NFIB

Recent NFIB/Mississippi victories

Strengthened Mississippi's eminent domain law, protecting private property rights
NFIB was the principal voice in ensuring that our state's eminent domain law remained strong in protecting the property rights of the private landowner. Without NFIB's input, weaker compromise versions of HB 100 and HCR 10 would have passed and opened the door in Mississippi to the greater possibility of private land being taken by state and local government for economic development purposes. 

Enacted state deduction and funds protection for health savings accounts, saving up to $255 annually per owner and employee

1. Enacted state deduction for health savings accounts: NFIB was the only business association that lobbied to ensure state income tax relief for HSA contribution payments by helping steer bills to passage. Mississippi already had a tax deduction for medical savings accounts, which have been replaced by Congress with HSAs. The state's MSA deduction needed to be updated to reflect the change.
2. Made HSAs safe from seizure: With the passage of SB 2963, our state's small-business owners, their employees and families can now utilize HSAs for current and future medical expenses without fear of someone being able to snatch these funds from them and their families as a result of a lawsuit or bankruptcy. 

Passed a lower minimum unemployment tax rate, providing $56 million tax savings annually, and defeated a $40 increase in weekly unemployment benefits, saving $33.6 million annually 

1. Lowered unemployment tax: NFIB and other associations worked toward a solution while maintaining a sound trust fund. The resulting new law lowers the 2005 minimum tax rate to 0.9 percent -- a 47 percent tax rate reduction, or some $56 million in savings.
2. Prevented unemployment tax increase: NFIB and one other business association worked together and successfully fought off an AFL-CIO endorsed House amendment to SB 2843 that would have increased weekly unemployment benefits an additional $40. 

Reduced the penalty for underpayment of accelerated state sales/use taxes, saving hundreds to thousands of dollars
NFIB/Mississippi helped pass a bill that reduced a burdensome and unfair penalty of 10 percent for any business that underpays the tax based on its estimate. Under this new law, the 10 percent penalty would only be on the difference in what was actually owed and what was actually paid, resulting in a substantial penalty reduction.

Blocked numerous proposed tax hikes and $55 million in House-passed state agency fee increases, saving thousands of dollars per business annually
The House passed significant fee increases and fund transfers that totaled estimated additional revenues of $700 million in 2004, and passed state agency fee increases of $55 million in 2005. NFIB helped make sure these were defeated in the Senate. NFIB is also working to require legislators to conduct a regular "performance review" of all of state government.

2006 Legislative Session and 2005 Post-Katrina Special Session

• Prevented a weakening of Mississippi's eminent domain law, thereby protecting private property rights and keeping big-business hands off small-business property
• Protected health savings accounts from lawsuits and seizure
• Defeated a $40 increase in weekly unemployment benefits, saving business owners an annual $33.6 million in unemployment insurance taxes or an average of more than $600 per employer
• Halted an automatic statewide profit freeze and price restraints with felony penalties upon any state of emergency by negotiating a compromise that balanced the public's protection from price gouging while preventing government from restraining trade
• Passed a no-interest, disaster loan program after Katrina, providing more than $12.3 million for the recovery of some 500 impacted small businesses
• Defeated a new local government storm water fee based on runoff square footage, closing the door on a new and ever-increasing tax on small businesses and homes
• Stopped a State Tax Commission attempt to require all businesses to report taxes electronically, saving small-business owners compliance and equipment costs of more than $1,000 
• Defeated health insurance mandates, keeping premiums lower for small business

Asset Protection
2002: IRAs Safe From Lawsuits: NFIB/Mississippi was successful in bring equal treatment to Mississippi's 106,000 self-employed. With the passage of SB 2557, our state's self-employed and others can now utilize individual retirement accounts and other pension/annuity plans for their retirement, without fear of someone being able to snatch it from them and their family as a result of a lawsuit or bankruptcy. This law gives those who invest in IRAs the same "due process" protection under Mississippi law as that previously given to those whose retirement is located in government programs and corporate 401(k)s or similar plans.

Bad Checks/Collections
2004: Increased fee chargeable for bad checks: NFIB was instrumental in passing legislation which increases the amount a business can charge for a bad check from the current $30 to $40. It is estimated that 4.5 million bad checks are written annually in Mississippi with a value of $90 million. Statistics also show that some 66 percent of bad checks are uncollected. Based on these numbers, businesses could receive an additional $15 million per year with the $10 bad check charge increase to offset their losses.

