Issues in the News

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NFIB/Tennessee Small Business Update -- March 20, 2008
03/20/2008

Governor to deliver keynote at Small Business Day
NFIB members: Don't miss this year's Small Business Day at the Capitol, sponsored by AT&T and Waller Lansden Dortch & Davis. The event will be held from 10 a.m. to 2:30 p.m. on Wednesday, April 9. Gov. Phil Bredesen is confirmed as our keynote speaker. In addition, NFIB is planning two panel discussions with legislators and experts on the small business healthcare crisis and taxation in Tennessee. NFIB members from across the state also will have the opportunity to meet with their legislators. To make your reservation, please sign up online or contact Valerie Nagoshiner at 615-872-5331. Reserve your spot today!

Good week for small business
The pre-Easter week at the Capitol saw both action and delay. Below is an update on key issues important to the small business community. Please make your voice heard on these issues.

Small group health cooperatives: Senate Bill 4014, sponsored by Sen. Steve Southerland (Morristown), passed the Senate Commerce Labor and Agriculture Committee 9-0 and heads to the Senate calendar. The bill would let small business owners join together to negotiate for health insurance rates and give small business owners an important option to look for better rate predictability and stability. Please continue to ask members of the House Industrial Impact Subcommittee to vote YES on the House version, House Bill 4066, sponsored by Reps. Charles Curtiss (Sparta) and Charles Sargent (Franklin). NFIB expects the committee, which ran out of time this week, to hear this important bill.

Healthcare tax credits: The House Government Operations Committee unanimously approved House Bill 3100 (Curtiss/Sargent) and forwarded the bill to the Budget Subcommittee of the House Finance Ways and Means Committee. The bill, which is being amended to reduce the fiscal note, would provide a tax credit for small business employers that provide health benefits to employees, an idea supported by 92 percent of NFIB members. Please ask members of the House Budget Subcommittee to vote YES on HB 3100. The Senate Finance Ways and Means Tax Subcommittee is awaiting the amendment on the Senate version, SB 2659, sponsored by Sens. Diane Black (Gallatin) and Roy Herron (Dresden).

Mandatory leave: The Senate Commerce Committee did not debate SB 3773 after sponsor Sen. Joe Haynes (Goodlettsville) asked the committee to delay action on the measure. SB 3773 would require certain employers to grant their employees paid sick and vacation leave based upon the number of hours they work annually. Most small business owners already have generous sick and vacation leave policies, and NFIB members oppose onerous government mandates on private business practices. Please continue to ask committee members to vote NO on SB 3773. The House Consumer & Employee Affairs will hear its version of the bill, HB 3006 by Rep. Mike Turner (Old Hickory), next Tuesday, March 25. Please ask committee members to vote NO on HB 3006.

Redeeming gift cards for cash: The Senate Commerce Committee also did not debate SB 3209, sponsored by Sen. Andy Berke (Chattanooga), who asked the committee to defer action on his bill three weeks. SB 3209 would require gift cards and certificates with a monetary value of less than $10 to be redeemable for cash value. NFIB members oppose government interference with private contracts and gift certificates to be made into ATM vouchers. Please continue to ask committee members to vote NO on SB 3209.

Union bills: NFIB strongly opposes House Joint Resolution 0765, sponsored by Rep. Turner. This resolution would encourage Congress to pass the poorly named Employee Free Choice Act, which would make employee votes public. The act would open the door to intimidation and harassment of employees voting in elections of potential union formation. Please ask members of the House Employee Affairs Subcommittee to vote NO on HJR 0765. Another union-supported bill (HB 3263) by Rep. Gary Moore (Joelton) would take away the right of an employer to conduct a mandatory employee meeting to discuss issues related to a union campaign. Please ask members of the House Employee Affairs Subcommittee to vote NO on HB 3263.

Workers' compensation legislation: Several harmful workers' comp bills were taken off notice in the House Employee Affairs Subcommittee, including HB 2494, sponsored by Rep. Henry Fincher (Cookeville). That bill would have authorized a claim to be filed in court before a benefit review conference is held. If passed, the bill would have undermined a key component of the 2004 workers' compensation reform package, which helped rein in soaring workers' compensation premiums. Several House Democrats said they are staying to true to a pledge not to seek reform bills such as HB 2494, noting they had agreed in 2004 to wait five years before looking at such initiatives.

Limiting the definition of 'injury': NFIB continues to urge passage of HB 3801, sponsored by Rep. Curtiss. The bill would limit the definition of "injury" when it occurs at an employee's residence under certain circumstances. NFIB supports this commonsense approach. Recently, the State Supreme Court, after reviewing a case in Nashville, ruled the Workers' Compensation Act covers telecommuters who are injured while working from home, but only when the injury arises out of and occurs in the course of employment. Please ask committee members to vote YES on HB 3801.

