Recent NFIB/New York victories:
Stopped Paid Family Leave Mandate
With the strong response of our members, the legislative proposal to mandate that virtually all private employees be entitled to up to 12 weeks of paid family leave, through the state’s temporary and disability insurance program was stopped.
Enacted Local Government Consolidation Bill
Gov. David Paterson this year signed into law legislation entitled “The New NY: Government Reorganization and Citizen Empowerment Act,” which will make it easier for communities to consolidate costly, antiquated and redundant local governments. Through consolidations and more efficient delivery of services, NFIB believes real savings can be achieved at the local government level that will not only stem the out of control growth of local property taxes, but also lead to their reduction, which should be our ultimate goal.
Stopped costly “farm labor” bill
NFIB strongly opposed and stopped legislation that would have imposed higher, job-killing labor costs on New York farms, including new and increased overtime, workers compensation and unemployment insurance costs. This bill would also have promoted the unionization of farm workers.
Required regional economic development offices to provide assistance with regulatory compliance
The maze of complex and ever changing regulations imposed by New York State pose a significant challenge for small businesses. Unlike large companies, they do not have the benefit of in-house counsel or compliance departments to keep them informed on new requirements imposed on them. And, in many cases, the red tape involved with compliance of even known regulations can overwhelm a small business. Small business owners want to comply with the rules, but all too often it is difficult to figure out exactly what they are.
NFIB supported legislation that was signed into law that would provide much needed assistance to small businesses by authorizing regional economic development offices to provide help with regulatory compliance. This is a tremendous benefit for small businesses and adds a valuable service to existing economic development offices.
Achieved greater access to affordable capital for small businesses
NFIB supported legislation that would provide greater access to affordable capital for small businesses through the Excelsior Linked Deposit Program. Linked deposit programs provide businesses with access to affordable capital by leveraging state resources. Presently, under linked deposit programs, eligible businesses can obtain loans from financial institutions at a lower interest rate than the prevailing rate on such loans, thereby making borrowing less expensive.
The opportunity to borrow extra working capital at fixed, below-market rates, and to refinance old debts by consolidation, allows small businesses to reorganize their operations in order to become more competitive, grow and create new jobs. Legislation was signed into law expanding the successful program by allowing businesses located in certain areas designated under the Federal Community Renewal Tax Relief Act of 2000 to be eligible to access affordable capital through the linked deposit program. This is a great benefit to small businesses across the state, as it will provide even greater access to capital.
Stopped the Tax Department from accessing certain business bank records
The Executive Budget included a provision that would have created a Comprehensive Program to Increase Compliance with the Tax law that NFIB was able to have removed. The program would have required banks to annually turn over to the Tax Department records of bank settlements, cash deposits, and check deposits in the private bank accounts of all registered sales tax vendors “to determine if there may be underreporting of sales and associated sales tax and/or income tax.” In other words all banking records of any small business that collects sales tax for the state would have been automatically turned over to the state.
Creation of New York Small Business Task Force
Gov. Paterson this year created the New York Small Business Task Force to focus existing state resources and develop new strategies to promote the growth and development of small business enterprises in New York.
The task force is comprised of over 50 representatives including small business advocacy groups such as NFIB, state agencies, capital lenders, entrepreneurial assistance centers and some industry specific organizations. Gov. Paterson named NFIB/NY State Director Mike Elmendorf to the task force. The creation of this task force was initiated out of a recommendation NFIB made to the governor’s office after a similar group in the mid-90’s proved to be very productive.
2009-2010 NFIB/Nevada Legislative Victories
Defeated healthcare mandates for eating disorders and acupuncture
NFIB/Nevada succeeded in stopping two healthcare mandates on eating disorders and acupuncture from passage. Mandates, which are orders by state government to add more and more conditions to basic healthcare plans, drive up the cost of medical coverage and put farther out of affordability range for small business owners.
Stopped anti-employer workers’ compensation bills
Working with other business association, NFIB/Nevada was successful in defeating a number of bills that would have driven up the cost of workers’ compensation rates. One bill would have required an employer, not an employee, to bear the burden of proof in showing an injury occurred at work. Another measure would have created a new cause-of-action lawsuit. Senate Bill 195, a compromise measure, did eventually pass and was signed into law by Gov. Jim Gibbons. Although it includes some provisions NFIB/Nevada testified against, including one that prevents injury awards from reflecting the most recent cost saving medical advances and treatments, SB 195 was far better than what was being pushed by the labor lobby and should not result in significant changes in how the workers’ compensation system is administered in Nevada.
