NFIB was successful once again in defeating many well-intended but ill-advised labor mandates in the 2017 legislative session. As our General Assembly prepares to adjourn, here is a recap with key takeaways for NFIB members.
Labor Mandates Die, Protection Added
Defeated
- HB 1246 (Clemmons)/SB 1106 (Kyle): Would have required an employer not to prohibit an employee from inquiring about wages of another employee, among several provisions.
- HB 477 (Clemmons)/HB 1105 (Kyle): Sought to establish a new state bureaucracy that would seek to “eliminate pay practices unlawful … by informal methods of conference, conciliation, and persuasion, and to supervise the payment of wages owing to any employee.”
- HB 1309 (J. Turner)/SB 1094 (Kyle): Would have created a paid sick leave mandate on all employers, regardless of size.
- HB 1184 (Powell)/SB 1141 (Kyle): Would have required all employers to give their employees six weeks’ paid leave for adoption, pregnancy, childbirth, or nursing an infant.
- HB 80 (Hardaway)/SB 1411 (Kyle): Would have established a state minimum wage of $15 as of July 1, 2017, among several provisions
- HB 1060 (DeBerry)/SB 1122 (Kyle): Would have phased in a state minimum wage of $10.10 by July 1, 2019, among several provisions
Passed
- HB 180 (Lynn)/SB 262 (Johnson): Preempts local governments in Tennessee from establishing “predictive or restrictive scheduling” laws being enacted in other cities. Employers need flexibility in this area and already work with employees to be as accommodating as possible.
Regulatory & Licensing
Passed
- HB 1405 (Keisling)/SB 1371 (Johnson): Clarifies the State Air Pollution Control Board is not required to grant an exclusion for local programs to block an industrial project based on factors (like local zoning) outside of air compliance considerations. Ensures regulatory authority for pipelines, compressor stations, and pipeline infrastructure projects remains with the Federal Energy Regulatory Commission, as authorized under the Natural Gas Act and the Pipeline Safety Act.
- HB 306 (Gant)/SB 1194 (Norris): Removes requirement for shampoo professionals to be licensed. Tennessee was one of only four states with this requirement.
Awaiting further action
- House Bill 1143 (Casada)/SB 363 (Haile): Passed House, awaiting action in Senate committee in 2018. Lawsuit pending. Follow-up legislation from 2016, seeks to clarify the “voluntary” provision in TCA 66-35-102 by prohibiting additional zoning changes from being conditioned on the allocation of rental units to be sold or rented at below market rates.
Defeated
- HB 622 (Favors)/SB 49 (Massey): Would have required licensure of persons engaged in lactation care and services and create a board of lactation consultants.
Several other attempts to require licensing of certain occupations have been put on hold during ongoing review required by last year’s passage of the Right to Earn a Living Act.
Tax Reform
Passed
- HB 320 (Tillis)/SB 1207 (Norris): Authorizes franchise & excise (F&E) taxpayers to elect to calculate the excise tax component of their quarterly estimated F&E tax payments based on an annualized method, as provided by Section 6655(e)(2) of the Internal Revenue Code. Extends the time period for a person claiming exemption from F&E taxes to file an application for such exemption, and decreases, from $1,000 to $200, the penalty for late filings of applications for F&E tax exemptions. Annualized method will allow taxpayers who receive a larger share of their income towards the end of their tax year to reduce their earlier estimated payments when they are realizing a lower share of income, and then make up for such reduced initial payments with their remaining estimated payments or the final payment due with their tax return. At this writing, the 2017-18 budget has not yet passed, and several other tax reforms were pending review in the finance committees.
At this writing, the 2017-18 budget has not yet passed, and several other tax reforms were pending review in the finance committees. The IMPROVE Act passed both chambers in late April and headed to the governor for his signature.
Health-care Mandates
Defeated
- HB 1137 (Casada)/SB 792 (Dickerson): Autism mandate that would have authorized use of applied behavior analysis.
Several other health-care mandates were defeated, as well.
Tennessee’s economic rankings continue to be stellar, which is not expected to change after another positive legislative session for small business.
