05/09/2008
The Revenue Estimating Conference is underway. When its work is done, the conference will issue a report on the fiscal health of our state for the next couple of years. It is expected the Legislature will have another $250 million to spend, but Gov. Bobby Jindal does not want lawmakers to spend the money. It will be interesting to see who wins the battle over the bucks and whether the spending cap is busted or not. More details will be coming next week.
Tort reform bill makes it first step
Senate Bill 308 by Sen. Jack Donahue (Mandeville) would establish a uniform system for eliminating "junk science" and non-expert witnesses from the court room. It requires a judge to give a written reason for qualifying or not qualifying a witness. NFIB/Louisiana supports the bill, which has been reported out of committee and is moving to the Senate floor for debate.
Good tax bills moving
Louisiana's system of taxing business and individuals are antiquated and confusing, meaning business owners often aren't sure 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 lawmakers and let them know that you support these measures aimed at creating a more level playing field for all taxpayers.
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. The bill also would prohibit the employment of private counsel by the tax commission on a contingency fee basis. SB 288 passed the Senate floor by a vote of 31 to 0 and heads to the House now.
SB 290, also 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 percent penalty for attorney's fees if they lose, but taxpayers aren't awarded attorney's fees if they win. SB 290 would repeal this bad tax policy and is set for hearing in the Senate Revenue and Fiscal Affairs Committee for May 12.
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 an interpretation of local sales tax law. SB 329 was reported favorably by the Senate Revenue and Fiscal Affairs Committee and heads to the Senate floor for debate.
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 passed the House floor by a vote of 88 to 8 and heads to the Senate Revenue and Fiscal Affairs Committee for hearing.
Insurance mandates of the week
SB 535 by Sen. Bill Cassidy (Baton Rouge) would require insurance coverage of alcoholism and drug abuse treatment only if a tax credit for business is enacted to equal the increase in insurance premium, up to 1.5 percent. If the increase in insurance premium is greater than 1.5 percent, the business could opt out of providing the coverage. NFIB/Louisiana State Director Renee Baker testified in Senate Insurance Committee this week that its members are not as strongly opposed to this mandate as the others that provide no relief for small business. The bill was reported favorably by the committee and heads to the Senate floor for debate.
SB 354 by Sen. Nick Gautreaux (Abbeville) would require insurance coverage for fertility treatments. NFIB opposed the bill in the Senate Health and Welfare Committee until it was amended so it will not be harmful to small business. The bill was reported favorably by the committee and heads to the Senate floor for debate.
Next week
Another important tort reform measure
SB 307 by Sen. Jack Donahue (Mandeville) would overturn a Louisiana Supreme Court decision and bar awards for "loss of enjoyment of life" as a separate element of awarding damages. The separate award amounts to double recovery. NFIB will support this bill that is scheduled to be heard in Senate Judiciary A Committee on Tuesday, May 13th
Eliminating state income tax still moving
SB 87 by Sen. Buddy Shaw (Shreveport) would essentially phase out all state individual income taxes over a period of several years. The bill was scheduled to be heard but the House Committee decided to wait to hear the bill after the Revenue Estimating Conference. It is now scheduled for Monday in the House Ways & Means Committee. Lawmakers feel as if the entire bill may not pass but would also like to get a little further than repealing the Stelly plan brackets.
Workers' comp reform bill scheduled
Many bills are scheduled to be heard in the House Labor committee next week, with some helping to ease the burden of rising workers' compensation insurance premiums while others are aimed at penalizing business. NFIB will be taking positions on these bills in committee.
SB 581 by Sen. Mike Walsworth (West Monroe) will be heard in the Senate Labor Committee on May 15. You will receive an alert early next week asking you to contact your legislator to support this piece of legislation. Committee members are hearing from the opposition and need to hear from the business community.
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
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.
McCain confirmed to speak
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 have been invited to speak. 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