Prevented passage of medical malpractice bill that would have increased premiums
NFIB/Nevada helped defeat Assembly Bill 495, which would have removed the $350,000 cap for noneconomic damages in medical malpractice cases, had it passed. Proponents argued that the removal would only have been for cases of gross negligence on the doctor’s part. But upon closer inspection, it also would have provided incentives to file lawsuits on many alleged cases of gross negligence. Although it passed the Assembly, NFIB helped kill it in the Senate. Had it become law, the cost of insurance premiums would have shot up.
Killed unfair trade practices bill that would have made it more expensive for small businesses to defend themselves against accusations of alleged deceptive trade practices
Assembly Bill 22 narrowly escaped becoming law. In spite of NFIB’s opposition, it managed to pass both houses of the legislature, but was vetoed by Gov. Jim Gibbons. The legislature later tried, but failed, to override the Governor’s veto. Had it become law, AB 22 would have opened up businesses accused of deceptive trade practices to expensive litigation, including class-action lawsuits, rather than have such accusations adjudicated, as they are now in the less expensive administrative/governmental process.
Past NFIB/Nevada victories:
Defeated business profits tax
NFIB was instrumental in defeating the proposed 4 percent business net profits tax. This would have taxed small-business owners an additional 4 percent on any net profits.
Defeated gross receipts tax
NFIB led the fight to defeat this legislation that would have levied a 1 percent tax on gross sales to business. Businesses that fund 100 percent of health insurance premiums for their employees would have been exempted from this tax. An undue burden would be placed on small business.
Successfully defended the right to work law, ensuring that employers retain hiring and firing authority
By defending the state's 'right to work' status, NFIB continues to ensure that Nevada employers can make the hiring and firing decisions for their own businesses.
Stopped frivolous lawsuits, helping keep legal and insurance costs down
NFIB/Nevada joined forces with business interests across nearly all industries to defeat Question 4 on the November 2004 ballot, which would have placed virtually no limits on trial lawyers' ability to file frivolous lawsuits.
Defended Nevada's right-to-work status
Under the guise of a "fair share agreement" various labor groups launched a direct attack on Nevada's right-to-work law by attempting to apply a court decision from a public employee case to all workplaces.
Strengthened small-business impact statements
Worked to clarify and strengthen how business impact statements of local ordinances and regulations are developed and produced by local governments.
Defeated immediate and indexing minimum wage increase
Unions attempted to impose an immediate increase in the minimum wage as well as benchmarking it to the federal minimum wage and creating an automatic annual increase based on the CPI.
Lowered the business payroll tax rate
The Modified Business Payroll Tax for businesses (except financial institutions) was lowered to .63 percent (down from .65 percent) for the 2005-2007 biennium. The reduction expires on June 30, 2007 unless extended by a future legislature.
Supported replenishing the Rainy Day fund
Nevada's Rainy Day fund was drawn down significantly in the 2003-2004 budget. This year's revenue increases were, in part, placed back into the fund to hopefully lessen the need for increased taxes in future years.
VICTORY: Thanks to NFIB members throughout the state, Republicans maintained control of the state senate and increased their presence in the state assembly in 2002. Now, when tax talk heats up during the session, they will remember that NFIB Nevada members were there for them, and they'll be there for us.
VICTORY: In spite of our victories in the fall 2002 election and our success against taxes last session, the 2003 session will be an uphill battle against those who are determined to tax businesses "for the privilege of doing business in Nevada."
VICTORY: NFIB actively worked for passage of legislation to require state and local governments to justify any proposed small business regulation. The new law includes an appeal process for small business as well as a requirement that small businesses be consulted prior to implementation of such a regulation.
2009 NFIB/New Mexico Legislative Victories
Killed 12 tax-increase proposals, including ones to raise personal income and corporate rates to raise
During the 2009 Session, 12 tax bills were introduced, including two to raise personal income and corporate rates. NFIB succeeded in holding Gov. Bill Richardson to his word not to boost tax rates. But tax increases are a panic button politicians like to push in a recession. NFIB expects the legislature once again to put tax increases on the Governor’s table.