Eminent Domain
2006: Landowners protected from eminent domain: NFIB was the principal voice that ensured our state's eminent domain law remained strong in protecting the property rights of the private landowner. In response to the U.S. Supreme Court decision (Kelo v. New London), the House and Senate passed different versions of legislation and constitutional amendments as a state answer to the impact of this case. Without NFIB's input, weaker compromise versions of HB 100 and HCR 10 would have passed and opened the door in Mississippi to the greater possibility of private land being taken by state and local government for economic development purposes. 

Savings to members: If these weaker compromise versions had passed, the likelihood of our state or a local government taking your private property for a Wal-Mart, casino or another "culled cow beef plant" would have increased. 

Environmental Regulations
2006: Local Stormwater Taxes Stopped Again: NFIB/Mississippi helped defeat a strong push by local governments trying to pass a state law that would authorize a new local government storm water fee based on runoff square footage. NFIB/Mississippi closed the door on another new and ever-increasing tax on small businesses and homes, just as it did in 2003.

Financing for Small Business
2005: State Katrina Relief for Small Businesses Secured: One of the key aspects of Gov. Barbour's recovery package during the fifth Special Session of 2005 that began in late September included a no-interest loan program of up to $25,000 for a small business impacted by Katrina. The loans were to help bridge the time until insurance claims were paid or other disaster relief funds or financial assistance was acquired. NFIB helped secure the passage of HB 41 whereby more than $12.3 million has been loaned to help qualifying businesses get up and running through the Mississippi Small Business Disaster Bridge Loan Program, including more than 500 small businesses in a thirteen county area considered the most hurricane-ravaged of the state.

Savings to members: By providing no-interest loans of some $12.3 million, annual interest savings could total more than $738,000 at a 6 percent interest rate, an average savings of more than $1,400 per small business receiving a loan.

Health Insurance
2006: HSAs Safe From Lawsuits: NFIB/Mississippi continued to be the only business lobbying association working on small business' No. 1 problem -- health insurance and medical costs. With the passage of SB 2963, our state's small business owners, their employees and families can now utilize health savings accounts for current and future medical expenses without fear of someone being able to snatch it from them and their family as a result of a lawsuit or bankruptcy. 

Savings to members: A higher deductible health insurance policy combined with an HSA have helped to lower premiums an average of about 40 percent. Investing annually into an HSA allows a small-business owner to pay medical expenses that are either subject to the deductible amount or not covered by their policy with federal and state tax deductible dollars. Since a single insured can now make an annual, tax deductible contribution of a maximum of $2,600 or a family maximum of $5,150 into an interest-bearing HSA, this sizeable growing investment is now protected from seizure as a result of this new state law written by NFIB/Mississippi. That protection provides a significant "peace of mind" for the future health needs of a small business owner and their family, much like NFIB/Mississippi previously protected individual retirement accounts (IRAs) from seizure.

2005: Enact state deduction for health savings accounts: To lower the cost of their No. 1 problem -- lack of access to affordable health insurance -- Mississippi small businesses needed a state income tax deduction, similar to a federal provision, for contributions made by employers and employees to health savings accounts. NFIB was the only business association that lobbied to ensure state income tax relief for HSA contribution payments made in 2005. 

Savings to members: With an HSA, small-business owners are saving an average of 35 percent to 50 percent off their health insurance premium costs. With the newly added tax-deductible state benefit, members will save even more. A single insured contributing the maximum of $2,600 per year or a family maximum of $5,150 per year, can pocket an additional annual amount of up to $130 to $255, respectively.

2003: Health Mandates Defeated: Legislators introduced a record number of health insurance mandates that would have increased the costs of every health policy. Thankfully, as a result of NFIB's and only one other business association's continued stand, none passed. NFIB has succeeded many years in keeping well-intended but costly mandates from driving up the cost of health insurance even further in Mississippi.

