NFIB

Revenue amendment, budget shortfall focus of session
Last week's Small Business Update noted a so-called "technical corrections" amendment to a bill that's already been filed by the administration. Many provisions of the amendment to Senate Bill 4173 and House Bill 4129 indeed seek to clarify or close existing loopholes, but one purpose is to identify new sources or increase existing sources of revenue. The amendment coincides with an announcement this week by Gov. Phil Bredesen that he expects a deepening budget shortfall.

One proposal of concern in the first draft of the amendment, which was first circulated last week, would impact small business. The section would remove a franchise and excise tax exemption on family-owned limited liability corporations and limited partnerships that derive passive income through commercial property. NFIB is working with our state Tax Advisory Council and other groups to sift through the detailed amendment to determine other possible impacts on small business. Stay tuned for another update and a possible call to action.

Progress and retreat for small business in committees
This week, there was good news (healthcare) and bad news (workers' compensation and workplace wellness) at the Legislature. Here's a report on this week's activity.

Small group health cooperatives: House Bill 4066, sponsored by Reps. Charles Curtiss (Sparta) and Charles Sargent (Franklin), passed the House Budget Subcommittee Tuesday and moves to the House Finance, Ways and Means Committee. 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 contact members of the House Finance, Ways and Means Committee and ask them to vote YES on HB 4066. The Senate unanimously passed its version earlier this session.

Healthcare tax credits: Given this year's budget shortfall, Senate Bill 2659, sponsored by Sens. Diane Black (Gallatin) and Roy Herron (Dresden), and HB 3100 (Curtiss/Sargent) are expected to be studied further this summer. The legislation would establish tax credits for small employers with 1-10 employees that provide at least 50 percent of health benefits to employees. NFIB will continue to work with our sponsors and the administration to provide even more data that pins down the actual cost and savings through this important effort. 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 offer such benefits. NFIB expects to survey our members again on this issue to help lawmakers and officials understand its potential impact.

Workers' comp: Rep. Craig Fitzhugh (Ripley) pulled his bill, HB 3710, Tuesday in the House Consumer and Employee Affairs Committee and requested a summer study. The bill would have righted a surprising Tennessee Supreme Court Decision that essentially created a new workers' compensation system for injuries that occur during recreational activities. Rep. Fitzhugh's commonsense bill specifies that injuries incurred during an employee's recreational activities are not covered by workers' compensation unless the employer either: expressly required participation or made the activity part of the services of the employee; or the employer derives substantial direct benefit from the activity beyond the intangible value of improvement in employee health and morale. SB 3271 by Sen. Randy McNally (Oak Ridge) passed the Senate 33-0 Monday. NFIB thanks sponsors Fitzhugh and McNally and co-sponsors Sens. Diane Black (Gallatin), Mark Norris (Collierville) and Jim Tracy (Shelbyville) and Rep. Curt Cobb (Shelbyville) -- as well as the Tennessee Chamber of Commerce and Industry -- for their leadership on the legislation.

Unfortunately, the court's liberal interpretation and the failure of the bill to pass both chambers are dampening efforts by many employers to pursue much-needed wellness efforts. NFIB recommends all employers that have wellness equipment (fitness or sports-related) or plans to install such equipment to obtain legal advice before allowing onsite fitness activities (like weight-lifting or basketball games). Employers that host team-building, group fitness activities (like softball picnics) also should seek legal opinion. NFIB will continue to work with opposition groups to help them understand the benefits of the bill -- healthier workers, lower healthcare costs, and better worker productivity and morale -- while addressing any remaining concerns. 

Union bills: The House Consumer and Employee Affairs Committee concluded its last meeting Tuesday. Rep. Mike Turner (Old Hickory) pulled House Joint Resolution 765, which 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. Rep. Gary Moore (Joelton) sent another union-supported bill (HB 3263) to summer study. NFIB and other groups believe the bill, as drafted, would take away the right of an employer to conduct a mandatory employee meeting to discuss issues related to a union campaign. The bill first would redefine "community and labor organizations" under "political matters." It then would establish that an employer cannot "require an employee to attend an employer-sponsored meeting or participate in any mandatory communication with the employer or the employer's agents or representatives … [if the purpose of the meeting] is to communicate the employer's opinion about religious or political matters or to attempt to influence the employee's opinions or actions with respect to religious or political matters." The bill also would establish a civil cause of action for an "aggrieved employee."

Small business news you can use
State looking at restoring vendors' compensation program
Knoxville News-Sentinel column mentions NFIB healthcare effort
Governor to get bill limiting medical malpractice
Tennessee sales tax taking a three-day breather
Group issues pork report
NFIB member Kelly Dobbins featured in environmental-friendly article
Small business workshop May 6 in Cookeville

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