05/02/2008
This week
Contingency fees bill
House Bill 747 by Rep. Joel Robideaux (Lafayette) would prohibit any taxing authority from entering into a contingency fee contract with a private auditing firm. Obviously, NFIB supports this bill because small business does not need additional fees added to their tax bill. HB 747 was reported favorably by committee and heads to the House floor.
Class action lawsuits bill withdrawn
HB 568 by Rep. Juan LaFonta (New Orleans) has been withdrawn. It would have opened the door to more class-action lawsuits.
Insurance issues
HB 859 by Rep. Jeff Arnold (New Orleans) would let hospitals that are part of a hospital service district jointly negotiate with health insurers. NFIB opposed this bill, but it was reported favorably by a 6-8 committee vote and is headed to the House floor. If it becomes laws, HB 859 would create an anti-competitive environment that would raise medical costs paid by health plans, employers and consumers. We will continue working to educate lawmakers regarding the impact this legislation will have on small business.
HB 958 by Rep. Franklin Foil (Baton Rouge) would require health insurance coverage of the diagnosis and treatment of autism spectrum disorders in individuals under 21. NFIB/Louisiana State Director Renee Baker testified in the opposition to the bill, but HB 959 was reported favorably by the committee without objection and sent to the House floor.
Undocumented worker bills
Several bills concerning undocumented workers moved out of committee this week. NFIB was monitoring the litany of bills that were filed to ensure that they did not single out small businesses and excessively fine them. The three bills reported favorably by committee related to harboring and transporting illegal aliens and providing false documentation. These bills do not single out employers but are directed to those individuals breaking the law. All three bills will move to the House floor for debate.
Taxes
As written, Senate Bill 87 by Sen. Buddy Shaw (Shreveport) would have lowered state income taxes for people making $25,000 to $100,000 a year. When it was heard on the Senate floor this week, however, it was amended to essentially phase out all state individual income taxes over a period of several years. This amendment may doom the bill because the House will not support the elimination of state income taxes. Gov. Bobby Jindal has said the administration will support tax breaks if the Legislature cuts spending.
NFIB/Louisiana sent notes to senators letting telling them our members support the bill in its original form. Sen. Shaw touted NFIB's support when speaking at the podium about the tax relief. Roughly 81 percent of NFIB members opposed the higher tax rates, which were part of the so-called Stelly Plan in 2002. The plan put a huge tax burden on the backs of small business owners, especially those struggling to keep their businesses alive.
Contact your legislator in the House of Representatives and let them know that you support SB 87 in its original form.
Next week
Budget forecast hearing on May 9
Revenue Estimating Conference will meet on May 9 to review the forecasts for fiscal year 2008 and fiscal year '09. We'll keep you posted on the state's fiscal health.
Uniform tax assessment and collection
Several good tax-related bills will be heard in committee next week.
Senate Bill 288 by Sen. Bob Kostelka (Monroe) would delete the 10 percent of tax, penalty and interested that is now transferred to the tax commission as a result of audits for deposit in its expense fund and prohibits the employment of private counsel by the tax commission on a contingency fee basis. SB 290 by Sen. Kostelka would provide that the compensation of such private counsel shall be only on an hourly basis rather than a contingency basis. Taxpayers are assessed a 10 penalty for attorney's fees if they lose, but taxpayers aren't awarded attorney's fees if they win. SB 290 will repeal this bad tax policy.
SB 329 by Sen. Robert Adley (Benton) would authorize any taxpayer who believes a local collector is or will attempt to collect a local sales tax that violates the requirement of uniformity of interpretation of the Uniform Local Sales Tax Code to ask the Louisiana Association of Tax Administrators board for a uniform interpretation of local sales tax law.
HB 747 by Rep. Joel Robideaux (Lafayette) would prohibit any taxing authority from entering into a contingency fee contract with a private auditing firm. The bill was reported favorably by the committee and heads to the House floor.
Louisiana's tax are antiquated and confusing, meaning business owners often aren't sure about who or how much to pay .There is an effort this session to make local sales tax more uniform in assessment and collection. NFIB supports these bills aimed at making filing taxes for small business less worrisome and complicated. Contact your lawmaker and let them know that your support these measures aimed at creating a more level playing field for all taxpayers.
HB 612 by Rep. Hunter Greene (Baton Rouge) would remove the occupational license tax imposed on printers, lithographers, lawyers, accountants, oculists, physicians, osteopaths, dentists, chiropodists, bacteriologists, veterinarians, chemists, architects and engineers. The bill is scheduled to be heard in the House Ways & Means Committee on Monday. NFIB supports legislation that removes unnecessary taxes on small business, which only impede their ability to grow and expand.
Insurance Issues
HB 562 by Rep. Karen Peterson (New Orleans) would require health insurance coverage of contraceptives and contraceptive services. NFIB opposes this mandate, which would make health insurance more expensive for small businesses.
HB 1327 by Rep. Erich Ponti (Baton Rouge), called the Pharmacy Patient Protection Act, would have the Department of Health and Hospitals establish standards and licensing for pharmacy benefit managers, which would include a $1,000 filing fee. Pharmacy benefit managers, or PBMs, are companies hired by health plans or employers to help control prescription drug costs. As always in the healthcare arena, additional regulations ultimately mean higher premiums as the added costs are passed down to the customer – in this case, small business owners who provide health benefits to their employees. NFIB will oppose this bill unless it is amended so that it does not hurt small business.
Workers' compensation bills
Workers' compensation insurance bills are scheduled to be heard in both Labor committees this week. There are a few good bills that would help business decrease costs and many bad bills that would likely continue to increase your premiums due to expanding time for claims and exposing employers to more liability.
The most important piece of legislation that we are supporting is SB 581 by Rep. Mike Walsworth (West Monroe). It will be heard in the Senate Labor Committee on Thursday May 8.
SB 581 would:
- Improve care for injured workers and streamline costs for employers
- Create a level playing field by making clear that the law should be applied equally and fairly
- Tighten the workers' compensation judicial system by forcing judges to base decisions on objective findings
- Streamline the way wages are calculated
- Implement treatment guidelines to cut down on doctor shopping
We are asking small business owners to attend the committee hearing, if possible. The committee members are Sens. Marionneaux, Martiny, Murray, Riser Scalise Thompson and Walsworth. If your senator is on the committee, tell them to help small business by supporting SB 581.
Small business to converge on the Capitol May 14: Impressive slate of speakers
NFIB/Louisiana expects small business owners from around the state to attend this year's event. Take the opportunity to become more informed about small business issues as you will hear from Labor Secretary Tim Barfield, Insurance Commissioner Jim Donelon, Economic Development Commissioner Stephen Moret, Treasurer John Kennedy and House Speaker Jim Tucker. Big labor and big business have droves of people representing them everyday at the Capitol. Make the small business presence known and register now by contacting Administrative Assistant Ashlynne Simien at 225-298-1225.
Make plans to attend the 2008 Small-Business Summit in Washington, D.C.
Sen. John McCain, the presumptive Republican presidential nominee, will be a keynote speaker at this year's Summit, June 8-11 in Washington, D.C. Sens. Hillary Clinton and Barack Obama also are invited to speak at this year's event. We need to have Louisiana well-represented at this year's event. Register online at www.NFIB.com/Summit.
Useful links 
Louisiana State LegislatureLouisiana Department of Economic Development -- Small Business ResourcesLouisiana Small Business Development Centers Louisiana Small Business Employee TrainingSmall Business Administration -- Louisiana