1999: Health Insurance Deduction: NFIB/Mississippi single-handedly and successfully obtained more equal tax treatment for the 92,000 self-employed with a state income tax adjustment to gross income for their family's health insurance costs, the same as NFIB/Mississippi had secured at the federal level. It provided more than $1.5 million in tax relief for 1999, which increased to more than $4 million annually when full deductibility was allowed in 2003.

Taxes and Fees, State
2005: Held off tax and fee increases: Many lawmakers and top statewide elected officials held true to their 2003 election-year promises that they would not support any tax or fee increases to fund our state government. NFIB worked to advance the views of our membership that no tax or fee increases should be considered until state government gets control of its own out-of-control spending of one-time funds on new or expanded programs. The House passed significant fee increases and fund transfers that estimated additional revenues of $700 million in 2004, and passed state agency fee increases of $55 million in 2005. NFIB helped make sure these were defeated in the Senate. Over the last 10 years, Mississippi's tax revenues increased 34 percent but spending increased 50 percent.  Since 2000, debt service has risen 70 percent, and funding for the state Medicaid program increased 109 percent. Also during the last five years, funding for K-12 education (always the legislature's top priority) increased 46 percent, with about the same number of students. In addition to standing firm against tax and fee increases, NFIB is also working with the Manufacturers' Association and over 16 other business and trade associations to require legislators to conduct a regular "performance review" of all of state government. This is similar to what businesses have to do routinely to maintain accountability and efficiency -- or just plain control spending. It's time to let the taxpayers take a closer look at what we're getting for our money. 

Unemployment Tax
2006: Prevented Unemployment Tax Increase: NFIB and one other business association worked together and successfully fought off an AFL-CIO endorsed House amendment to SB 2843 that would have increased weekly unemployment benefits an additional $40. 

Savings to members: If passed, the proposed unemployed benefit could have cost Mississippi employers approximately $33.6 million annually in unemployment insurance taxes.

2005: Lowered Unemployment Tax and Increased Workforce Training Dollars: When Gov. Barbour recognized there would be an automatic unemployment tax increase under the state's current law, he took immediate action. The 2004 minimum unemployment tax rate was 1.2 percent, and the 2005 minimum rate was scheduled to increase to 1.7 percent, which would cause a $35 million increase. The governor called in NFIB, the Mississippi Manufacturers Association (MMA), community colleges and the Department of Employment Security to work toward a solution while maintaining a sound trust fund. The law that resulted lowered the 2005 minimum tax rate to 0.9 percent -- resulting in a 47 percent tax rate reduction, or some $56 million in savings. 33,000 of the 55,000 businesses that pay UI taxes are small business owners. The law also authorized a first-time diversion of approximately $20 million for workforce training. 

Savings to members: $56 million overall tax savings for 2005, with similar savings annually, to all taxpaying businesses. For members who pay the minimum tax rate, an annual tax savings of $56 per employee.

Tort Reform
2004: Helped lead passage of Most Meaningful Tort Reform in United States: NFIB was an outspoken leader assisting Gov. Barbour and Lt. Gov. Tuck in the passage of meaningful tort reform, which was acclaimed as the most significant tort reform in the nation in 2004. NFIB was the first MS business group to tour the state and make the media and public aware of the critical need for tort reform. The 2004 special session law (HB 13) significantly deters lawsuit abuse and will provide fair, balanced and predictable civil justice in Mississippi. It favorably impacts every Mississippian, every business, and every medical service provider and provides critical protection for innocent sellers and landowners. Reasonable caps were finally placed on punitive and non-economic damages, and no longer will one defendant have to pay for another defendant's liability under the old "deep pocket" philosophy. NFIB's State Director Ron Aldridge was named by Gov. Barbour as chairman of his Task Force on Tort Reform soon after his election. The new law ensures:

• Non-Economic Caps: $500,000 on medical liability claims; $1 million on all other. Disfigurement included in non-economic cap.
• Innocent Seller Protection: Sellers are not liable if they are mere conduits and did not know of defect;
• Elimination of Joint Liability: Defendant is only liable for own apportioned liability-several liability only; no reallocation of fault is allowed from one immune or limited by law. 
• Limited Venue (Forum Shopping): Proper venues can be: where defendant resides, corporate defendant's principal place of business, where injury occurred or where defective product sold; for medical providers, proper venue is where act of omission occurred; each plaintiff must establish proper venue, thereby keeping out-of-state cases from being joined together in certain favorable courts.
• Premises Liability Protection: Provides liability protection for owner of business when injured independent contractor (or an employee) should have known or knew of the danger.
• Bench Trial: Allows judge-only bench trial (without jury) within 270 days for agreeing parties.

