIB member himself, for his efforts in making Colorado an easier place to do business for the real job creators—Small Business.
According to NFIB/Colorado State Director Tony Gagliardi the form was “an absolute waste of time for all parties involved,” being as it was an exact duplicate of questions asked on the Federal I-9 form.
Examination of Big Business Tax Breaks
Senate Bill 203 directs the Office of the State Auditor to conduct evaluations of all state tax expenditures that are tax-related provisions where tax revenue is reduced.
Examples are deductions, exemptions, credits for job creation, or special tax rates for certain types of industries. It is imperative the more than $4 billion dollars of state revenues being used for these tax exemptions and credits be measured for their effectiveness.
If businesses receiving preferential treatment are indeed creating the jobs that warrant it, then let’s continue them. But we don’t know that until we find out, which is what SB 203 would do and why NFIB supported it.
The majority of small-business owners who create almost all the new jobs in Colorado receive no tax breaks. Big businesses and large corporations are the almost exclusive beneficiaries of them.
The cost of government never declines, so if you’re giving free passes to some businesses on contributing revenues to operate government, you’re placing more of a financial burden on those already paying without any tax breaks. Senate bill 203 passed both houses and is now on Gov. John Hickenlooper’s desk.
Need a Speaker for Your Event?
NFIB/Colorado State Director Tony Gagliardi has the inside story on what just happened in the Colorado Legislature, and what it means for small business.
If you’re hosting a gathering who would like a report on the state of small business in Colorado, consider inviting NFIB State Director Tony Gagliardi to speak to them.
What was left in the wake of the Colorado Legislature’s May 11 adjournment on vital small business issues such as taxes, regulations and health care?
What lies ahead when the Legislature reconvenes in January 2017? What is Congress doing, or not doing, to revitalize small business? What about the election ahead?
Should any of these small-business issues be of interest to your group, send an email to Tony a couple of weeks in advance of your event to see if he might be available. There is no cost to your organization.
