Issues in the News

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NFIB/Georgia News From the Gold Dome -- March 3, 2008
03/03/2008

Legislative days remaining: 14
Legislative schedule: The General Assembly will reconvene on Tuesday, March 4.

Action Alert: Mandated leave bill to be considered on Tuesday
Please call members of the Employment Security and Unemployment Insurance Subcommittee of Industrial Relations and urge them to vote NO on House Bill 901! Subcommittee members are:

Tom Knox (Cumming) 404-656-6831
Martin Scott (Rossville) 404-656-0254
Clay Cox (Lilburn) 404-656-0188
Mark Hamilton (Cumming) 404-656-0188
Terry England (Auburn) 404-656-0177
Billy Horne (Newnan) 404-656-0287
Ed Lindsey (Atlanta) 404-656.0298
Pedro Marin (Duluth) 404-656-0314
Rob Teilhet (Smyrna) 404-656-0298
Margaret Kaiser (Atlanta) 404-656-0265
Hugh Floyd (Norcross) 404-656-0314

HB 901, sponsored by Rep. Roger Bruce (Atlanta), mandates that employers grant their employees a total of 24 hours of leave, paid or unpaid, during a 12 month period for the following reasons:

    • To attend a medical appointment for the employee or the employee's spouse or child. 
    • To accompany an elderly relative to a medical appointment. 
    • To attend a school conference for a child of the employee when the appointment or school conference cannot reasonably be scheduled during the employee's non-work hours.


One of the most alarming provisions in HB 901 is that it jeopardizes Georgia's employment-at-will doctrine. The legislation would prohibit the employer from disciplining, discharging or penalizing the employee for taking leave. NFIB has long opposed employer mandates such as these, because of the undue strain it places on businesses. 

The government should not mandate the benefit package you offer your employees. You and your employees know best how to shape the benefit package that best fits your workplace. 

Inventory tax repeal legislation passes House subcommittee
Two resolutions aimed at eliminating the inventory tax on retail businesses and retail furniture businesses, introduced by Rep. Ron Stephens (Savannah), passed the House Ad valorem Tax Subcommittee of Ways and Means last week. House Resolution 1037 grants local governments, subject to a public referendum, the ability to repeal the inventory taxes levied on retail businesses. HR 1038 allows for a repeal of inventory taxes levied specifically on retail furniture businesses. Because these resolutions propose to amend Georgia's Constitution, to be enacted they will require a two-thirds vote supermajority in the House. The resolutions now head to the Ways and Means Committee for consideration.

NFIB will continue to advocate repealing the inventory tax on all businesses; however, we feel this is a small step in the right direction to wiping this onerous tax burden off the books in Georgia. 

Market-driven health insurance reform bill passes senate
On Tuesday, the Senate passed Senate Bill 383, sponsored by Sen. Judson Hill (Marietta), which expands the availability and affordability of high-deductible health plans and health savings accounts in the state. Provisions of the "Insuring Georgia's Families Act" include:

    • Provides rebates to consumers who have HDHPs with HSAs when they make behavior modifications, such as smoking cessation, weight loss or controlling diabetes and blood pressure.
    • Allows companies to provide health reimbursements arrangements, arrangements that allow employers to reimburse an employee for certain medical expenses, using pre-tax dollars.


NFIB supports the legislation.

Senate gives approval to IRS bill incorporating benefits for small business
Last week, the Senate approved a House measure to bring Georgia tax law into compliance with recent Federal updates. HB 926, sponsored by Rep. Larry O'Neal (Warner Robins), incorporates the extension and expansion of the Section 179 business expensing provision into Georgia law.

NFIB supports the bill. Section 179 of the federal tax code states that a business owner can write off most business equipment and furniture in the year they put the equipment into service, rather than depreciating it over a longer period. The Senate version of the legislation also incorporates changes in the recently adopted economic stimulus package. These changes include a 50-percent depreciation allowance for 2008 purchases as well as an increase in the small-business expensing limitation from $128,000 to $250,000.

Small business contracting bill passes committee
Last week, the Senate Economic Development and Tourism Committee passed SB 484, by Sen. Chip Pearson (Dawsonville), which calls for state and local governmental entities to allot 10 percent of their funding to contract with small businesses, which are defined in the bill as those with 50 or fewer employees. NFIB supports this measure as a way to give small businesses a competitive advantage when bidding for government contracting. The bill now awaits action by the full Senate.

Measure eliminating sales tax on energy used in manufacturing passes House committee
On Thursday, HB 272 by Rep. Jeff Lewis, passed the House Ways and Means Committee. The bill is aimed at eliminating the state sales tax on energy used in manufacturing. Specifically, the legislation would apply to natural or artificial gas, No. 2 fuel oil, No. 6 fuel oil, propane, and coal used directly or indirectly in the manufacture or processing, in a manufacturing plant located in Georgia. 

NFIB favors this sales tax exemption and will continue to advocate for its passage.

Useful links
Arrow BlackGeorgia General Assembly
Arrow BlackGeorgia Public Policy Foundation's Friday Facts
Arrow BlackGeorgia's Regulatory Reform
Arrow BlackGeorgia's Entrepreneur and Small Business Division of the Department of Economic Development
Arrow BlackSmall Business Administration-Georgia

Sincerely,
David Raynor
NFIB/Georgia State Director
david.raynor@NFIB.org

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