Stopped a plan to impose a government-run healthcare system in New Mexico
As expected, all the healthcare bills from the 2008 legislative session surfaced again in 2009, including one calling for the establishment of a government-run, universal healthcare system in New Mexico. NFIB persuaded some lawmakers to look at pooling options and other market-based solutions, and in the end this made a difference in stopping the state’s takeover of the issue.
Prevented passage of a minimum wage bill that would have tied future increases to the Consumer Price Index
NFIB helped defeat a bill that would have provided for automatic annual increases in the state’s minimum wage based on increases in the Consumer Price Index. This legislation would have been detrimental to New Mexico job growth and small businesses start-ups.
Defeated a proposal to require all pass-through entities to withhold taxes on all payments
The state’s tax department proposed to shift the burden of payment of certain taxes from the State to businesses. By doing so, the department estimated $40 million in additional revenues could be recouped. It was proposed that any pass-through entities -- generally partnerships, LLCs, and sole proprietors -- be required to withhold not only taxes on the compensation but also on other pass-through monies as well. The withholding payments would have been made quarterly. The individual taxpayer would still have been required to pay estimated monthly payments to offset the difference of the withholding and other income sources. NFIB worked with other business groups to defeat this proposal. We will keep a watchful eye in case this proposal resurfaces.
Beat back a proposed change in the gross receipts tax on professional services
NFIB stopped Senate Bill 283 from passing. The measure would have changed the Tax Administration Act to require architects, engineers, attorneys, and accounting professionals to pay gross receipts in the location at which the service was rendered, not at the location of the professional business where the services were performed.
Past NFIB/New Mexico victories:
Defeated statewide minimum wage increase, keeping New Mexico's small businesses competitive with surrounding states
The legislature and Gov. Bill Richardson proposed raising the state minimum wage to $7.50. This increase would have put New Mexico small businesses at a disadvantage against out-of-state competitors. It would also have encouraged New Mexico small businesses to move out of state.
Cut income and capital gains taxes, saving small-business owners $360 million
NFIB/New Mexico helped pass $360 million in cuts in both income and capital gains taxes. The move cuts the top individual income tax rate from 8.2 percent to 4.9 percent over five years; it also cuts capital gains taxes by 50 percent. Tax situations vary; however, a single business owner with $200,000 in taxable income could save $4,600 per year when this is fully implemented. A married owner at the same taxable income would save about $1,600.
Defeated single-payer, government-run health care system, keeping health-care decisions in the hands of small-business owners
Proposals have called for all insurance payments -- individual and business premiums, Medicare and Medicaid payments, and state and local government premiums -- to go into a "pot" to be used by state government to pay for all medical costs. This would create a government-controlled health-care system similar to that of Canada or Cuba. Experience elsewhere indicates the government always raises premiums or rations services under this type of system.
Limited state government's eminent domain authority
The U.S. Supreme Court Kelo decision confirmed government authority to condemn private property for use of economic development. The Supreme Court, in the same case, recognized the right of state legislatures to limit that authority in their own states. NFIB helped pass legislation to limit the eminent domain authority of state and local governments in the last legislative session.
Cut income and capital gains taxes by $360 million
NFIB/New Mexico helped pass $360 million in cuts in both income and capital gains taxes. The move cuts the top individual income tax rate from 8.2 percent to 4.9 percent over five years; it also cuts capital gains taxes by 50 percent.
Defeated single-payer, government-run health-care system
Every year proposals are introduced to establish this costly and ineffective health-care system. Proposals have called for all insurance payments -- individual and business premiums, Medicare and Medicaid payments, and state and local government premiums -- to go into a "pot" to be used by state government to pay for all medical costs in the state (state government becomes the "single payer").
Blocked a five-cent per gallon gasoline tax
The legislature rejected, by a single vote, a proposal to increase the gasoline tax by five cents per gallon for 10 years. NFIB's lobbying efforts helped swing several votes on this critical issue. This bill, if passed, would have had significant impact on NFIB members who rely on delivery or service vehicles.
VICTORY: The 2003 Legislature enacted a major income tax cut supported by NFIB. The new law cuts the top income tax rate from 8.2 percent to 4.9 percent and cuts capital gains taxes by 50 percent. The new rates will be phased in over five years. The total tax cut will be $360 million per year when it is fully implemented. The lower top rate makes New Mexico competitive with Arizona and Colorado for the first time.
