Past NFIB North Dakota Legislative Victories (2007-2017)

Date: July 21, 2015

Accomplishments for small business include property tax relief and protection of private property and defeat of minimum-wage increases

From the 2017 Session

Won Property Tax Relief
NFIB lobbied for the successful passage of Senate Bill 2206, which eliminates a sizable portion of county levy authority for human services (up to 20 “mills”) to provide property tax relief.

Over the last several biennia, lawmakers have been looking to identify areas for permanent property tax reform. Former Gov. Jack Dalrymple worked to push more state money into school districts to provide property tax relief. 

In addition, legislative leaders have looked into options to transfer the cost of social services from the counties to the state. With the passage of Senate Bill 2206, the state will assume costs statewide under a two-year pilot program in 2018 and 2019. Total appropriation for the two-year pilot is $160.7 million.

Defeated Minimum-Wage Increase
A perennial effort by cause groups or well-meaning lawmakers to raise the minimum wage occurs in every state legislature in the nation. A bid to not only increase North Dakota’s minimum-wage rate, but also empower the state labor commissioner to set future rates as he or she wanted, surfaced in the 2017 session of the Legislature.

NFIB/North Dakota helped defeat this bad idea by reminding lawmakers of what the minimum wage is and who it affects and doesn’t affect.

The minimum wage is earned by just 2.7 percent of the nation’s workers, according to the U.S. Bureau of Labor Statistics, and most of them “tend to be young. Although workers under age 25 represented only about one-fifth of hourly paid workers, they made up about half of those paid the federal minimum wage or less. Among employed teenagers (ages 16 to 19) paid by the hour, about 10 percent earned the minimum wage or less, compared with about 2 percent of workers age 25 and older.”

In short, the minimum wage is an entry-level wage earned mostly by teenagers and young adults still living at home. Increases in the minimum wage have only one major effect—eliminating entry-level jobs. Despite these facts, proponents of ever-increasing rates wrongly argue that they’re needed to lift people out of poverty, even though little to no evidence back it up.

Smoothed Unemployment Insurance Filings
NFIB/North Dakota helped pass a measure allowing for the electronic filing of employer unemployment contribution and wage reports, making this a much more effective and efficient process for all.

Streamlined Definition of a Primary Sector Business
For both employers and the government, a primary sector business is needed for tax and regulatory compliance, but North Dakota had a crazy quilt of definitions. With support from NFIB, legislation clarifying the definition of a primary sector business passed.

Protected Private Property Rights
The Fifth Amendment of the U.S. Constitution allows government to take private property for public use, but only with payment of “just compensation.” But in 2005 the U.S. Supreme Court issued a controversial decision, in Kelo v. City of New London, which held that local governments can use eminent domain to take private property—even if they simply intend to hand the land over to private developers, seeking to advance private profit interests.

In a 5-4 decision, the Kelo court ruled in favor of the City of New London; however, the states still retain the prerogative to provide added protections for landowners against these sort of “redevelopment” takings, whether by statute or through enforcement of more protective state constitutional standards. NFIB/North Dakota worked diligently for a new law that limits local water-resource districts from abusing their eminent domain privilege by requiring county commissions, as well, to approve property takings. That way, elected officials share in the decision made by the unelected appointees of various governmental bodies.

From the 2015 Session

Passed an apportionment of taxable income
This new law allows businesses that apportion income to voluntarily elect to use a single-sales factor. The measure allows North Dakota corporations to choose under which formula (three-factor apportionment or sales) they will be taxed.  The election is binding for five consecutive tax years, and qualifying pass-through entities could also make the sales-only election.  The bill was amended to include a stepped-in process that would include double weighted sales in 2015-2017, triple weighted sales in 2017-2019, and a single sales factor in 2019 and beyond. 
 
Won a balanced federal budget resolution 
Led by NFIB Leadership Council member Rep. Mark Dosch, North Dakota became the 27th state to pass a formal application to Congress calling for a convention for the sole purpose of proposing an amendment to the Constitution of the United States requiring a balanced federal budget. Congress has placed the American people in an unconscionable position of being responsible for a debt it did not have to create. The North Dakota Legislature meets every two years and is required by its constitution to balance its budget.  If North Dakotans can get the job done in 80 days or less every other year, then a Congress that meets year round should be held to at least the same standard.  The resolution was HCR 3015.
 
Defeated a resolution  to increase the federal minimum wage to $10.10 an hour
NFIB/North Dakota succeeded in reminding legislators that the minimum wage is an entry-level wage, earned primarily by teens and young adults starting out on their work lives, and that increasing it only eliminates opportunities to enter the workforce. 

From the 2013 Session

Won across-the-board income tax reductions
NFIB/North Dakota helped win passage of legislation reducing individual income tax rates by an additional 19.3 percent ($200 million in savings over two years) and state corporate income tax rates by 12 percent ($50 million over two years).

Won further property tax reductions 
NFIB/North Dakota supported legislation that will further reduce property taxes on top of significant reductions passed in 2009 and 2011. North Dakota property owners will see their property taxes reduced by an additional 20 percent on their November 2013 property tax bills.

Passed Workers’ Compensation reforms to reduce rates
Enacted workers’ compensation reforms to define pain as a symptom and not a substantial acceleration or substantial worsening of a pre-existing injury, disease or other condition. This will help limit inappropriate claims that drive up workers compensation rates.

Successfully defeated Big Labor by enacting a prohibition on Project Labor Agreements (PLAs) in North Dakota
A PLA is a pre-hire collective bargaining agreement with one or more labor union that establishes the terms and conditions of employment for a specific construction project. PLAs shut out small business non-union contractors from bidding on such projects.

