04/04/2008
Hope for health insurance at the federal level
NFIB has worked diligently to file bipartisan legislation in the U.S. Senate that would make health insurance more affordable, predictable and accessible for small businesses with up to 100 employees. Called the Small Business Health Options Program, or SHOP, the legislation would establish:
- A national healthcare purchasing pool from which small businesses can choose and access competitive insurance policies, enabling them to spread risk over a large number of participants
- A small business-targeted tax credit
- A revised rating system to protect small businesses from large rate increases simply because one employee gets sick
NFIB recently joined sponsors of this legislation, Sens. Dick Durbin (Ill.), Olympia Snowe (Maine), Blanche Lincoln (Ark.) and Norm Coleman (Minn.) at a press conference announcing its introduction and supporting their efforts. Read NFIB's letter to the bill's sponsors and commentary on a New York Times blog. NFIB has heard our members loud and clear, both at the federal and state level. We will continue to pursue meaningful solutions in Washington, D.C., and Nashville that help you with the challenge of accessing affordable health insurance.
State-level health reform effort advances
NFIB continues to work on two initiatives in Tennessee that would address our small business healthcare crisis.
Small group health cooperatives: House Bill 4066, sponsored by Reps. Charles Curtiss (Sparta) and Charles Sargent (Franklin), passed the House Commerce Committee on Wednesday. Similar to SHOP, 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. The Senate version, Senate Bill 4014 sponsored by Sen. Steve Southerland (Morristown), passed 31-0 in the Senate last week. Please ask members of the House Government Operations Committee to vote YES on HB 4066. Read recent news coverage here and here.
Healthcare tax credits: As reported last week, the House Budget Subcommittee put House Bill 3100 (Curtiss/Sargent) behind the budget, meaning the bill will be evaluated in the context of the complete budget at a later date. The bill would provide a tax credit for small employers with 1-10 employees that provide at least 50 percent of health benefits to employees. This initiative is supported by 92 percent of NFIB/Tennessee members.
NOW is the time to act. Please ask members of the Finance Ways and Means Committee to vote YES on HB 3100, and please ask Gov. Phil Bredesen and his administration to support HB 3100/SB2659 by e-mailing phil.bredesen@state.tn.us or calling 615-532-4562.
Respectfully tell committee members and the administration these tax credits will help your small business cover more lives in Tennessee and lower the long-term costs for all of us by keeping more Tennesseans privately insured. Note that the Tennessee Hospital Association reported bad debt, charity care and non-reimbursements in 2007 of $1.5 billion, an increase of more than $120 million from the previous year. Note that only 45 percent of small business owners with three to nine employees provide health insurance (source: Kaiser Family Foundation 2007 report) and more than half of start-up businesses decline to provide health insurance (source: 2007 NFIB Research Foundation). Most importantly, tell them your story!
Update on other key legislation
Healthcare wasn't the only issue debated this week. Here's a recap of other issues of interest to NFIB members.
Tort reform: The House passed SB 2001, an oft-amended tort reform bill, by a 93-1 vote on Thursday. The bill, which NFIB supports, essentially attempts to reduce frivolous lawsuits by requiring any person who asserts claim for medical negligence to give written notice to each physician or healthcare provider at least 60 days before filing suit, among several stipulations. Though it does not provide monetary damage caps and attorney fee scheduling sought by the reform coalition, the bill is considered a step in the right direction. The Senate now must consider the amended bill. Read more here.
Mandatory leave: Rep. Mike Turner (Old Hickory) and Sen. Joe Haynes (Goodlettsville) again deferred action on bills that would mandate paid sick and vacation leave by one week. The legislation would require certain employers to grant their employees paid sick and vacation leave based upon the number of hours they work annually. NFIB continues to argue that many employers have adopted paid time off policies (PTOs) that provide generous flex time for sick or vacation leave or for personal time. NFIB is pointing to California, the first state to adopt similar legislation in 2002, as Exhibit "A" of states Tennessee does not want to follow with government mandates on private business practices. Please ask House Consumer and Employee Affairs Committee members to vote NO on HB 3006. Please ask Senate Commerce Committee members to vote NO on SB 3773.
Union bills: Several union bills that sat in committee this week are expected to be heard next week. House Joint Resolution 765, sponsored by Rep. Turner, would encourage Congress to pass the poorly named Employee Free Choice Act (known to NFIB members as "Card Check"). 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 Consumer and Employee Affairs Committee to vote NO on HJR 765. Another union-supported bill (HB 3263) by Rep. Gary Moore (Joelton) that would take away the right of an employer to conduct a mandatory employee meeting to discuss issues related to a union campaign was postponed one week. Please ask members of the House Employee Affairs Subcommittee to vote NO on HB 3263.
Workers' comp: NFIB continues to support HB 3710, sponsored by Rep. Craig Fitzhugh (Ripley). The bill, which was again postponed one week, 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 members of the House Employee Affairs Subcommittee to vote YES on HB 3710 and please ask Senate Commerce Committee members to vote YES on SB 3271 by Sen. Randy McNally (Oak Ridge).