VICTORY: Vigorous opposition from NFIB/New Mexico helped kill a bill that would have gutted New Mexico's employment-will-law. The "Paycheck Protection Act" would have prohibited employers from laying off employees if the economy worsened, or if competitive conditions created economic hardship.
New Governor Bill Richardson has promised to cut taxes, and NFIB is working hard to ensure that any changes in the tax system benefit the small business community.
HOT BUTTON: The New Mexico Legislature is considering a bill that would cut New Mexico income taxes by $84 million. The bill would remove several thousand low-income New Mexicans from the tax rolls entirely and reduce the top income tax rate from 8.2 percent to l7.9 percent.
VICTORY: Vigorous opposition from NFIB/New Mexico helped kill the Paycheck Protection Act. The bill would have prohibited you from laying off employees if the economy turned down or of you faced increased competition. The bill would have gutted New Mexico's employment-at-will law.
2001:
Employee Relations: The legislature killed identical bills introduced in the House and Senate by Rep. Ray Ruiz (D-Albuquerque) and Sen. Linda Lopez (D-Albuquerque).
The "Paycheck Protection Act" would have prohibited firing from firing employees for any reason other then job performance. Employers could not have laid off employees because of a business downturn caused by a poor economy, a new competitor or loss of a major customer.
The "Job Protection Act" would have required employers to give employees 180 days notice and job retraining if their jobs were transferred to "low wage" countries.
2000:
Unemployment Insurance Rates Cut: An unemployment Insurance rate cut of $31 million, an NFIB priority for the session, was signed into law by Gov. Gary Johnson.
Catastrophic Care Health Insurance: An NFIB-sponsored "catastrophic care" health insurance bill designed to lower costs for small businesses was introduced and passed the House.
Minimum Wage Increase: Gov. Gary Johnson vetoed a bill sponsored by Sen. Phil Maloof (D-Albuquerque) and opposed by NFIB, which would have increased the state minimum wage from the present $4.25 per hour to $6.15 by July 1, 2003. Gov. Johnson had vetoed a similar bill, also sponsored by Sen. Maloof, after the 1999 legislative session.
Family Leave: NFIB also helped kill a bill allowing parents to draw Unemployment Insurance benefits for up to one year to take care of new children.
1999:
Single Payer Health System: Quick action by NFIB members helped kill a bill that would have made the state the sole-source provider of health care insurance in New Mexico.
Mental Health Parity: NFIB discussions with Governor Gary Johnson resulted in a veto of a mental health parity insurance coverage mandate.
Minimum Wage Increase: Governor Gary Johnson vetoed a bill sponsored by Senator Phil Maloof (D-Albuquerque) and opposed by NFIB/NM increasing the state minimum wage to $6.15 per hour by July 1, 2002. Also, the Senate Corporations Committee killed a "living wage" bill sponsored by Senator Linda Lopez (D-Albuquerque) that would have raised the state minimum wage to $9 per hour.
1998:
Labor Unions: Rep. Kip Nicely (R-Albuquerque) introduced a bill to prohibit labor unions from using dues money for political purposes without the prior approval of union members. The bill required written authorization from union members and creation of a separate political action committee account for political expenditures by unions. The bill died on its first hearing in the House Labor committee.
Unemployment Insurance: An Unemployment Insurance rate cut bill, sponsored by NFIB member Rep. Jerry Sandal (D-San Juan), resulted in $40 million in savings for New Mexico businesses. The bill cut rates by 33 percent to 66 percent over two years, with a long-term 10 percent reduction.
1997:
Whistleblower Protection: The legislature, with help from NFIB/New Mexico, killed the Whistleblower Protection Act sponsored by Rep. Max Coll (D-Santa Fe). The bill would have prohibited businesses from firing employees who reported their employer for violating a law or regulation. The bill would not have required the report to be true, and would have even protected reports made directly to the news media.
1996:
Minimum Wage: NFIB, supporting the power of the marketplace to set wages, helped kill an increase in the state minimum wage.