Obtained new tort reform law shortening filing periods
Of all the worries small businesses have just running a daily operation, a frivolous lawsuit is the joker in the deck that can shutter an enterprise for good. That’s why NFIB will always push for tort reform aimed at reducing this unexpected worry. This year, NFIB helped win a law shortening the period for filing cases, for both general damages and personal-injury claims, from the current six-year statute of limitations to three years. Not only will this dampen lawsuit abuse, it could also lead to lower insurance premiums as well.

Secured new property rights law against trespassing
NFIB advocated for the passage of a new property-rights law that says owners or lessees of land don’t owe a duty of care to an adult trespasser and are not subject to liability for any injury to an adult trespasser.

From the 2011 Session

Won across-the-board tax reductions
Intense lobbying from NFIB/North Dakota helped win passage of legislation reducing individual income tax rates by 18 percent ($120 million in savings over two years) and state corporate income tax rates by 20 percent ($20 million over two years).

Obtained new tort reform law shortening filing periods
Of all the worries small businesses have in just running a daily operation, a frivolous lawsuit is the joker in the deck that can shutter an enterprise for good. That’s why NFIB will always push for tort reform aimed at reducing this unexpected worry. This year, NFIB helped win a law shortening the period for filing cases, for both general damages and personal-injury claims, from the current six-year statute of limitations to three years. Not only will this dampen lawsuit abuse, it could also lead to lower insurance premiums as well.

Secured new property rights law against trespassing
NFIB advocated for the passage of a new law property rights law that says owners or lessees of land don’t owe a duty of care to an adult trespasser and are not subject to liability for any injury to an adult trespasser.

From the 2009 Session

Saved North Dakota millions of dollars from future unemployment insurance tax hikes
In the depths of a national recession and with their unemployment insurance trust funds facing insolvency, numerous states jumped at the opportunity to get some of Uncle Sam’s free money under the American Recovery and Reinvestment Act. NFIB was the first business association to sound the alarm that it wasn’t free, but in fact had so many strings attached that future increases in unemployment insurance taxes would come soon, repeatedly, and expensively. Working with State Rep. George Keiser, who also saw the hidden costs, NFIB put together a business coalition that gave the governor enough political cover to say to Uncle Sam, “Thanks, but no thanks.”

Won $90 million in tax cuts
We lobbied heavily for Senate Bill 2199, which provided $90 million in tax cuts. The cuts reduce all five state income-tax brackets by a collective 12.3 percent. The highest tax bracket falls from 5.54 percent to 4.84 percent; and the lowest falls from 2.1 percent to 1.84 percent. Additionally, changes in the corporate income-tax rate eliminated two of five brackets. Now, those businesses earning $50,000 or more will be in the highest bracket with a new, lower rate of 6.4 percent. Those corporations earning less than $25,000 will see a new rate of 2.1 percent.

Secured $295 million in property tax relief
We worked with Gov. John Hoeven to help pass Senate Bill 2199, his property tax relief measure, which reduces the levy by $295 million. SB 2199 used a reduction in the mill levy to help fund school districts on a dollar-for-dollar basis. In effect, property taxes drop by 15 percent to 18 percent for the 2010 and 2011 tax years. The law also sets aside another $295 million from the permanent oil trust fund to sustain the property tax relief for the following biennium.

Guarded against premium increases in the state’s workers’ compensation system
We monitored more than two dozen bills dealing with the state’s workers’ compensation system, after voters ended the Workforce Safety and Insurance agency’s independent status and moved control of it over the governor’s office. Much of the legislative attention was focused on keeping WSI on solid financial footing and guaranteeing its reserves. We succeeded in making sure none of this activity resulted in higher workers’ compensation premiums for small business owners.

Defeated product liability legislation aimed at punishing North Dakota businesses for defects in foreign-made goods
We succeeded in stopping House Bill 1560, which would have put North Dakota businesses on the hook for faulty foreign-made goods. Had it become law, businesses would have been subject to potential liability if a product or component was manufactured in a foreign country.

Prior Years’ Victories

Led reform of unemployment insurance funding, improving rates
Unemployment rates were adjusted to slightly improve those for positive-balance employers, while requiring that negative-balance employers pay more of their fair share. Appropriations approved for North Dakota Job Service included $1.255 million for Workforce 20/20 funding, a program that is very popular with NFIB members. Small business is represented on an Unemployment Insurance Advisory Council created to advise NDJS regarding program operations, effectiveness and fairness.

Passed business-friendly safety legislation, helping keep insurance rates down
Workforce safety insurance and tort reform bills were supported by a business coalition, of which NFIB was a part, and were passed into law. The most significant of those, placed a limit on the period of time an injured worker can remain on temporary partial disability. Another measure, known as the “Cheeseburger Bill,” limits the liability of retail and wholesale food sellers for obesity and other health-related claims.

Blocked paid vacation bill, avoiding increased payroll costs
A paid holiday for veterans on Veterans Day was defeated as a result, in part, of NFIB opposition. The bill would have required employers to give veterans a paid holiday on Veterans Day, if they requested it, to the exclusion of other workers. Employers could have applied to the state for relief in individual cases.

Defeated minimum wage increase, protecting jobs and keeping payroll costs down
A bill was introduced that would have raised the state minimum wage for workers above the current federal standard of $5.15 per hour. We testified against the bill in committee and it was defeated in the House.

Stopped youth-incentive tax credits
Due primarily to our strong opposition, the youth investment initiative measure was soundly defeated in the fall of 2002. This ill-advised proposal would have provided tax refunds and tuition credits to citizens aged 20 to 30 over a period of five years simply for living in the state.
 

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