03/06/2008
With the state legislatures in full swing, small business owners across the country are more tuned in than ever to issues affecting their companies' livelihood. As lawmakers discuss hot-button topics like healthcare, taxes and immigration, NFIB looks at what small business owners are focusing on in the states.
Healthcare
Always at the top of small business' list, several states are focusing on the cost and availability of healthcare.
Ohio
A number of proposals are being discussed to address the healthcare system in Ohio, including those dealing with reform, mandates, incentives and tax credits. NFIB/Ohio is currently working with the insurance community to create health-insurance plans for small businesses that would allow employers to offer mandate-free coverage to employees. Working against small business, several pieces of legislation have been introduced to impose new health-insurance mandates, and are waiting to be heard in the House of Representatives.
Maryland
SB 65, which would mandate the Maryland Health Care Commission include child-dependent coverage, was heard Jan. 23 in the Senate Finance Committee. No vote has occurred, and NFIB is encouraging all NFIB/ Maryland members to contact their senators urging them to vote "no" on this proposal.
California
Since 2005, NFIB has killed numerous mandated healthcare reform bills introduced in the state of California that would have devastated the small business community with new payroll taxes. Late last year, a new proposal was introduced that would have forced employers with up to $250,000 in payroll to cover their employees' healthcare or pay 1 percent of the payroll into a state-run healthcare pool. Fortunately for small business, the Senate Health Committee rejected the bill, and it died in committee earlier this year. Though small business has been able to dodge this bullet, NFIB remains ready to fight any upcoming proposals that include increased taxes and employer mandates.
Workers' compensation and labor laws
NFIB continues to work against one-size-fits-all mandates on small businesses, including workers' compensation and paid sick leave proposals.
Ohio
Though Ohio law currently requires employers provide a "reasonable time period" for maternity leave, the Ohio Civil Rights Commission has filed an Administrative Rule requiring employers to provide 12 weeks of maternity leave no matter how small the business. The OCRC has been ordered to analyze the economic impact of the proposal before it can receive further attention, and NFIB will continue to monitor its development and work to oppose the rule's implementation.
Also in Ohio, a plan that would require all employers with 25 or more workers to provide seven days of paid sick leave per employee is making its way before the Ohio General Assembly, which will have 120 days to act on the proposal. NFIB is monitoring the measure's progress in the Assembly, and will continue to fight against its implementation.
Kentucky
Kentucky small businesses are currently paying high workers' compensation premiums, resulting in the stifling of expansion and investment and creating a disincentive for businesses to remain in or relocate to the state. Legislation to address the situation is expected to be filed in the 2008 General Assembly, and NFIB is ready to support commonsense solutions.
Indiana
HB 1488, which proposed increases in workers' compensation benefits, passed the Indiana House by a vote of 83-12 last year, but stalled in the Senate. An attempt to amend the benefit increases into another piece of legislation, SB 537, passed the House 51-48, but the Senate did not accept the changes. In a 2007 NFIB member ballot, 84 percent of members indicated they did not support an increase in workers' compensation benefits.
Minimum wage
NFIB opposes any increase in minimum wage, as mandatory increases hurt both the small business owner and employee. Last year President Bush signed a bill into law that is incrementally increasing the federal minimum wage from $5.15 to $7.25 by 2009.
Missouri
In 2006 Missouri passed Proposition B, which will require employers to pay an additional amount above the federal income tax based on the consumer price index. SB 1007, which has passed the Senate Small Business Committee and is on its way to the Senate floor for debate, would prevent indexing to exceed the federal rate beginning Jan. 1, 2010. NFIB encourages members to contact their senator in support of this bill, as a high minimum wage will put Missouri at an economic disadvantage to neighboring states.
Alaska
Introduced Jan. 16, 2008, SB 187 proposes increasing the Alaska minimum wage to $8 per hour, followed by raising it to the greater of $1 more than the federal minimum wage or $8 adjusted annually by 100 percent of the increase in the Anchorage consumer price index. NFIB opposed this bill in committee, and will continue to fight its passage through the state legislature.
Sales tax
Kansas
A bill introduced in the House of Representatives aims to allow businesses to retain 3 percent of the total sales tax revenue they collect for the first $10,000 in revenue collected and 1.5 percent of the sales tax collected for revenue between $10,000 and $50,000. NFIB supports this administrative allowance concept, and urges NFIB/Kansas members to contact their lawmakers to show their support as well.
Nebraska
Talk has turned to the possibility of legislation being introduced this year to expand the services subject to sales tax, legislation that NFIB will oppose. Contact your lawmakers and let them know you do not support an expansion of the sales tax on services, as it only hurts small business.
Legal reform
Maryland
NFIB continues to oppose legislation that makes it easier to sue small business owners and win damages against them. A hearing was conducted Jan. 15 regarding HB 20, which seeks to increase the amount in controversy in civil actions that can be brought as a small claim before the District Court from $5,000 to $10,000. NFIB submitted testimony in support of this legislation.
Alaska
Alaska currently requires a defendant to post an appeal bond in order to stay an adverse judgment during an appeal, and Alaska courts can require the amount of the bond to be equal to or less than the size of the judgment. Two bills have been introduced to limit the appeal bond to the lesser of $5 million or 10 percent of the appellant's net worth. NFIB encourages NFIB/Alaska members to write letters of support to the bill's sponsors, Sen. Huggins and Rep. Coghill, and to watch for further updates on the status of the bill.
NFIB continues to fight on behalf of small business in the state capitols and Congress. To find out more about what legislative issues are hot in your state, visit your state's page on NFIB.com.