2009 NFIB/Wyoming Legislative Victories
Won protection for small business owners against the predatory pricing of big-box stores
Although it did not go far enough, Senate File 0112, which NFIB lobbied for in its various forms, does give some new protection to small business owners against predatory pricing tactics from big-box stores by prohibiting actions that would prevent or destroy competition.
Halted a greater government incursion into a company’s sick-leave policy
House Bill 0181 would have prohibited employers from terminating employees who used the company’s sick-leave policy. The measure sounded innocent enough, but when NFIB looked closer, there was much more than met the eye, setting small business owners up for potential lawsuits. In the end, NFIB helped convince lawmakers that HB 0181 was more an interference between employer and employee than it was any new and understandable right.
Stopped mental injuries from being added to the list of ailments covered by workers’ compensation
Workers’ compensation premiums are one of a small business owner’s highest costs. Add some new coverage and rates only shoot higher. Senate File 0018 would have added mental injury to the list of illnesses covered under workers’ compensation. It passed the Senate, but NFIB helped kill it in the House of Representative. NFIB reminded legislators that 80 percent of NFIB members opposed covering mental injuries under workers’ compensation on the 2009 ballot. Members’ votes contributed to the success of SF 0018’s defeat.
Defeated attempts to hold small business owners responsible for the employees of independent contractors
It would be nice to report that Wyoming legislators are resistant to bad national trends, but that is not always the case. One of organized labor’s goals is to place as many restrictions as possible on small business owners who operate as independent contractors. House Bill 0273 would have held the owner of a property legally responsible for the employees of an independent contractor working on it. NFIB succeeded in contributing to this bad idea’s demise.
Strengthened state’s eminent domain law
The U.S. Supreme Court’s Kelo decision made it much easier for governments to seize property under eminent domain laws, but it also left it to state governments to curtail abuses of the law. Lobbying by NFIB/Wyoming helped strengthen the law against property seizures.
Past NFIB/Wyoming victories:
Defeated health insurance mandates
NFIB was instrumental in defeating legislation that would have added several mandates on health insurance in Wyoming. This saved employers and employees an average of 10 percent on their health insurance premiums.
Defeated legislation that would have increased workers' comp rates for small business
NFIB led the fight to defeat a rule change that would have rewritten our workers' comp formulas. This rule, if adopted, would have lowered workers' comp rates to large corporations and raised rates to small-business owners. The result was that small-business owners saw no increase in average workers' comp rates.
Defeated workers' compensation employer fault provision
NFIB/Wyoming and its members played a key role in defeating a proposed rule that would have introduced the concept of fault by the employer into third-party recoveries for workers' compensation, overturning more than 90 years of Wyoming law.
Prevented workers' compensation rate increases
With passage of SF 79, large rate increases were avoided when the date to have the reserve fund become solvent was extended from 2008 to 2013 and reserves could be discounted for future value.
Defeated increased exemptions for bankruptcies
This bill would have greatly increased the amount of property a debtor could keep from his or her creditors in a bankruptcy, which in turn would have greatly reduced the amount of money a business could have recovered from the debtor.
Passed the Commonsense Consumption Act
In the 2005 session, NFIB/Wyoming was able to get the Commonsense Consumption Act passed, which will protect any business producing, selling or serving food from suits by obese people claiming it was the fault of the business that they got fat. NFIB/Wyoming also succeeded in amending the law to apply to many more businesses than originally proposed.
Supported sales and use tax exemption for manufacturing equipment
NFIB supported HB 44, which exempts the purchase of manufacturing equipment from sales tax. Small business can now expand at a lower cost. This bill will also attract new businesses to Wyoming.
Gasoline and diesel fuel tax increases stopped: NFIB/Wyoming helped defeat two proposed fuel tax increases. One bill would have increased fuel taxes at 2 cents per gallon, the other 6 cents per gallon, phased in over three years.
Sales and use tax exemption of manufacturing equipment: HB 44 exempts the purchase of manufacturing equipment from sales tax. Small business can now expand at a lower cost. This bill will also attract new businesses to Wyoming.
Workers' compensation – cost of recoveries: NFIB/Wyoming played a key role in defeating HB 130, which intended to have the workers' compensation system pay a portion of an employee's attorney's fees in suits involving third parties.
Tort reform: HJR 11 amended the constitution to allow the establishment of a medical review panel for malpractice cases in an effort to weed out poor cases and ease up on the caseload in the court system.