Utility Costs
2002: Electric Company's Rate Increase Request Reduced: Thanks to NFIB filing as an intervenor in Mississippi Power Company's 2002 rate increase request and giving testimony before the state's Public Service Commission, the utility was only allowed a 2.23 percent increase, instead of the 9.5 percent it requested for its 23-county service area in south and east central Mississippi.

2000: Interstate Phone Sales Tax: NFIB's continued involvement and testimony helped save taxpayers more than $6 million in new taxes per year by lowering last year's recommendation of 7 percent to a 5.5 percent sales tax on interstate phone calls (SB 2512).

1999: Interstate Phone Sales Tax: NFIB's business coalition involvement and testimony defeated a $36 million annual tax increase (HB1581) from a proposed 7 percent sales tax on interstate long distance phone calls. This major phone company effort would have provided them an annual rebate of $27 million of local property taxes and $9 million to local governments and schools.

Workers' Compensation
2006: Workers' Compensation Reform Needed Again -- NFIB/Mississippi Helps Form Coalition: Earlier this year, NFIB/Mississippi helped the Mississippi Manufacturers Association organize a coalition of 16 business groups and associations for the purpose of addressing certain needed changes in our workers' compensation laws. Mississippians for Workforce Protection put forward three bills -- HB 1146 to restore the law's original intent of "fair interpretation" for all parties;  HB 1147 to confirm the "exclusive remedy" of the workers' compensation system and keep cases out of court until administrative procedures at the commission have been exhausted; and HB 1295 to provide a reasonable means to administer post accident drug testing and govern admissibility of those test results to determine if alcohol or drugs were the cause of a work-related accident.

The coalition includes: NFIB/Mississippi, MS Manufacturers Assn., MS Economic Council, Assn. of Gen. Contractors of MS, Ind. Insurance Agents of MS, MS Home Builders Assn., MS Hospitality & Restaurant Assn., MS Ind. Auto Dealers Assn., MS Manufactured Housing Assn., MS Petroleum Marketers & Convenience Stores Assn., Retail Assn. of MS, MS Poultry Assn., MS Road Builders Assn., MS Trucking Assn., MS Assn. of Self Insurers, and N. American Coal Corp.

The House Insurance Committee passed all three bills. However, two of the bills were double-referred to Judiciary A and the other to Appropriations, where all met their death without a vote of either committee. The coalition will continue to push this needed legislation to bring more fairness and impartiality to this costly business-supported system of compensating injured workers.

Members most likely to be impacted: All businesses who have workers' compensation insurance.

2006: Protected Threshold for Mandatory Workers' Compensation Insurance: NFIB defeated an effort by a business trade association to remove the current state law's five-employee minimum threshold for mandatory workers' compensation coverage on residential builders and remodelers. This exemption from required WC insurance costs applies to all businesses with fewer than five employees. However, if the exemption would have been taken from this group, the splintering of this significant cost-protection would begin for all small businesses. Labor groups and trial lawyers would have seized this opportunity to remove the exemption for all in the future. Nothing currently stops any employer, regardless of their number of employees, from purchasing worker compensation coverage now, but removing the exemption forces the smallest employers to purchase it -- even if they can't afford it.

Savings to members: If this had passed, all residential builders and remodelers, regardless of how few employees they had, would have been required to provide workers' compensation insurance on all employees.

1992: Major Workers' Compensation Reform: NFIB played a vital role in the passage of a very significant and meaningful workers' compensation package (HB 1091). The main thrust of the legislation was to make workers' compensation more affordable and available by reducing medical costs, improving worker safety, and allowing business owners to assume some of the risk through possible exemptions and deductibles. NFIB alone got a provision that allows business owners to exempt themselves from workers' compensation coverage and thereby exclude themselves as a statutory employee. By utilizing this exemption, two business-owner employees with four other employees saved a minimum annual WC premium of approximately $365 to over $30,000 per year, or $3,435 for the average premium, and if in the assigned risk pool, an additional 20 percent savings.

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