Issues in the News

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NFIB/Tennessee Small Business Update -- April 18, 2008
04/18/2008

Murfreesboro members pack room at healthcare forum
NFIB partnered last week with the Rutherford County Chamber of Commerce to host an informative exchange about healthcare reform. Panelists included Sen. Jim Tracy (Shelbyville), Reps. Curt Cobb (Shelbyville), John Hood (Murfreesboro) and Donna Rowland (Murfreesboro), Neal Heatherly with StoneCrest Medical Center, Judy Homan with AARP and NFIB State Director Jim Brown. More than 70 NFIB and chamber members attended the spirited forum. While there were diverse viewpoints, attendees praised NFIB's efforts to pass meaningful healthcare reform bills at the state level (see below) and with SHOP, the recently introduced bipartisan effort at the federal level. Read stories that resulted from the event in The Tennessean and Daily News Journal.

Revenue commissioner updates Memphis members
Revenue Commissioner Reagan Farr joined NFIB in Memphis Wednesday to float his department's initiative to tie in vendors' compensation restoration to filing business tax returns online. Feedback from Memphis members was similar to input from members in Morristown a few weeks ago. Small business seems to be fine with this approach. NFIB expects to survey all Tennessee members on this issue via our State Ballot later this year. NFIB members believe they should be modestly compensated for the time and effort it takes to collect and remit sales tax to the state. The legislature pulled vendors' comp during the 2000 budget crisis but kept it in place for out-of-state vendors.  

Commissioner Farr provided an update on the Streamlined Sales Tax Agreement, noting the July 1, 2009, implementation date likely will be delayed. He also answered questions about an income tax and other issues from some of the more than 30 members who attended. Read coverage from the Memphis Commercial Appeal. The Commercial Appeal also traveled to Nashville to cover the recent NFIB's Small Business Day at the Capitol. Read the story here, which includes comments from NFIB/Tennessee Leadership Council members Mark White and Kenny Crenshaw.

Legislation update
NFIB and other groups are awaiting details of a bill filed by the administration that likely will attempt to identify new sources or increase existing sources of revenue. Given the shortfall in this year's budget, NFIB is expecting more ambitious proposals than usual through so-called "technical corrections" to a bill that's already been filed. Stay tuned for an update and a possible call to action. Here's a report on this week's activity in the legislature and issues where your voice is needed.

Small group health cooperatives: House Bill 4066, sponsored by Reps. Charles Curtiss (Sparta) and Charles Sargent (Franklin), was delayed one week for an amendment that will remove a small fiscal note tied to a department reporting requirement. NFIB expects this important bill to advance next week, but it is vital that you continue to urge members of the House Finance, Ways and Means Budget Subcommittee to vote YES on HB 4066. 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 unanimously passed its version earlier this session.

Healthcare tax credits: NFIB continues to negotiate an approach to advance Senate Bill 2659, sponsored by Sens. Diane Black (Gallatin) and Roy Herron (Dresden), and HB 3100 (Curtiss/Sargent). NFIB is working with our sponsors and the administration to provide even more data that pins down the actual cost and savings through this important effort. The legislation would establish tax credits for small employers with 1-10 employees that provide at least 50 percent of health benefits to employees. The bill 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. NFIB expects to survey our members again on this issue to help lawmakers and officials understand its potential impact.

Mandatory leave fails: SB 3773 by Sen. Joe Haynes (Goodlettsville), which would have mandated paid sick and vacation leave, died this week, failing to advance through the Senate Commerce, Labor & Agriculture Committee. The legislation would have required certain employers to grant their employees paid sick and vacation leave based upon the number of hours they work annually. NFIB argued that many employers have adopted paid time off policies that provide generous flex time for sick or vacation leave or for personal time. We also noted how government-mandated, one-size-fits-all approaches can be harmful to many small employers and job creation. NFIB thanks Sens. Mae Beavers (Mt. Juliet), Tim Burchett (Knoxville) and Jack Johnson (Franklin) for their votes against this bill; please thank them when you see them in their districts. After the vote, Rep. Mike Turner (Old Hickory) took his bill, HB 3006, off notice in the House Consumer and Employee Affairs Committee. Many thank to all NFIB members who contacted committee members in advance of these votes. Your input is always critical! Read the recap in The City Paper.
 
Workers' comp: NFIB is planning to "key vote" HB 3710, sponsored by Rep. Craig Fitzhugh (Ripley), and SB 3271 by Sen. Randy McNally (Oak Ridge). NFIB strongly supports these bills that 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. Please ask your senator before Monday afternoon to vote YES on SB 3271. NFIB members also can find their senator and other elected officials at NFIB's home page under the Action Center (type in your zip code under "Contact your lawmaker").

Union bills: Several union bills continued to sit in committee this week but are expected to be heard Wednesday. 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 Consumer and Employee Affairs Committee to vote NO on HB 3263.
 
NFIB watch list and bills of interest: Here's an update on other bills of interest to NFIB members:

    • Buried deep on the calendar of the House Budget Subcommittee is HJR 553 by Rep. Mike Turner. The resolution would propose a constitutional amendment to establish a minimum wage in Tennessee at a rate not less than the federal minimum wage and also provide an automatic increase when Congress does not increase it for five full calendar years. Been there, done that -- Congress recently addressed this issue by increasing the minimum wage. Also, NFIB members oppose government intervention in the free market, and setting wage floors fits in that category. Please ask members of the House Budget Subcommittee to vote NO on HJR 553.
    • HB 3111 (Hood et al) was placed behind the budget, meaning it will be considered under priorities of the budget at a later date. SB 3647 (Ketron) awaits action in the Senate Finance, Ways and Means Committee. 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.


Chattanooga member recognized again

The Better Business Bureau serving Southeast Tennessee and Northwest Georgia has recognized NFIB member Mike Collins & Associates with its Torch Award winner (honorable mention) for marketplace ethics. MCA was recognized earlier this year by the Chattanooga Area and U.S. Chambers of Commerce in the 21-50 employee category. The company has 42 employees in Chattanooga and Nashville. Great work again, MCA!

Enter the Small Business Works for America Video Contest
As part of our 2008 National Small Business Summit, NFIB is launching a YouTube Contest asking for video answers to the question: "Why does small business work for America?"

Submit your 30-second video between now and May 15 and you might win a $5,000 cash prize and an all-expenses trip for two to Washington, D.C., to attend and be featured at our 2008 National Small Business Summit. The more creative the better. View complete eligibility requirements on the 2008 National Small Business Summit site under the News tab.

Small business news you can use
Arrow BlackNew OSHA rule to take effect May 15
Arrow BlackSmall businesses should consider price hikes
Arrow BlackTennessee jobless rate increases in March
Arrow BlackCalifornia to review cancelled health insurance policies
Arrow BlackDCS may see layoffs
Arrow BlackGovernor has signed 126 bills into law

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

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