Workers' compensation – back to work: HB 53 simplifies and improves the mechanism used to get injured employees back to work quicker when they can handle duties that are lighter than their previous position required.
VICTORY: 2002 -- NFIB/Wyoming worked hard to defeat a proposal that would have mandated parity for mental health coverage on health insurance policies, a mandate that could have increased premiums three to five percent.
VICTORY: 2002 -- NFIB is closely monitoring proposals coming before the full legislature to ensure small business is not adversely affected. Health insurance costs and availability are currently being reviewed by several legislative committees and some recommendations may work against small business' efforts to make insurance affordable employees.
VICTORY: 2001 -- With hard work and by not panicking, NFIB/Wyoming members were successful in the defeat of many proposed new taxes and tax increases. Total savings to Wyoming's small business exceed $100 million.
2000:
Tax Increases Defeated: All of the proposed tax increases that NFIB opposed were defeated. These included increases to the general sales tax, fuel tax, a new sales tax on services and a gross receipts tax. Taxes for small businesses will remain at their current levels for the next year. Total savings by defeat of these tax bills could exceed $300 million.
New Program Limitation Enacted: A small but important step in preventing undue growth in government occurred with the passage of HB 142, New Government Programs - Limitations. Hopefully the legislature will recognize the need to eliminate programs when they feel the need to add new ones. Child Support Withholding Help Available - Small businesses faced with the complex task of calculating multiple child support withholding orders will now be able to get assistance from their local clerk of court. A provision included in HB 30, Child Support Income Withholding, now allows the clerks of court to assist employers who want help making the calculations.
State Owned Telecom/Electrical Transmission Facilities Defeated: With the defeat of SF 76, Infrastructure Authority, the State of Wyoming will not be getting into private business by operating telecommunications or electrical transmission facilities. At the same time, constitutionally protected funds in the Permanent Mineral Trust Fund will not be at risk of loss and won't be used to subsidize government competition with the private sector.
1999:
Increased Sales Taxes: House Bills 139, 195 and 197, all dealing with increased sales taxes, were defeated, which saved the taxpayers more than $200 million. Additionally, NFIB's retail members in areas that must compete with states with lower or no sales taxes were protected from further competitive disadvantage.
In-State Contractor Preference: Passage of House Bill 310 will help ensure that only local Wyoming contractors qualify for a 5 percent bid preference on public works projects and that shell corporations will not.
1998:
Workers' Compensation: Legislation passed which will give employers a premium tax credit from the workers' comp fund. Also, NFIB helped ensure that an existing rate reduction program was not repealed as proposed in the bill.
Sales Tax: NFIB helped to defeat a proposal to increase the statewide sales tax to generate additional education funds.
Health Insurance: The Legislature defeated a bill mandating certain benefits which would have increased private health insurance costs.
1997:
Environmental Self-Audit: NFIB's biggest victory of the session came when, after nearly two years of effort, the Department of Environmental Quality was forced to develop rules that would implement a non-enforcement policy for small businesses who voluntarily report environmental problems to the department.
Fuel Tax Increase: Defeat of the fuel tax increase by the Senate was an important victory. Concerns about increased taxation, increased cost of doing business, inefficient government operations, and the strong voices of NFIB members led to its defeat.
Third Party Recovery in Workers' Compensation: The defeat of HB 107, which would have reduced recovery by the state from a responsible third party in workers' compensation contested cases, protected the soundness of the workers' compensation fund and preserved fair administration of the program.
1996:
Employment - Good Faith Disclosure: Senate File 36 allows employers to give good faith references for employees without fear of lawsuit.
Fuel Tax Increase: House Bill 18, which would have raised all fuel taxes by 5 cents per gallon, was defeated during this session, but may be even more important next year if the legislature looks for tax increases to fund education.
Copyright Contracts: Passage of House Bill 33 will help keep copyright organizations from harassing small businesses who play a radio in their place of business for incidental purposes.
Health Insurance - Adult Wellness Benefits: Employers and employees will not be forced to purchase unwanted or unneeded insurance benefits. Senate File 44, which would have required all health insurance policies to include benefits for wellness examinations, was defeated.