Business Do Not Call bill dies: NFIB joined other groups to help defeat HB 2871, which would have allowed businesses to enroll on the state's Do Not Call Register. NFIB argued that business-to-business phone solicitations are inherently different than calls to residences. The bill's demise in committee ensured many businesses would not incur a new $500 fee to access the register. NFIB thanks members of the House Utilities, Banking and Small Business Subcommittee for their work on this bill.
NFIB watch list and bills of interest: NFIB continues to watch bills scheduled for committee, including:
- SB 3460/HB 3180, which would authorize a consumer to bring an action under consumer protection law for an unfair or deceptive act when a person has failed to honor the full value of a warranty on goods or a household appliance
- SB 3209/HB 2522, which would require gift certificates with a monetary value of less than $10 to be redeemable in cash for cash value
- SB 1796 /HB 1482, which would extend the period of time for continuation of terminated group coverage
- SB 3751/HB 3632, which would provide that a court can award liquidated damages of $5,000 if consumer protection violation of selling used merchandise as new results in exposure of minor to material that is obscene or harmful to minors and exposure was foreseeable
- SB 3175/HB 2949, which would require regulating entities to notify a holder of a license, certification, or registration of applicable laws and changes in applicable laws
Sign up for next week's Nashville, Murfreesboro grassroots events
Time is running short to sign up for Small Business Day at the Capitol on Wednesday, April 9. This informative, interactive day with elected officials is an outstanding way to make your voice heard on issues important to you and your business. Gov. Phil Bredesen is confirmed as our keynote speaker. NFIB members will have the opportunity to ask questions of leaders on two panels (healthcare and taxes). NFIB thanks AT&T and Waller Lansden Dortch & Davis for their tremendous support in sponsoring our annual gathering in Nashville. The event will be held from 10 a.m. to 2:30 p.m. at the Waller Lansden office on the 27th floor at 511 Union St. Make your reservations today. Sign up online or contact Valerie Nagoshiner at 615-872-5331 or Valerie.Nagoshiner@NFIB.org. NFIB also is hosting a healthcare panel with area legislators and leaders in Murfreesboro on Friday, April 11. Learn more here or call 615-872-5331.
NFIB member Edna Greene with KC Towing in Morristown discusses tax issues with David Gerregano, center, and Glen Page, right, with the Department of Revenue. Greene was one of several NFIB members who joined members of the Morristown Chamber of Commerce to provide feedback to a panel on tax and healthcare issues.
Revenue, NFIB join Rep. Litz in Morristown
Last Friday, Deputy Revenue Commissioner Glen Page and NFIB/Tennessee State Director Jim Brown joined Rep. John Litz in his hometown of Morristown. About 25 NFIB and Morristown Chamber members asked the panel questions about legislation sponsored by Rep. Litz that would restore vendors' compensation, as well as the small group cooperative bill sponsored by Rep. Litz and Sen. Southerland. Several representatives of different associations said they would be interested in looking at the cooperative pooling option.
Responding to a proposal by the Revenue Department, four NFIB members said they would consider filing their state business taxes online as a contingency for having vendors' comp restored. Edna Greene with KC Towing, an NFIB member since 2005, said she would consider making the move from filing taxes manually to online. NFIB expects to ballot this proposal at a later date. Greene said she enjoyed meeting with the panel and community activists, noting, "The meeting itself was very informative. Our membership dues are definitely worth the value we receive."
Legal Foundation changes name
NFIB's Legal Foundation has become the NFIB Small Business Legal Center. The center has quickly become known as the voice for small business in the nation's courts and the legal resource for small business owners nationwide. Founded in 2000, the NFIB Small Business Legal Center has become a critical component of NFIB's influence, participating in nearly 100 precedent-setting legal cases either as party plaintiff or by filing friend-of-the-court briefs in cases before the U.S. Supreme Court and federal and state courts. Additionally, the Small Business Legal Center has developed an impressive legal library and other legal educational programs designed to help small businesses comply with certain key federal laws, such as the Fair Labor Standards Act, Immigration Reform and Control Act of 1986, and the Occupational Safety and Health Act. To learn more about the NFIB Small Business Legal Center please visit www.NFIB.com/legal.
Tax filing deadline nears
The Tennessee Department of Revenue reminds Tennessee taxpayers that the individual income tax, commonly known as the Hall income tax, and franchise and excise taxes are due Tuesday, April 15. Filing alternatives, including payment by credit card and other electronic filing options, are available at www.Tennessee.gov/revenue. In order to assist taxpayers with compliance to electronic filing, the department provides computer access in its offices in Chattanooga, Knoxville, Jackson, Johnson City, Memphis and Nashville. The department also offers an electronic commerce hot line to assist taxpayers and tax practitioners at 866-368-6374. Nashville-area and out-of-state callers should dial 615-253-0704.
Small business news you can use
Small business advocacy group gains Clarksville membersGas prices threatening livelihood of small business ownersBredesen tells lawmakers to be flexible amid budget crunchSession ending date targeted for May 9Belmont entrepreneurship program recognizedFiscal notes can make or break legislationNFIB Presidential Elections Center available onlineTennessee's Small Business Champion plans Grand Events in Memphis
Sincerely,
Jim Brown
NFIB/Tennessee State Director
615-874-5288
Jim.Brown@NFIB.org
