Issues in the News

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NFIB/Louisiana Legislative Update -- May 16, 2008
05/16/2008

The House floor wrapped up debate on the $30 billion budget bill on Thursday. With the Revenue Estimating Conference and Fiscal Office reporting a larger 2008-09 budget surplus than expected, the only trims were for salaries of in the state's economic development office. The budget bill, House Bill 1, now moves to the Senate.

Small Business Day a success
NFIB/Louisiana held Small Business Day at the Capitol on Wednesday, May 14. It was attended by nearly 60 small business owners who visited with legislators and heard from top agency heads. House Speaker Jim Tucker and Economic Development Secretary Stephen Moret told members the state's regulatory process needs fixing. Tucker said, "We're hearing from our constituents that the regulatory process needs to be updated. That's something we're seriously going to take a look at."

Louisiana Economic Development Secretary Stephen Moret said, "Big corporations have whole departments to deal with regulations, but with a small business, it's coming out of your hide. We need to make it easier for people to do business in the state of Louisiana. NFIB is going to have a seat at the table in future discussions about how his department can best help small business."

Other speakers included Insurance Commissioner Jim Donelon, State Treasurer John Kennedy and Labor Secretary Tim Barfield with those discussions surrounding insurance issues specific for small business, the fiscal health of the state and the future of developing our workforce.

Stelly tax reform bill is heading home
Senate Bill 87 by Sen. Buddy Shaw (Shreveport) was heard in the House Ways and Means Committee this week. The bill was amended on the Senate floor to repeal all state income taxes rather than the initial intent of the bill, which was to scrap the higher state income tax rates imposed under a 2002 constitutional amendment introduced by former Rep. Vic Stelly (Lake Charles). The House committee, however, amended the measure again, restoring the bill to its original intent. SB 87 now moves to the House floor for debate. All indications are that the bill will pass and be signed into law.

Lawsuit bills, good and bad
SB 186 by Sen. Rob Marionneaux (Livonia) would extend the deadline for filing civil lawsuits from one year to two. Louisiana is one of only three states with a one-year deadline; some states give plaintiffs as long as six years to file suits. NFIB/Louisiana opposes legislation that exposes small business owners to a longer period of time for lawsuits to be filed. It was reported favorably by the Senate Judiciary A Committee this week without objection and moves to the Senate floor for debate.

SB 307 by Sen. Jack Donahue (Mandeville) was heard in Senate Judiciary A Committee this week but failed to pass out of committee because of a tied vote. The bill would prohibit recovery for loss of enjoyment of life as a separate element of damages apart from pain and suffering damages and prohibits an instruction to the jury which separates loss of enjoyment of life from pain and suffering. This bill is part of a package for legal reform from the Coalition for Common Sense, of which NFIB/Louisiana is a member.
  
Labor union and class action bill heard
HB 1083 by Rep. Patricia Smith (Baton Rouge) is a national initiative by the Carpenter's Union that would essentially eliminate the independent contractor status. Under the bill, the burden of proof would be on the employer to show that all independent contractors are actually independent and not misclassified. It allows for very stiff penalties for employers found at fault for misclassifying an employee as an independent contractor, including criminal charges. It also allows for work to be stopped on job when an employer has been deemed at fault for misclassification, and a civil action may be filed by an employee or a labor union for lost wages. NFIB/Louisiana strongly opposes this bill because it is far reaching and could lead to fines or jail time for small business owners who make an honest mistake. The bill was heard in the House Labor Committee this week with the United Brotherhood of Carpenters testifying in support of it. HB 1083 was voluntarily deferred after much debate and strong opposition from the business community. The bill author agreed to further discussions with business.

SB 499 by Sen. A.G. Crowe (Slidell) would amend the definition of a lobbyist. One of the unintended consequences coming out of the special session on ethics reform earlier this year was an expanded definition of a lobbyist. The definition was expanded to the point that it would require grassroots activists who contact their legislators via e-mail, phone or any other way to register as a lobbyist and pay a registration fee. Obviously, NFIB is strongly opposed to this definition, and SB 499 would be a start to clearing up this matter. NFIB depends on its members to contact their legislators so legislators hear from those people who live in their district.

Mandates mixed bag
SB 535 by Sen. Bill Cassidy (Baton Rouge) would require insurance coverage of substance and alcohol abuse treatment, along with a tax credit for business due to the increased insurance premium. The bill was debated on the Senate floor this week and failed to pass by a vote of 13 to 24. Take a minute to thank the senators who voted against SB 535 and supported NFIB's position. They are: Robert Adley John Alario Jr., Jody Amedee, Sherri Smith Cheek, Don Cravins Jr., A.G. Crowe, Jack Donahue, Yvonne Dorsey, Ann Duplessis, Reggie Dupre Jr., Nick Gautreaux, Troy Hebert, David Heitmeier, Bob Kostelka, Eric LaFleur, Danny Martiny, Mike Michot, Dan "Blade" Morrish, Willie Mount, Neil Riser, Derrick Shepherd, John Smith, Francis Thompson, and Mike Walsworth.

HB 318 by Rep. Chuck Kleckley (Lake Charles), a bill to would require insurance coverage of prosthetic devices and services, was heard in the Senate Insurance Committee this week. NFIB and at least 20 of its members turned in cards of opposition during the committee meeting. The vote was tied at 3 to 3 but the committee chair voted to break the tie in support of the mandated coverage. It now moves to the Senate floor for debate. Please thank Sens. LaFleur, Gerald Long and Morrish, who voted against the bill and supported NFIB's position.

Interestingly, Reps. Chris Roy (Alexandria) and Kleckley recently filed House Concurrent Resolution 131, urging the Department of Insurance to conduct a study on mandated health insurance benefits. It also asks for a survey to identify any long-term cost savings associated with a preventive care mandate as opposed to the long-term cost of the disease if the mandate did not exist. NFIB understands that mandates are only a portion of the increase in health insurance premiums, but small business owners do not believe the Legislature should force them to buy expensive health insurance plans with all the bells and whistles when they only want and can afford basic coverage.

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 speak 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
Arrow BlackLouisiana State Legislature
Arrow BlackLouisiana Department of Economic Development -- Small Business Resources
Arrow BlackLouisiana Small Business Development Centers
Arrow BlackLouisiana Small Business Employee Training
Arrow BlackSmall Business Administration -- Louisiana

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