Passed regulatory flexibility legislation
This reg-flex legislation gives small businesses a seat at the table when state government considers and establishes administrative rules and regulations. We strongly supported this bill and fought hard to get it passed because the rules and regulations implemented by the various state government agencies can have an impact on business, frequently costing small business owners significant amounts of time and money to comply. This session we also amended the law to require the state to create a committee of small business owners to review proposed rules and regulations.
Passed the Taxpayer’s Bill of Rights
The taxpayer's bill of rights reformed the tax appeal process so that evidence presented by business owners carried the same weight as that presented by the state. The previous dynamic created a situation in which taxpayers came to the appeal having to prove themselves innocent, rather than the state having to prove its case against them. The bill changed the burden of proof in tax cases from beyond a reasonable doubt to clear and convincing evidence. The bill also removed the presumption by the courts that the previous determination by DFA is correct.
Passed a tax exemption for machine equipment repairs and tools and dies.
This bill clarified that the purchase of tools, dies and other machine parts are tax exempt.
Passed legislation allowing businesses to write off $100,000 in depreciable expenses
This bill increases the amount allowed by the internal revenue code for the expensing of certain depreciable assets. The bill doubled the amount that small businesses could expense as depreciable assets, allowing small businesses to write off $100,000 in depreciable expenses for state income tax purposes and cut their tax bill.
Defeated proposals that would have meant higher workers’ compensation premiums
With the help of our members and supporters, a number of proposals aimed at increasing workers’ comp benefits were prevented from moving forward. Each bill would have resulted in significantly higher premiums for many small businesses.
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.
Past NFIB/North Dakota 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 our 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 we are 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, 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 our 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.
CHALLENGE: We must keep pressure on the U.S. Army Corps of Engineers to update their master manual so as to take the $84 million upstream recreational/business interests into consideration by stabilizing lake levels. North Dakota small businesses count on stable water levels to survive and succeed.
VICTORY: Our members voted overwhelmingly to encourage the U.S. Corps of Engineers to stabilize the water levels of upstream lakes on the Missouri River. We will work closely with state officials to effect this change in order to facilitate business development.
VICTORY: Due primarily to our strong opposition effort, the youth investment initiative measure was soundly defeated in the fall 2002 election. 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.
2009 NFIB/South Dakota Legislative Victories:
Won greater transparency in government purchases for services
House Bill 1260 establishes a procurement process for state government, when it is looking to purchase services. This legislation requires all bids and proposals to be posted to a state website. NFIB worked for passage of this greater transparency for small businesses
Defeat a 3- to 6-cent increase in state gas tax
Legislators had considered proposals raising the state’s gas tax by 3 cents over a year or 6 cents over two years, until NFIB and others successfully persuaded them to use federal stimulus money for shovel-ready projects instead.
Pushed for funding switch from tourism department’s general fund to levy on tourists Funding for the state’s tourism department will switch from the department’s own general fund to a levy on visitors of an extra half penny. The increase, supported by NFIB, will generate $2.6 million and will replace the $2 million the department previously used form its general fund.
Past NFIB/South Dakota victories:
Secured unemployment fund solutions
NFIB helped pass solutions to the troubled unemployment fund, including an increase in the wage base upon which contributions are determined and an increase in the maximum wage. Without these changes automatic surcharges of approximately $49 per employee would likely have been triggered against all employers in the state. These modifications are expected to preserve the fund's integrity and avoid a costly surcharge.
Defeated health insurance mandates
Two proposed health insurance mandates were introduced but they could not overcome resistance from NFIB and other interested parties and were defeated. Their defeat helps keep insurance premiums lower for small businesses.
Helped pass statutory regulatory reform, saving employer compliance costs
NFIB helped pass new legislation that requires state agencies to continue consideration of the impact their proposed rules would have on small businesses. This required analysis should save small businesses substantial compliance costs.
Health insurance discounts authorized
Rising health insurance rates continue to plague small business and remains NFIB members' top concern. With NFIB/South Dakota's support, businesses will now be given an opportunity to receive a discount on their premiums. Starting July 1, 2005, insurers may provide premium discounts of up to 20 percent to small employers who achieved 100 percent participation in their health insurance plan during the prior year. This incentive to employers is not mandated, but competitive insurers are now authorized to provide this benefit.
