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NFIB/Tennessee Small Business Update -- April 11, 2008
04/11/2008

Small Business Day connects members, lawmakers
Nearly 75 small business owners and guests from across the state attended NFIB's Small Business Day at the Capitol in Nashville on Wednesday. Gov. Phil Bredesen gave the keynote address, discussing the economy, the state's eHealth initiative aimed at connecting healthcare providers throughout the state, and CoverTN, the state's year-old program to help small businesses cover the cost of providing basic health insurance to their employees. Read the entire story here with photos and a column about Small Business Day in the Knoxville News-Sentinel.

Session shows signs of ending
So far, lawmakers are making good on their word to wrap up session as soon as possible. Committee workloads are declining, although several key small business bills are still being debated. Several NFIB bills need your action.

Small group health cooperatives: House Bill 4066, sponsored by Reps. Charles Curtiss (Sparta) and Charles Sargent (Franklin), moved through the House Government Operations Committee on Wednesday. The bill, which heads to the House Finance, Ways and Means Budget Subcommittee, 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. Even though the bill has a small fiscal note, it is very important that you contact members of this subcommittee and ask them to vote YES on HB 4066. The Senate unanimously passed its version earlier this session.

Healthcare tax credits: Members of the House and Senate Finance, Ways and Means committees must hear from you now. Please ask House committee members to vote YES on HB 3100 (Curtiss/Sargent). Please ask Senate Committee members to vote YES on SB 2659, sponsored by Sens. Diane Black (Gallatin) and Roy Herron (Dresden). Let committee members know the legislation will save the state, hospitals -- and eventually taxpayers -- money by keeping more small business owners under private health insurance and providing incentives for more start-up businesses to provide coverage. The bills, supported by 92 percent of NFIB/Tennessee members, would provide a tax credit for small employers with 1-10 employees that provide at least 50 percent of health benefits to employees.

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. Most importantly, tell them your story!

Update on other key legislation
Here's a recap of other issues of interest to NFIB members.

Mandatory leave: Once again, Rep. Mike Turner (Old Hickory) and Sen. Joe Haynes (Goodlettsville) deferred action on bills that would mandate paid sick and vacation leave. 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 that provide generous flex time for sick or vacation leave or for personal time. NFIB is pointing to San Francisco and the District of Columbia as examples Tennessee does not want to follow with this expensive, unnecessary government mandate on private business practices. California, Illinois, Massachusetts and Ohio are also seriously considering this flawed approach. 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 also sat in committee this week but 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 also postponed again. Please ask members of the House Employee Affairs Subcommittee to vote NO on HB 3263.

Workers' comp: HB 3710, sponsored by Rep. Craig Fitzhugh (Ripley), passed the House Employee Affairs Subcommittee. 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 members of the House Consumer and Employee Affairs Committee to vote YES on HB 3710. The Senate Commerce Committee passed counterpart SB 3271 by Sen. Randy McNally (Oak Ridge) by a 7-1 vote. That bill heads to the Senate Calendar Committee. Other meaningful workers' comp reform bills haven't moved because many committee members have decided to wait another year before proceeding.

NFIB watch list and bills of interest: Here's an update on other bills of interest to NFIB members:

    • SB 3460 by Sen. Barbara Marrero (Memphis) failed in the Senate Commerce Committee due to a lack of a motion. The flawed bill would have authorized 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. Committee members found the bill unnecessary and/or a slippery slope to more lawsuits filed by unscrupulous lawyers.
    • The gift card redemption effort is dead. SB 3209 by Sen. Andy Berke (Chattanooga) did not pursue his bill in committee, while HB 2522 (Turner) was taken off notice in committee. The bill would have required gift certificates with a monetary value of less than $10 to be redeemable in cash for cash value. NFIB and others argued against government intervention in private business contracts, among many concerns. 
    • SB 1796 by Sen. Charlotte Burks (Monterey) passed unanimously in the Senate Commerce Committee. The amended bill would allow monthly payments for continuation health coverage, instead of a lump sum payment. NFIB worked to protect small business owners from extending the continuation time of terminated group coverage. This would have been expensive for some small businesses because it would increase the risk of a negative experience during the extended period. The House passed its version last year.
    • HB 3111 (Hood et al)/SB 3647 (Ketron) continues to advance through both chamber committees. The bill would authorize any person, instead of only a government official or agency, who has reason to believe that an employer is employing illegal aliens, to file a complaint with the department of labor and workforce development, and requires that such complaint be made under oath.


Economic signs less than promising

Recession clouds appeared in the skies over Main Street, according to the most recent NFIB Small Business Economic Trends member survey. The NFIB Index of Small Business Optimism fell 3.3 points in March to 89.6 -- its lowest reading since the monthly surveys were started in 1986 and the lowest quarterly reading since the second quarter of 1980. The decline was driven by a sour outlook for business conditions and real sales growth, accounting for half the decline in the Index. Weaker plans to create new jobs accounted for 21 percent of the decline. "We are seeing recession readings," said NFIB Chief Economist William Dunkelberg. Read details and reaction about the disappointing news in The Tennessean and USA Today. We thank NFIB member Susan Goyer with HR firm Aabakus in Brentwood for her input in The Tennessean's article.

Sign up for NFIB Summit
NFIB has joined forces with eBay to create an event you don't want to miss -- NFIB's Small Business Summit from June 8-11 in Washington, D.C. Attendees will interact with policymakers, business leaders and other leading entrepreneurs, share your experiences and find new ideas to boost your business. To get things done in Washington, small business must speak with one voice on important issues such as healthcare, tax reform, immigration reform, government regulation and lawsuit abuse. Presidential candidates and other important political leaders and decision makers have been invited. Maybe this is the excuse you needed to plan a family vacation this summer to our nation's Capitol. Learn more and register.

Free enterprise gets stronger in Tennessee
Despite some serious economic headwinds, NFIB registered a member gain the first quarter. NFIB thanks every member for your continued support and referrals and congratulates our sales team for their hard work to start the year. If you know a small business owner who would be interested in joining NFIB, contact Valerie Nagoshiner at 615-872-5331.

Small business news you can use
Arrow BlackTennessee businesses to get grant guidance
Arrow BlackLawmakers introduce federal healthcare legislation
Arrow BlackSmall businesses fight to scuttle tax proposals
Arrow BlackShortfall grows; state pay raises in jeopardy
Arrow BlackAT&T bill starts moving
Arrow Black$100,000 small business makeover launched

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

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