Excluding injuries from leisure activities: NFIB supports HB 3710, sponsored by Rep. Craig Fitzhugh (Ripley). The bill would exclude workers' compensation injuries that occur during recreational activities that are not required by the employer and do not directly benefit the employer. Please ask committee members to vote YES on HB 3710.

Do Not Call business bill: NFIB is working hard to defeat HB 2871, sponsored by Rep. Moore. The bill would allow businesses to enroll on the Do Not Call Register. NFIB is arguing that business-to-business phone solicitations are inherently different than calls to residences. Importantly, businesses would have to spend $500 annually to access the register, which is essentially a burdensome $500 business tax. Please ask members of the House Utilities, Banking and Small Business Committee Subcommittee to vote NO on HB 2871. 

Minimum wage: The Senate Commerce Committee is scheduled to hear SB 1668 by Sen. Doug Jackson (Dickson). The bill would require the state to provide for an automatic minimum wage increase whenever Congress fails to increase it over five full calendar years. NFIB members oppose mandated wage increases for many reasons. Please ask committee members to vote NO on SB 1668.

Other bills in Senate Commerce: NFIB supports SB 3175 sponsored by Sen. Paul Stanley (Germantown). The bill would require regulating entities to notify a holder of a license, certification or registration of applicable laws and changes in applicable laws. NFIB is watching closely SB 3460 and SB 3462 by Sen. Beverly Marrero (Memphis). SB 3460 would authorize a consumer to bring civil action when a household or goods warranty is breached, while SB 3462 would require tobacco products in retail outlets to be sold under "continuous supervision" and "within three feet of a candy section, candy aisle, or candy display."  

Tax audit and identification bill dead
A bill (SB 3099/HB 3517) that would have allowed city and county governments to retain agents to conduct audits of taxpayer records and to retain agents to identify taxpayers who are not filing, paying, or filing and paying, any tax due to such city or county appears to be dead. NFIB helped amend the bill last week to remove the agent audit provision. This week, the state Department of Revenue and other business groups agreed the bill is unnecessary. Revenue pledged to work with counties to conduct any requested audits, keeping state and county roles intact and out of the hands of potential hired guns. Under existing statute, the state collects monies from such audits, while the counties benefit in the long term through the identification of delinquent or deficient taxpayers. NFIB thanks both bill sponsors, Sen. Douglas Henry (Nashville) and Rep. Steve McDaniel (Parkers Crossroads), for allowing a thorough review.

Lt. Gov. Wilder announces he won't seek reelection
Sen. John Wilder (Mason) announced this week he will not run for reelection. Lieutenant governor from 1971-2006 and elected to office first in 1959, Mr. Wilder has served his constituents and our state with distinction. An NFIB member, attorney and farmer, Mr. Wilder will leave office with a record of extraordinary civil service and unsurpassed longevity. Thank you, Lt. Gov. Wilder, for your many years of support of free enterprise in Tennessee.

NFIB sales representative breaks record in Clarksville
NFIB has a number of outstanding activist members in Clarksville, including Tennessee Leadership Council member Ron Smithfield with Smithfield Manufacturing. Several weeks ago, NFIB field sales representative Randy Karschner spent his week in Mr. Smithfield's hometown. Karschner redefined the word "organized," boosting NFIB membership by 31 small and independent business owners in one week, an NFIB national record! Thank you, Randy, for your passion, Ron, for your leadership, and our 31 new NFIB members for making free enterprise stronger! Do you know someone who should be an NFIB member? Please contact Valerie Nagoshiner at 615-872-5331. The stronger we are, the stronger you are.

Morristown meeting to explore vendors' compensation
NFIB members in the Morristown area are encouraged to attend a March 28 meeting with Revenue Commissioner Reagan Farr, Rep. John Litz (Morristown) and other invited legislators. NFIB and the Morristown Area Chamber of Commerce are hosting the event. One topic of discussion will be a proposal to have the state reinstate payment to small businesses for collecting state and local sales taxes. Under current law, Tennessee-based businesses receive no compensation for collecting sales taxes, although out-of-state businesses that voluntarily collect the sales tax receive 2 percent of the first $2,500 on each monthly sales tax report and 1.15 percent of any collections over $2,500 on each report. The 8 a.m. event will be held at the Rose Center, Jean Keener Community Room, 442 W. 2nd North St., in Morristown. Register by e-mailing Valerie Nagoshiner or calling 615-872-5331.

Small business news you can use
Arrow BlackJackson mayor speaks at NFIB grassroots meeting
Arrow BlackTennessee Web site lets patients track doctors' dealings
Arrow BlackAP article on revenue picture
Arrow BlackSmall business calls for health reform
Arrow BlackYoung workers lack savings plans

Happy Easter, everyone!

Sincerely,
Jim Brown
NFIB/Tennessee State Director
615-874-5288
jim.brown@nfib.org

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