Higher billing interest rates allowed
Small businesses who place a notification on their billing or have a written agreement with a customer regarding billing are now able to charge 18 percent interest on past due accounts. Prior to passage of this year's bill, which NFIB/South Dakota supported, businesses were only legally allowed to charge 15 percent on overdue accounts, unless they had a written contract in place which provided for a higher rate.
Strengthened regulatory reform
Legislation passed this year ensures that small-business impact statements, which an agency must prepare when it proposes a rule, are seen at an early time by the legislature. The statement must now be reviewed by the legislative Interim Rules Review Committee well in advance of a hearing seeking the committee's approval. This should ensure that small-business issues are thoroughly considered before any new rule is enacted.
Defeated health-care mandates
Rising health-care costs continue to plague small businesses in the state. NFIB defeated several mandates — one that would have required coverage for hyperbaric oxygen therapy — and two other bills that would have expanded the number of health-care providers that would have to be reimbursed under certain health insurance policies. Small-business owners were concerned that those bills would limit the ability of insurers to control costs. NFIB members won with passage of SB 34, a bill that would offer some small groups greater flexibility. SB 34 requires health insurance carriers to offer additional deductible options under some small group plans.
Promoted economic development
Small business will be getting more help from the state soon. The Board of Economic Development will now waive certain matching requirements for funds from the Revolving Economic Development Initiative Fund. This significant tool that helps "home grown" businesses get on their feet takes effect July 1. The legislature also established an entrepreneur support program within the REDI Fund. This program is specifically directed at start-up businesses in the areas of technology, communications, service or manufacturing. The Board of Economic Development can designate up to $3 million for such programs and the loans contain certain restrictions, including a minimum size of $30,000 and a maximum amount of $50,000.
Protected small-business privacy rights
Repeal of the "gag law," which prohibited government officials from releasing information related to investigations of private businesses, was on the agenda this year. NFIB members believed that certain protections should be in place for confidential information about a private business thus, SB 59 was introduced. The attorney general established a task force to review those issues and make recommendations on proposed legislation. SB 59, while not repealing the gag law, did modify it. NFIB worked with the attorney general's office to remove the more objectionable parts of the existing statute, while at the same time preserving an entity's right to privacy.
VICTORY: 2002 -- NFIB/South Dakota successfully resisted efforts to impose a state income tax on any small business that might be incorporated, as well as earnings from that business. Defeat of those bills saved small businesses who are incorporated substantial sums.
VICTORY: 2002 -- More local governments are opting out of the tax freeze and enacting property tax rates higher than the limit established by the state. NFIB believes that any property taxes levied above the freeze level should be borne equally by commercial property taxpayers and other taxpayers.
VICTORY: 2001 -- Through the efforts of NFIB/South Dakota, lawmakers passed a bill that allows taxpayers to appeal tax adjustments mandated by the Department of Revenue. Without this legislation, no individual appeals were allowed of the department's requirements that counties adjust land values.
1998:
Liability Insurance: NFIB's efforts helped safeguard contributory negligence standards in damage recovery, which had been targeted for repeal.
Property Tax: Lawmakers passed legislation which reduces property taxes on residential and agricultural property by 5 percent.
Bad Checks: The Legislature passed a bill which makes it easier to collect on bad checks by placing the burden of proof on the account holder.
Limited Liability Companies: New Legislation permits single individuals to set up LLC status as a means of creating greater LLC opportunities in South Dakota.
Back Taxes: Legislation passed requiring the county to serve notice on the sale of property for back taxes before it is sold.
1997:
State Income Tax: NFIB was actively involved in opposition to a state income tax.
Government Taxing Authority: NFIB supported successful efforts to limit increases in the taxing authority of local governments.
Minimum Wage: NFIB worked to help defeat efforts to increase the minimum wage beyond the federal level and to increase unemployment insurance benefits.
Civil Justice Reform: A number of bills passed which help relieve small business of burdens related to the legal system.
1996:
Employee References: NFIB led successful efforts to obtain more information about prospective employees.
Tax Limitation: a ballot measure to limit the legislature's passage of taxes will be considered this fall, thanks in part to NFIB's support.
Labor: NFIB worked to again thwart unnecessary intrusions into the employer-employee relationship.
Sales Tax: NFIB supports legislative efforts to exempt late charges on overdue accounts from sales tax.
Workers' Compensation: At the request of Governor William Janklow, several changes were made to further hold down premiums.
