05/30/2008
There has been a lot of discussion this session about businesses that don't operate on a level playing field -- businesses that pay their workers cash and don't pay unemployment taxes, workers' compensation insurance and income taxes as required by law.
It has become a major problem in Louisiana because of the state's lack of workers, especially in the aftermath of hurricanes Katrina and Rita. Our members believe it's unfair to expect them to compete with businesses that operate illegally.
There are many pieces of legislation this session aimed at curtailing these illegal practices. NFIB/Louisiana is monitoring these bills to ensure they are fair and do not go overboard in their efforts to crack down on dishonest employers by shutting down small businesses for making honest mistakes.
Workers' compensation bills
The Louisianans for Workers' Compensation Reform coalition, of which NFIB was a member, has decided not to move its key piece of legislation this session, Senate Bill 581.
The group has been negotiating with labor to reach a compromise agreement and, rather than pushing through legislation that would not accomplish the coalition's goal of reforming the state's workers' comp system, the group has decided to take its time to draft comprehensive reforms that have support from all sides.
Other workers' comp bills, though, are still pending:
- House Bill 338 by Rep. Cameron Henry (New Orleans) would exclude an employer from being liable for mileage expenses incurred if the injured workers can receive comparable medical services closer to home. The bill is a response to the trend of workers displaced by the hurricanes returning home for medical care despite the additional cost.
- HB 554 by Rep. Patricia Smith (Baton Rouge) would expand the penalties for business intentionally not carrying workers' comp insurance. Louisiana law lets judges fine employers as much as $10,000 for failing to carry workers' comp insurance. Under HB 554, judges could go further and close businesses that don't obtain the insurance within 90 days of being cited.
- HB 1387 by Rep. Patricia Smith (Baton Rouge) originally targeted only those businesses that deliberately misclassify workers as independent contractors to avoid carrying workers' comp insurance and paying state taxes and unemployment taxes.
The original bill was part of a national initiative by the contractors' union to essentially eliminate the independent contractor status. However, in committee, HB 1387 was amended to cover all businesses rather than just the construction industry. Rep. Smith worked with the business community to strike a compromise by so it was not overly reaching in its efforts.
HB 1387 was reported favorably by the House Labor and Industrial Relations Committee and now moves to the House floor for debate.
Legal reform
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. SB 308 passed the Senate floor by a vote of 37-0. NFIB/Louisiana supports this bill because it would help cut costs by saving the court both time and resources as some cases are appealed because of lack of uniform application of qualifying expert witnesses in cases.
Insurance mandates
HB 318 by Rep. Chuck Kleckley (Lake Charles) would require insurance coverage of prosthetic devices and services passed the Senate floor this week by a vote of 26-7. If your legislator is one of the seven who opposed the bill, please thank them. They withstood massive pressure and an emotional debate on the floor and still did what is right for small business. They are Sens. Jody Amedee, Don Cravins, Jack Donahue, Bob Kostelka, Gerald Long, Joe McPherson and Dan "Blade" Morrish.
HB 958 by Rep. Franklin Foil (Baton Rouge) would require health insurance coverage of the diagnosis and treatment of autism spectrum disorders in individual's younger than 21. Specifically, it would mandate coverage of applied behavioral analysis therapy. The bill passed the House floor unanimously.
Member contact with legislators
SB 499 by Sen. A.G. Crowe (Slidell) would amend the definition of a lobbyist and passed the Senate floor. The definition of a lobbyist was expanded in the past to the point that it would require grassroots activists who contact their legislators via e-mail, phone or any other way to pay a fee and register as a lobbyist. Obviously, NFIB is strongly opposed to this definition. We believe SB 499 would be a start to clearing up this matter. It's important that nothing stand in the way of ordinary people contacting their legislators.
Regulatory relief for small business in committee next week
HB 368, called the Regulatory Flexibility Act, by Rep. Rick Nowlin Flex will be heard next Tuesday in the House and Governmental Affairs Committee.
This NFIB-supported bill is a common-sense approach to government regulations. HB 368 would require state agencies to notify small businesses of the costs associated with proposed new rules and regulations. The bill would lend badly-needed transparency to the regulatory process.
If your legislator serves on the House and Governmental Affairs Committee, please contact them to let them know that small business has enough headaches without state government adding to their burden by sending down regulations to fill our more paperwork and jump through more hoops. The committee members are Reps. Rick Gallot, Mert Smiley, Taylor Barras, Patrick Connick, Greg Cromer, Michael Danahay, Noble Ellington, Brett Geymann, Cameron Henry, Michael Jackson, Rosalind Jones, Anthony Ligi, Charmaine Marchand, Karen Carter Peterson, Erich Ponti, Stephen Pugh, Cedric Richard, Jane Smith, Wayne Waddell.
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, who are vying for the Democratic nomination, also are invited. 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
